Smiths Group (SMGZY) AI Stock Analysis

• Market Cap: $10.70B
• Dividend Yield: 1.84%
• Average Volume (3M): 5.14K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.57
• Revenue Growth: -4.09%
• EPS Growth: 22.06%
• Country: US
• Employees: 15,750
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.84
• Shares Outstanding: 325,634,300
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 5,140
• PEG Ratio: 2.37
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 2.96
• P/FCF Ratio: 22.49
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 3.44
• Enterprise Value/Gross Profit: 9.25
• Enterprise Value/Ebitda: 18.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.7
• Revenue Forecast (FY): $4.42B

• Rating: 70 Neutral
• Price Target: $35.00 ▲(7.36% Upside)

Smiths Group's overall stock score reflects its strong financial performance and positive earnings call, which highlight robust growth and shareholder returns. However, the high valuation and mixed technical indicators slightly temper the outlook. The company's strategic initiatives and operational efficiency position it well for future growth, despite some market challenges.

Smiths Group Business Overview & Revenue Model

Company Description

Smiths Group plc is a global technology company headquartered in London, specializing in the development and manufacturing of advanced engineering solutions across various sectors, including aerospace, defense, security, and medical technology. The company operates through several divisions, including Smiths Detection, Smiths Medical, Smiths Interconnect, and Smiths Precision Engineering, offering a diverse range of products such as security screening systems, medical devices, and advanced connectivity solutions.

How the Company Makes Money

Smiths Group generates revenue through the sale of its high-tech products and services across its various divisions. Key revenue streams include sales from medical devices, such as infusion systems and vascular access products, which cater to hospitals and healthcare providers. The company's detection division earns revenue from security screening equipment used in airports and other critical infrastructure, while the interconnect division provides specialized connectivity solutions for aerospace and defense applications. Additionally, Smiths Group leverages strategic partnerships with industry leaders and government contracts, particularly in defense and security, to enhance its market presence and drive sales. The company also invests in research and development to innovate and expand its product offerings, further contributing to its revenue growth.

Smiths Group Financial Statement Overview

Summary

Smiths Group demonstrates a balanced financial profile with strong profitability and cash flow metrics. Despite a recent decline in revenue, the company maintains healthy margins and a stable balance sheet. The positive cash flow trends further reinforce its financial stability, positioning it well for future growth opportunities.

Income Statement

Smiths Group has shown a decline in revenue growth with a negative growth rate of -6.93% in the latest year, indicating potential challenges in market demand or competition. However, the company maintains a solid net profit margin of 10.02%, reflecting effective cost management. The EBIT and EBITDA margins are also healthy, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, currently at 0.33, indicating a stable leverage position. The return on equity is strong at 14.34%, showcasing effective use of equity to generate profits. The equity ratio is robust, suggesting a solid financial structure with a good proportion of assets financed by equity.

Cash Flow

Smiths Group has demonstrated strong free cash flow growth of 15.66%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is favorable, showing that the company effectively converts its earnings into cash. The free cash flow to net income ratio is also strong, highlighting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.23B	2.92B	3.13B	3.04B	2.57B	2.41B
Gross Profit	1.20B	410.00M	1.17B	1.12B	961.00M	915.00M
EBITDA	601.00M	535.00M	580.00M	580.00M	287.00M	430.00M
Net Income	307.00M	292.00M	250.00M	231.00M	1.03B	284.00M
Balance Sheet
Total Assets	4.29B	4.01B	4.23B	4.36B	5.22B	5.34B
Cash, Cash Equivalents and Short-Term Investments	392.00M	195.00M	459.00M	285.00M	1.06B	405.00M
Total Debt	675.00M	667.00M	659.00M	654.00M	1.17B	1.50B
Total Liabilities	2.00B	1.95B	1.98B	1.95B	2.50B	2.91B
Stockholders Equity	2.27B	2.04B	2.23B	2.38B	2.70B	2.40B
Cash Flow
Free Cash Flow	362.00M	384.00M	332.00M	212.00M	191.00M	418.00M
Operating Cash Flow	455.00M	456.00M	418.00M	293.00M	279.00M	535.00M
Investing Cash Flow	52.00M	-160.00M	39.00M	-108.00M	1.25B	-205.00M
Financing Cash Flow	-293.00M	-517.00M	-269.00M	-945.00M	-985.00M	-239.00M

Smiths Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.60
• 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 SMGZY, the sentiment is Neutral. The current price of 32.6 is below the 20-day moving average (MA) of 32.65, above the 50-day MA of 31.91, and above the 200-day MA of 28.47, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 21.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMGZY.

Smiths Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	78 Outperform	$9.96B	28.19	24.94%	1.31%	2.92%	-9.78%
CR	75 Outperform	$10.89B	34.15	18.09%	0.47%	-0.37%	21.77%
AOS	70 Outperform	$9.13B	17.71	28.21%	2.08%	-1.64%	-2.50%
SMGZY	70 Neutral	$10.70B	29.54	12.77%	1.84%	-4.09%	22.06%
RRX	69 Neutral	$9.14B	35.60	3.89%	0.99%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.34B	29.27	12.38%	―	5.52%	9.03%

Smiths Group Corporate Events

Smiths Group Reports Strong FY2025 Financial Results

Smiths Group, a leading industrial engineering company, specializes in developing mission-critical products and services for energy, construction, and industrial markets. The company recently reported strong financial results for the fiscal year ending July 2025, surpassing growth guidance and demonstrating robust performance across its operations. Key highlights include an 8.9% organic revenue growth, a 17.4% operating profit margin, and a 14.8% increase in headline EPS. The company also completed significant share buybacks and acquisitions, reflecting disciplined capital allocation.

Smiths Group Reports Strong Growth and Strategic Outlook

The recent earnings call for Smiths Group painted a picture of robust financial health and strategic growth. The company has demonstrated strong financial performance with consecutive years of organic growth and increased shareholder returns. Despite facing challenges such as the impact of a cyber incident on John Crane and a subdued U.S. construction market, Smiths Group’s positive growth in Smiths Detection and Smiths Interconnect, along with operational improvements and strategic plans, provide a promising outlook for the future.