Smiths Group (SMGZY) AI Stock Analysis

• Market Cap: $10.23B
• Dividend Yield: 1.82%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.60
• Revenue Growth: 8.47%
• EPS Growth: 36.10%
• Country: US
• Employees: 15,750
• Sector: Industrials
• Sector Strength: 79
• Industry: Industrial - Machinery
• EPS (TTM): 0.72
• Shares Outstanding: 328,259,300
• 10 Day Avg. Volume: 449
• 30 Day Avg. Volume: 1,474
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 7.85
• Enterprise Value/Ebitda: 15.80
• 1Y Price Target: $33.00
• Price Target Upside: 3.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $33.00 ▲(3.68% Upside)

Smiths Group's stock score is primarily driven by its strong financial performance, which reflects consistent growth and effective cash management. The technical analysis indicates bullish momentum, although the overbought signals suggest caution. The valuation component suggests the stock may be overvalued, slightly tempering the overall score.

Smiths Group Business Overview & Revenue Model

Company Description

Smiths Group plc operates as a technology company serving the medical technology, security and defense, general industrial, energy, and space and aerospace markets worldwide. It operates through John Crane, Smiths Detection, Flex-Tek, Smiths Interconnect, and Smiths Medical divisions. The John Crane division offers mechanical seals, seal support systems, hydrodynamic bearings, packing materials, power transmission couplings, and specialized filtration systems. The Smiths Detection division provides sensors and systems that detect and identify explosives, narcotics, weapons, chemical agents, biohazards, and contraband. The Flex-Tek division offers engineered components that heat and move fluids and gases for the aerospace, medical, industrial, construction, and domestic appliance markets. The Smiths Interconnect division provides specialized electronic and radio frequency board-level and waveguide devices, connectors, cables, test sockets, and sub-systems for applications in the security and defense, medical, general industrial, and space and aerospace markets. The Smiths Medical division offers infusion systems, vascular access, patient airway, and temperature management equipment products; and specialised devices in areas of diagnostic and emergency patient transport. The company was formerly known as Smiths Industries and changed its name to Smiths Group plc in 2000. Smiths Group plc was founded in 1851 and is headquartered in London, the United Kingdom.

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 presents a strong financial profile with consistent revenue growth, stable profitability, and effective cash flow management. The balance sheet shows a good balance between debt and equity, indicating a robust financial health.

Income Statement

Smiths Group has shown consistent growth in revenue and profitability. The gross profit margin is strong, reflecting efficient cost management. The net profit margin has improved steadily, indicating increased profitability. The revenue growth rate is healthy, and both EBIT and EBITDA margins are stable, indicating operational efficiency.

Balance Sheet

The balance sheet is solid with a reasonable debt-to-equity ratio, suggesting manageable leverage. The return on equity is satisfactory, indicating effective use of equity to generate profits. The equity ratio is strong, reflecting a stable financial position with a good proportion of equity financing.

Cash Flow

The company's cash flow is robust, with a steady increase in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash generation from operations. The free cash flow to net income ratio is favorable, highlighting effective cash management.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.13B	3.04B	2.57B	2.41B	2.55B
Gross Profit	1.17B	1.12B	961.00M	915.00M	989.00M
EBITDA	580.00M	580.00M	287.00M	430.00M	337.00M
Net Income	250.00M	231.00M	13.00M	157.00M	67.00M
Balance Sheet
Total Assets	4.23B	4.36B	5.22B	5.34B	5.41B
Cash, Cash Equivalents and Short-Term Investments	459.00M	285.00M	1.06B	405.00M	366.00M
Total Debt	659.00M	654.00M	1.17B	1.50B	1.56B
Total Liabilities	1.98B	1.95B	2.50B	2.91B	3.02B
Stockholders Equity	2.23B	2.38B	2.70B	2.40B	2.37B
Cash Flow
Free Cash Flow	332.00M	212.00M	191.00M	418.00M	319.00M
Operating Cash Flow	418.00M	293.00M	279.00M	535.00M	429.00M
Investing Cash Flow	39.00M	-108.00M	1.25B	-205.00M	-144.00M
Financing Cash Flow	-269.00M	-945.00M	-985.00M	-239.00M	-188.00M

Smiths Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMGZY, the sentiment is Positive. The current price of 31.83 is above the 20-day moving average (MA) of 31.52, above the 50-day MA of 31.12, and above the 200-day MA of 26.23, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 57.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMGZY.

Smiths Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	79 Outperform	$13.28B	26.76	20.17%	0.79%	6.69%	21.44%
GNRC	77 Outperform	$10.87B	30.77	14.59%	―	9.69%	54.29%
AOS	76 Outperform	$9.99B	19.88	27.60%	1.91%	-3.53%	-7.46%
CR	72 Outperform	$10.66B	34.96	18.23%	0.48%	3.01%	27.13%
SMGZY	70 Outperform	$10.23B	28.04	14.19%	1.82%	8.47%	36.10%
RRX	67 Neutral	$9.91B	39.70	3.84%	0.94%	-7.88%	―
Sector *	65 Neutral	$2.64B	13.96	15.18%	3.57%	2.94%	43.39%