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Smiths News PLC
(LSE:SNWS)
Select Model
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Rating:74Outperform
Price Target:
80.00 p
▲(36.05% Upside)
Action:Upgraded
Date:12/19/25
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 generation
A large increase in free cash flow (153.4%) and strong operating cash flow to net income indicate durable cash conversion. This provides flexibility to service debt, fund necessary capex, sustain distributions and invest in efficiency improvements despite cyclical revenue pressure.
Negative Factors
High leverage
Negative equity and a high debt-to-equity ratio reduce financial flexibility and raise refinancing risk over time. This leverage profile limits the firm's ability to invest in diversification or absorb shocks, making long-term execution and strategic moves more constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
A large increase in free cash flow (153.4%) and strong operating cash flow to net income indicate durable cash conversion. This provides flexibility to service debt, fund necessary capex, sustain distributions and invest in efficiency improvements despite cyclical revenue pressure.
Read all positive factors
Smiths News PLC (SNWS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£161.93M
Dividend Yield9.74%
Average Volume (3M)680.10K
Price to Earnings (P/E)6.3
Beta (1Y)0.49
Revenue Growth-5.18%
EPS Growth-2.29%
CountryUK
Employees1,388
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)0.11
Shares Outstanding247,659,200
10 Day Avg. Volume568,394
30 Day Avg. Volume680,103
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)14.19
Price to Sales (P/S)0.13
P/FCF Ratio3.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£91.67Price Target Upside55.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.1
Revenue Forecast (FY)£1.03B
Smiths News PLC Business Overview & Revenue Model
Company Description
Smiths News plc, operating with its various divisions, primarily functions as a wholesale distributor of newspapers and magazines across both the United Kingdom and global markets. Beyond its core distribution, the company extends its services to ...
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 discou...
Smiths News PLC Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
50
Neutral
Cash Flow
75
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.04B | 1.06B | 1.10B | 1.09B | 1.09B | 1.11B |
| Gross Profit | 74.40M | 74.60M | 73.20M | 72.50M | 72.70M | 73.40M |
| EBITDA | 51.20M | 50.90M | 48.90M | 47.30M | 44.90M | 50.00M |
| Net Income | 27.00M | 28.30M | 25.50M | 25.10M | 23.40M | 26.30M |
Balance Sheet | ||||||
| Total Assets | 169.60M | 174.00M | 179.60M | 195.30M | 189.40M | 186.20M |
| Cash, Cash Equivalents and Short-Term Investments | 10.50M | 8.20M | 7.00M | 37.30M | 35.30M | 19.30M |
| Total Debt | 29.60M | 32.20M | 48.50M | 63.40M | 74.70M | 100.50M |
| Total Liabilities | 163.70M | 164.50M | 182.90M | 211.60M | 221.40M | 243.90M |
| Stockholders Equity | 5.90M | 9.50M | -3.30M | -16.30M | -32.00M | -57.70M |
Cash Flow | ||||||
| Free Cash Flow | 50.10M | 42.70M | 14.70M | 33.00M | 47.80M | 39.00M |
| Operating Cash Flow | 52.60M | 46.60M | 18.10M | 36.40M | 49.80M | 41.40M |
| Investing Cash Flow | -3.10M | -4.50M | -4.40M | -3.50M | 12.30M | 4.40M |
| Financing Cash Flow | -45.30M | -40.90M | -44.00M | -30.90M | -46.10M | -76.90M |
Smiths News PLC Technical Analysis
Positive
58.80
Price Trends
65.82
Positive
65.59
Positive
62.60
Positive
Market Momentum
0.87
Negative
55.98
Neutral
52.48
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 58.8 is below the 20-day moving average (MA) of 65.98, below the 50-day MA of 65.82, and below the 200-day MA of 62.60, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 52.48 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | £507.36M | 18.88 | 12.74% | 3.26% | -9.72% | 6.73% | |
74 Outperform | £161.93M | 6.32 | 350.65% | 9.74% | -5.18% | -2.29% | |
65 Neutral | £7.04B | 22.74 | 9.26% | 2.32% | 0.70% | -22.05% | |
64 Neutral | £266.57M | 8.41 | 3.57% | 0.53% | -8.41% | -51.11% | |
62 Neutral | £166.32M | -1.29 | -21.91% | 11.37% | -3.75% | -346.47% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
GB:SNWS
Smiths News PLC
70.20
18.36
35.41%
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Smiths News PLC Corporate Events
Business Operations and StrategyFinancial Disclosures
Smiths News Wins Decade-Long National Distribution Deal with News UK
Positive
Jun 17, 2026
Smiths News PLC has secured a transformational long-term contract with News UK Ireland, publisher of The Sun, The Times and The Sunday Times, that will make it the exclusive wholesale distributor of these titles across all of Great Britain from J...
Business Operations and StrategyDividendsFinancial Disclosures
Smiths News posts solid first‑half, secures long‑term contracts and accelerates growth verticals
Positive
May 6, 2026
Smiths News reported interim results for the 26 weeks to 28 February 2026 showing a solid trading performance, with revenue down 3.9% to £515.7m in line with print market trends and adjusted operating profit slipping to £18.3m amid highe...
Business Operations and Strategy
Smiths News Secures Long-Term UK Distribution Deal with The Guardian
Positive
Mar 19, 2026
Smiths News PLC, the UK’s largest news wholesaler and a specialist in early morning, end-to-end supply chain services, has built a nationwide high-density delivery network that supports major publishers and over 22,000 retail customers. The ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.