Smiths News PLC (SNWS) AI Stock Analysis

• Market Cap: £138.93M
• Dividend Yield: 0.06%
• Average Volume (3M): 349.94K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.60
• Revenue Growth: 1.73%
• EPS Growth: 16.14%
• Country: UK
• Employees: 1,388
• Sector: Communication Services
• Sector Strength: 92
• Industry: Publishing
• EPS (TTM): 0.05
• Shares Outstanding: 247,659,200
• 10 Day Avg. Volume: 282,476
• 30 Day Avg. Volume: 349,944
• PEG Ratio: 0.33
• Price to Book (P/B): -6.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £95.00
• Price Target Upside: 63.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: 64.00p ▲(10.34%Upside)

Smiths News PLC's stock score reflects strong valuation metrics and positive corporate developments, such as securing long-term contracts. However, significant balance sheet risks due to negative equity temper the outlook. Technical indicators suggest current positive momentum, though caution is advised due to possible resistance levels.

Smiths News PLC Business Overview & Revenue Model

Company Description

Smiths News PLC (SNWS) is a leading UK-based wholesaler specializing in the distribution of newspapers and magazines. The company operates within the logistics and distribution sector, providing essential supply chain services to a wide range of retailers. With a robust network and a well-established infrastructure, Smiths News ensures timely and efficient delivery of printed media across the UK.

How the Company Makes Money

Smiths News PLC primarily generates revenue through the wholesale distribution of newspapers and magazines. The company purchases these products from publishers and distributes them to retailers, earning a margin on each transaction. Key revenue streams include distribution fees and service charges associated with logistics and delivery operations. The company's earnings are also influenced by its ability to maintain strong relationships with publishers and retailers, ensuring a steady flow of products through its network. Additionally, Smiths News may engage in strategic partnerships that enhance its distribution capabilities or expand its service offerings, further contributing to its financial performance.

Smiths News PLC Financial Statement Overview

Summary

Smiths News PLC demonstrates operational stability with steady revenue and margin performance. However, substantial risks arise from financial leverage and negative equity on the balance sheet. Cash flow management is relatively strong, but recent declines highlight operational challenges.

Income Statement

Smiths News PLC has demonstrated consistent revenue stability with a slight increase to £1.1037 billion in 2024 from £1.0919 billion in 2023. Gross profit margins have remained stable around 6.5%, and the company has shown a modest increase in net profit margins to 2.31% in 2024. The EBIT and EBITDA margins have improved slightly, indicating efficient cost management. However, the overall revenue growth remains relatively flat, reflecting challenges in expanding market share or product offerings.

Balance Sheet

The company's balance sheet indicates financial leverage with a negative stockholder equity, which suggests potential solvency concerns. Although there is a reduction in total debt, the debt-to-equity ratio is not calculable due to negative equity, posing a high financial risk. The equity ratio is also negative, indicating that liabilities exceed assets. While the reduction in debt over the years is a positive sign, the negative equity presents a significant risk to financial stability.

Cash Flow

Smiths News PLC has managed to maintain positive free cash flow, although it has decreased from the previous year's high. The operating cash flow to net income ratio reflects adequate cash generation relative to reported profits. Despite a healthy cash flow position relative to net income, the decline in free cash flow growth rate indicates potential challenges in sustaining cash generation levels. The reduction in operating cash flow from last year also suggests potential operational inefficiencies or increased working capital requirements.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.10B	1.09B	1.09B	1.11B	1.16B
Gross Profit	73.20M	72.50M	72.70M	73.40M	72.90M
EBITDA	48.90M	47.30M	44.90M	50.00M	32.70M
Net Income	25.50M	25.10M	23.40M	26.30M	12.00M
Balance Sheet
Total Assets	179.60M	195.30M	189.40M	186.20M	232.40M
Cash, Cash Equivalents and Short-Term Investments	7.00M	37.30M	35.30M	19.30M	50.60M
Total Debt	48.50M	63.40M	74.70M	100.50M	163.50M
Total Liabilities	182.90M	211.60M	221.40M	243.90M	314.00M
Stockholders Equity	-3.30M	-16.30M	-32.00M	-57.70M	-81.60M
Cash Flow
Free Cash Flow	14.70M	33.00M	47.80M	39.00M	14.10M
Operating Cash Flow	18.10M	36.40M	49.80M	41.40M	23.40M
Investing Cash Flow	-4.40M	-3.50M	12.30M	4.40M	-4.70M
Financing Cash Flow	-44.00M	-30.90M	-46.10M	-76.90M	24.10M

Smiths News PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNWS, the sentiment is Positive. The current price of 58 is above the 20-day moving average (MA) of 57.60, above the 50-day MA of 56.30, and above the 200-day MA of 55.10, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 53.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SNWS.

Smiths News PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LBG	75 Outperform	£205.73M	24.97	12.42%	―	―	―
RCH	74 Outperform	£226.28M	4.22	8.15%	9.22%	-5.28%	148.54%
BMY	74 Outperform	£416.15M	16.38	12.17%	3.04%	38.83%	76.57%
SNWS	72 Outperform	£138.93M	5.10		0.06%	1.73%	16.14%
SAA	67 Neutral	£229.09M	18.17	33.95%	0.76%	-12.89%	―
Sector *	67 Neutral	£1.90B	9.98	-3.58%	3.29%	2.98%	-67.33%
NFG	55 Neutral	£242.22M	6.10	23.38%	1.98%	-0.66%	-26.16%

Smiths News PLC Corporate Events

Smiths News PLC Reports Stable Interim Results with Strong Revenue Stream Secured

Smiths News PLC reported its unaudited interim results for the 26 weeks ended 1 March 2025, showing a stable start to the fiscal year with performance aligning with market expectations. The company secured 91% of its existing publisher revenue streams, ensuring short and medium-term revenue stability and supporting the expansion of its early morning supply chain activities. Financial highlights include revenues of £536.4m, a slight decrease from the previous year, but an increase in adjusted operating profit by 3.2% to £19.4m. The company also achieved significant cost savings and strong free cash flow, with major contract renewals providing a solid platform for future growth.