SNNSmith & Nephew exhibits strong fundamental performance with a solid market position and consistent dividend payouts. While its valuation is reasonable, some technical indicators suggest a cautious short-term outlook. Thematic alignment with healthcare innovation and an aging global population provides long-term tailwinds.
Smith & Nephew benefits from significant thematic tailwinds in healthcare, driven by an aging global population, increasing demand for minimally invasive procedures, and advancements in medical technology.
Smith & Nephew demonstrates robust financial health with consistent revenue generation, healthy gross margins, and a commitment to returning capital to shareholders via dividends. While profitability improved in the latest reporting period, the P/E ratio suggests current valuation reflects significant growth expectations.
Smith & Nephew's stock is trading below key moving averages on shorter timeframes, suggesting a short-term bearish bias. However, longer-term technicals like the 1-day RSI show it in neutral territory, indicating a lack of strong immediate directional conviction.
| Factor | Score |
|---|---|
| Aging Population | 95 |
| Medical Technology Innovation | 88 |
| Healthcare Spending Growth | 80 |
| Emerging Markets Penetration | 75 |
| Competitive Landscape | 87 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 70 |
| Growth | 75 |
| Balance Sheet Health | 70 |
| Cash Flow | 78 |
| Dividend Yield | 65 |
| Factor | Score |
|---|---|
| Trend Analysis | 45 |
| Momentum | 60 |
| Volume Confirmation | 70 |
| Support & Resistance | 65 |
| Short-term Indicators | 50 |
Strong Cash Position
The company maintained a healthy end cash position of $617 million in 2024Q4, with operating cash flow of $987 million in the same period.
Improving Net Margin
The net margin improved from 4.7% in 2023Q4 to 7.1% in 2024Q4, indicating enhanced profitability on revenue.
Increasing Debt Load
Total debt increased from $3.084 billion in 2023Q4 to $3.321 billion in 2024Q4, while free cash flow saw a significant drop from $608 million to $606 million in the same periods.
Short-Term Weakness Indicated
Multiple moving averages on shorter timeframes (1m, 5m, 15m, 30m) are showing 'Sell' signals, with the 1-minute Hull Moving Average at 31.47 suggesting potential downside.
March 2025
28
Ex-Dividend Date
May 2025
28
Next Dividend Date
August 2025
5
Next Earnings Date
H: $
A: $
L: $
H: 1.53B
A: 1.52B
L: 1.51B
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom, the United States, and internationally. It operates in three segments: Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. The company offers knee implant products for knee replacement procedures; hip implants for revision procedures; trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures; and other reconstruction products. It also provides sports medicine joint repair products comprise instruments, technologies, and implants to perform minimally invasive surgery, as well as treating soft tissue injuries and degenerative conditions of the shoulder, knee, hip, and small joints. In addition, the company offers arthroscopic enabling technologies comprising fluid management equipment for surgical access, cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency, electromechanical and mechanical tissue resection devices, and hand instruments for removing damaged tissue; and ear, nose, and throat solutions. Further, it provides advanced wound care products for the treatment and prevention of acute and chronic wounds, leg, diabetic and pressure ulcers, burns, and post-operative wounds; advanced wound bioactives, such as biologics and other bioactive technologies for debridement and dermal repair/regeneration, and regenerative medicine products, including skin, bone graft, and articular cartilage substitutes; and advanced wound devices, such as traditional and single-use negative pressure wound therapy, and hydrosurgery systems. The company serves the healthcare providers. Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.
33.15 USD
The 39 analysts offering 1 year price forecasts for SNN have a max estimate of 38.00 and a min estimate of 28.00.