Smiths News PLC (SNWS) AI Stock Analysis

• Market Cap: £165.76M
• Dividend Yield: 9.74%
• Average Volume (3M): 680.10K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.71
• Revenue Growth: -3.60%
• EPS Growth: 9.98%
• Country: UK
• Employees: 1,388
• Sector: Communication Services
• Sector Strength: 97
• Industry: Publishing
• EPS (TTM): 0.06
• Shares Outstanding: 247,659,200
• 10 Day Avg. Volume: 568,394
• 30 Day Avg. Volume: 680,103
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £87.50
• Price Target Upside: 48.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 7.67
• Revenue Forecast (FY): £76.57B

• Rating: 74 Outperform
• Price Target: 80.00p ▲(36.05% Upside)

Smiths News PLC scores well due to its strong valuation metrics and positive technical indicators. The low P/E ratio and high dividend yield make it an attractive investment, while the technical analysis supports a bullish outlook. Financial performance is moderate, with strengths in cash flow and operational efficiency, but concerns remain regarding high debt levels and negative equity.

Positive Factors

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing Smiths News to invest in growth opportunities and manage debt effectively.

Operational Efficiency

Consistent profit margins indicate effective cost management and operational efficiency, supporting long-term profitability despite revenue declines.

Debt Management

Improved debt management reduces financial risk, enhancing the company's ability to sustain operations and invest in strategic initiatives.

Negative Factors

Revenue Decline

A decline in revenue growth can limit the company's ability to expand and compete, potentially impacting long-term market position and profitability.

High Debt Levels

High debt levels increase financial risk and can strain cash flow, limiting the company's ability to invest in growth and respond to market changes.

Negative Equity

Negative equity reflects financial instability, posing challenges in generating shareholder returns and maintaining investor confidence.

Smiths News PLC Business Overview & Revenue Model

Company Description

Smiths News plc, together with its subsidiaries, engages in the wholesaling of newspapers and magazines in the United Kingdom and internationally. It also supplies inflight entertainment to airlines and travel points; and offers field-based merchandising and marketing, supply chain auditing, and compliance solutions to retailers and suppliers. The company was formerly known as Connect Group PLC and changed its name to Smiths News plc in November 2020. Smiths News plc was incorporated in 2004 and is based in Swindon, the United Kingdom.

How the Company Makes Money

Smiths News generates revenue primarily through the wholesale distribution of newspapers and magazines to a diverse client base of retailers across the UK. The company operates on a model where it purchases publications from publishers at a discounted rate and sells them at a markup to retailers, thus generating a profit margin on each sale. Key revenue streams include the sale of print media, logistics services, and any additional distribution services provided to customers. Strategic partnerships with major publishers and a strong logistical network contribute significantly to its earnings, as they enable the company to maintain a steady supply chain and optimize delivery efficiency, ensuring that retailers receive timely access to popular publications.

Smiths News PLC Financial Statement Overview

Summary

Smiths News PLC shows stable revenue and margin performance, but significant risks are posed by financial leverage and negative equity. Cash flow management is a relative strength, though recent declines in free cash flow growth 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.06B	1.06B	1.10B	1.09B	1.09B	1.11B
Gross Profit	74.60M	74.60M	73.20M	72.50M	72.70M	73.40M
EBITDA	50.90M	50.90M	48.90M	47.30M	44.90M	50.00M
Net Income	28.30M	28.30M	25.50M	25.10M	23.40M	26.30M
Balance Sheet
Total Assets	174.00M	174.00M	179.60M	195.30M	189.40M	186.20M
Cash, Cash Equivalents and Short-Term Investments	8.20M	8.20M	7.00M	37.30M	35.30M	19.30M
Total Debt	32.20M	32.20M	48.50M	63.40M	74.70M	100.50M
Total Liabilities	164.50M	164.50M	182.90M	211.60M	221.40M	243.90M
Stockholders Equity	9.50M	9.50M	-3.30M	-16.30M	-32.00M	-57.70M
Cash Flow
Free Cash Flow	35.15M	42.70M	14.70M	33.00M	47.80M	39.00M
Operating Cash Flow	37.90M	46.60M	18.10M	36.40M	49.80M	41.40M
Investing Cash Flow	-4.50M	-4.50M	-4.40M	-3.50M	12.30M	4.40M
Financing Cash Flow	-40.90M	-40.90M	-44.00M	-30.90M	-46.10M	-76.90M

