Smiths Group (SMGZY) AI Stock Analysis

• Market Cap: $10.19B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.28K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.59
• 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: 323,905,150
• 10 Day Avg. Volume: 3,851
• 30 Day Avg. Volume: 1,283
• 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: 1.09
• 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): 1.61
• Revenue Forecast (FY): $4.20B

• Rating: 70 Neutral
• Price Target: $35.00 ▲(8.70% 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.

Positive Factors

Revenue Growth

Smiths Group's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Generation

Robust cash generation allows Smiths Group to reinvest in R&D and strategic initiatives, enhancing its competitive position and financial stability.

Profitability

Improving profitability reflects efficient operations and cost management, which can sustain long-term financial health and shareholder value.

Negative Factors

Valuation Concerns

A high P/E ratio may indicate that the stock is overvalued, potentially limiting future stock price appreciation and investor returns.

Dividend Yield

A relatively low dividend yield may not attract income-focused investors, potentially impacting the stock's attractiveness in the market.

Lack of Recent Corporate Events

The absence of recent corporate events or strategic announcements may suggest a lack of immediate growth catalysts or strategic shifts.

Smiths Group Business Overview & Revenue Model

Company Description

Smiths Group plc is a global technology company headquartered in the UK, operating across multiple sectors including aerospace, defense, medical technology, and industrial services. The company is known for its innovative solutions in detection, medical devices, and fluid management, providing critical products and services that enhance safety and efficiency in various applications. With a strong emphasis on engineering excellence, Smiths Group serves a diverse range of markets through its specialized divisions, including Smiths Detection, Smiths Medical, and Smiths Interconnect.

How the Company Makes Money

Smiths Group generates revenue through several key streams, primarily by selling high-tech products and services across its divisions. The company earns money from the sale of detection equipment used in security and safety applications, including explosive and narcotic detection systems. Moreover, its medical division provides a variety of devices, including infusion systems and vascular access products, which contribute significantly to its earnings. Smiths Interconnect offers advanced connectivity solutions that serve the aerospace and defense sectors, further diversifying its revenue base. Additionally, the company benefits from long-term contracts and partnerships with governmental and industrial entities, providing a stable income source. The focus on innovation and developing new technologies also plays a vital role in enhancing its competitive edge and revenue potential.

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: Negative
• Last Price: 32.20
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 32.2 is below the 20-day moving average (MA) of 32.34, below the 50-day MA of 32.30, and above the 200-day MA of 29.20, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 42.49 is Neutral, neither overbought nor oversold. The STOCH value of 66.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMGZY.

Smiths Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	79 Outperform	$10.71B	28.84	24.96%	1.27%	2.37%	-6.93%
AOS	77 Outperform	$9.47B	18.37	28.21%	2.03%	-1.64%	-2.50%
CR	70 Outperform	$10.82B	33.93	18.09%	0.49%	-0.37%	21.77%
SMGZY	70 Neutral	$10.19B	28.43	12.77%	1.81%	-4.09%	22.06%
RRX	69 Neutral	$9.67B	37.67	3.89%	0.96%	-4.99%	22.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.53B	30.90	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.