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SNN

NYSE
Neutral · 56/100

Smith & Nephew PLC

Health Care
Health Care

$30.16

0.9%

Updated Today 3:42 PM ET

Report Card

SNN at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Neutral · 56/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 0.3% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$12.09B

P/E

20.32x

Forward P/E (est.)

14.51x

ROE

11.6%

Revenue Growth

6.1%

EPS Growth

52.3%

Profit Margin

10.1%

FCF Yield

2.5%

Debt / Equity

0.63x

ROIC

10.0%

Interest Coverage

5.67x

Current Ratio

2.57x

Dividend Yield

2.6%

Implied Growth (rev. DCF)

1.8%

Rating Score

56/100

Business Overview
Research

Smith & Nephew PLC (SNN) is a large-cap company in the Health Care industry, part of the Health Care sector of the S&P 500, with a market value around $12.09B.

In its latest reported year it generated about $6.16B in revenue and $625.00M in net profit.

Our model rates SNN Neutral (56/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Economic Moat

Evidence of durable competitive advantage in the filed financials (10 years of history).

Wide moat signalsMoat evidence score: 81/100

The filed history looks like a business competitors struggle to attack: high and steady margins, revenue that grows through cycles, and strong returns on capital.

Gross margin level100/100

68.8% average over the last 3 years

Gross margin stability74/100

±2.1 pts around 71.1% across 10 years

Revenue durability89/100

grew in 8 of the last 9 year-over-year periods

Free-cash-flow consistency100/100

positive in 10 of 10 years

Return on invested capital25/100

10.0% latest fiscal year

A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SNN's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SNN trades near $30.16, below its 50-day average ($30.33) and 200-day average ($33.22). Price below both averages is a downtrend — momentum is against buyers for now.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 48 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. SNN's is $0.70 (~2.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month SNN found buyers near $28.56 (support) and sellers near $31.40 (resistance); its 52-week range is $28.56–$38.79. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.5× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

4.3%

3/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $4.67B in 2016 to $6.16B in 2025, a 3.1% compound annual growth rate. The most recent year grew a steady 6.1% year over year. Slower, mature growth is common for established businesses.

Profitability
Research
1/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

68.0%

Operating Margin

12.9%

Net Margin

10.1%

ROE

11.6%

Smith & Nephew PLC keeps about 10.1% of each sales dollar as net profit, with a 68.0% gross margin and 12.9% operating margin. Return on equity is 11.6% and return on invested capital about 10.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
4/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$1.30B

Net Debt

$744.00M

Net Debt / EBITDA

0.94x

Debt / Equity

0.63x

Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 5.7x, with a current ratio of 2.6x. That is a moderate, manageable debt load for most businesses. It carries roughly $1.30B of total debt against $557.00M of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$1.28B

Free Cash Flow

$852.00M

FCF Margin

13.8%

In the latest year Smith & Nephew PLC produced about $1.28B of operating cash flow and $852.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 2.5% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Dividend Safety

Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.

BorderlineSafety score: 69/100

The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.

Dividend yield

2.6%

Total paid (latest FY)

$330.00M

History on record

10 years

Free-cash-flow coverage100/100

dividend uses 39% of free cash flow

Earnings payout ratio77/100

53% of net income paid out

Raise streak13/100

total dividends increased 1 year in a row

Cut history100/100

no cuts in the last 10 years on record

Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

20.32x

P/S

2.06x

P/B

2.64x

EV / EBITDA

10.51x

SNN trades at 20.3x trailing earnings (about 14.5x on estimated forward earnings), 2.1x sales, and 2.6x book value. Reverse-engineering today's price implies the market expects roughly 1.8% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$18.75

Current price

$30.16

-38% · Above fair-value estimate

Starting FCF (latest 10-K)

$852.00M

Growth, years 1–5

6.1%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$7.21B
PV of terminal value$9.25B
Estimated equity value$16.46B
Shares outstanding878M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where SNN sits versus its Health Care sector peers in the S&P 500.

TTM P/E
20.3xFair
Forward P/E
14.5xCheap
P/S ratio
2.1xFair
Revenue growth
6.1%Average
EPS growth
52.3%Strong
Gross margin
68.0%Average
Net margin
10.1%Average
ROE
11.6%Average

Bands show the middle half (25th–75th percentile) of the 83 Health Care companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How SNN stacks up against its Health Care peers — valuation, profitability, and growth versus the sector median.

In the Health Care sector (324 S&P 500 companies), SNN ranks #35 of 324 by our overall rating. It trades at a discount versus the sector on earnings (20.3x P/E vs. 25.4x median) with a lower return on equity (11.6% vs. 14.1%) and slower revenue growth (6.1% vs. 7.6%).

P/E vs sector

20.3x

median 25.4x

ROE vs sector

11.6%

median 14.1%

Growth vs sector

6.1%

median 7.6%

Sector rank

#35

of 324 by rating

CompanyP/ERev Gr.Rating
SNNThis stock20.3x6.1%Neutral· 56
MOH62.7x7.7%Weak· 28
FMS11.6x-0.7%Neutral· 53
PEN73.3x17.3%Neutral· 52
GMED18.5x23.5%Strong· 77
EHC17.3x10.1%Favorable· 65
THC10.3x6.6%Favorable· 60
PHG23.3x-25.8%Neutral· 44
Health Care median25.4x7.6%0/100

Valuation vs. quality map

sector medianMOHFMSPENGMEDEHCTHCPHGSNNP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Health Care companies by sub-industry and size. Sector median is across all 324 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $30.16 today · expected CAGR -4%6%

Metric20262027202820292030
Revenue$6.53B$6.93B$7.34B$7.78B$8.25B
Net income$653.38M$692.59M$734.14M$778.19M$824.88M
EPS$1.63$1.73$1.83$1.94$2.06
Share price (low)$19.56$20.73$21.98$23.30$24.69
Share price (high)$32.60$34.56$36.63$38.83$41.16
CAGR (low–high)-35% / 8%-17% / 7%-10% / 7%-6% / 7%-4% / 6%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for SNN:

  • Pays a 2.6% dividend on top of any price gains.
  • As an established S&P 500 member in Health Care, it brings scale and a long operating history.
Bear Case

The case against SNN:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Smith & Nephew PLC is a large-cap health care business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 20.3x earnings, which our model scores Neutral (56/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Analyst Ratings

What 24 Wall Street analysts covering SNN recommend (July 2026). Consensus is a useful sanity check — not a substitute for your own homework.

Buy
consensus · score 3.7 / 5 across 24 analysts
Strong Buy 5Buy 7Hold 12Sell 0Strong Sell 0

Latest SEC Filings

SNN's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.

In the Idea Lab

SNN — frequently asked questions

Is SNN a good stock to buy?

We don't give buy or sell advice. Our model rates Smith & Nephew PLC Neutral (56/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is SNN's rating on The Stocks School?

Smith & Nephew PLC currently scores 56/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does SNN's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Smith & Nephew PLC's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for SNN calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this SNN analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SNN. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.