Smiths News PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 58.8 is below the 20-day moving average (MA) of 67.72, below the 50-day MA of 64.25, and above the 200-day MA of 54.88, indicating a bullish trend. The MACD of 1.47 indicates Positive momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 12.11 is Positive, 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
BMY	76 Outperform	£390.09M	17.24	11.01%	3.26%	-11.68%	-40.06%
SNWS	74 Outperform	£165.76M	5.92	912.90%	9.74%	-3.60%	9.98%
PSON	73 Outperform	£6.71B	15.92	11.94%	2.32%	-0.82%	30.81%
RCH	65 Neutral	£177.36M	3.55	7.38%	11.37%	-4.44%	19.95%
FUTR	63 Neutral	£488.24M	8.33	6.31%	0.53%	-6.22%	-6.69%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CAU	56 Neutral	£62.31M	-5.77	-32.35%	4.09%	-13.72%	-361.92%

Smiths News PLC Corporate Events

Smiths News PLC Publishes 2025 Annual Report and Announces AGM

Smiths News PLC has published its Annual Report and Accounts for 2025 and announced the Notice of its Annual General Meeting (AGM), which will be held on January 29, 2026. The documents have been submitted to the National Storage Mechanism and are available for inspection, reflecting the company’s commitment to transparency and stakeholder engagement. This announcement underscores Smiths News’ operational focus and strategic positioning in the UK distribution market, as it continues to build on its strong foundation and explore growth opportunities.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News Director Acquires Shares, Signaling Confidence

Smiths News PLC announced that Deborah Rabey, a non-executive director, purchased 13,866 ordinary shares at an average price of 71.49p. This transaction, conducted on the London Stock Exchange, reflects the director’s confidence in the company’s future performance and may positively influence stakeholder perceptions.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News PLC Executives Exercise Deferred Bonus Plan Shares

Smiths News PLC announced the exercise and sale of shares under its Deferred Bonus Plan for FY2025, involving key executives. The transactions, executed to cover tax liabilities, reflect a strategic move to align executive incentives with shareholder interests, potentially impacting the company’s market perception and stakeholder confidence.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News CEO Exercises and Sells Shares to Cover Liabilities

Smiths News PLC announced a transaction involving its CEO, Jonathan Bunting, who exercised 745,227 shares from the Long Term Incentive Plan and received 193,026 shares as a dividend equivalent payment. To cover the tax and national insurance liabilities, Bunting sold 442,530 ordinary shares. This transaction reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting its market perception and stakeholder relations.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News PLC Grants Nil-Cost Share Options to Executives

Smiths News PLC announced the grant of nil-cost share options to its CEO and CFO as part of a Deferred Bonus Plan for FY2025. This move, involving a significant number of shares, reflects the company’s commitment to aligning executive incentives with long-term shareholder value, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News Director Acquires Significant Shareholding

Smiths News PLC announced a significant transaction involving its shares. Manju Malhotra, a non-executive director of the company, purchased 30,006 ordinary shares at an average market price of 66.30p on November 14, 2025. This transaction, conducted on the London Stock Exchange, reflects insider confidence in the company’s prospects and could influence stakeholder perceptions positively.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.

Smiths News PLC Reports Strong Financial Performance and Strategic Growth

Smiths News PLC announced its final results for the 52 weeks ending 30 August 2025, reporting an operating profit ahead of market expectations, driven by strong performance in collectables. The company achieved a revenue of £1,064m, with a 16% growth from new verticals and secured 93% of revenues to 2029. The company also reported increased cash generation and proposed a higher ordinary and special dividend, reflecting its robust financial performance and strategic focus on expanding its service capabilities and maintaining operational efficiencies.

The most recent analyst rating on (GB:SNWS) stock is a Hold with a £61.00 price target. To see the full list of analyst forecasts on Smiths News PLC stock, see the GB:SNWS Stock Forecast page.