Smiths Group (SMGZY)
OTHER OTC:SMGZY
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Smiths Group
(OTC:SMGZY)
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Rating:70Neutral
Price Target:
$31.00
▼(-3.73% Downside)
Action:DowngradedDate:10/03/25
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
Strong cash generation & conversion
Consistently high cash conversion and substantial free cash flow provide durable funding for dividends, buybacks, acquisitions and capex. This enhances financial flexibility, supports margin reinvestment and reduces reliance on external financing across medium-term cycles.
Negative Factors
Cyber incident disrupted aftermarket
A cyber incident that impairs aftermarket operations threatens a core recurring revenue stream tied to installed equipment uptime. Remediation and reputational repair can take months, risk contract churn, and reduce long-term service revenues and customer trust if controls aren't strengthened.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conversion
Consistently high cash conversion and substantial free cash flow provide durable funding for dividends, buybacks, acquisitions and capex. This enhances financial flexibility, supports margin reinvestment and reduces reliance on external financing across medium-term cycles.
Read all positive factors
Smiths Group (SMGZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.55B
Dividend Yield1.79%
Average Volume (3M)1.80K
Price to Earnings (P/E)16.3
Beta (1Y)0.64
Revenue Growth-4.09%
EPS Growth22.06%
CountryUS
Employees15,750
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.82
Shares Outstanding306,609,950
10 Day Avg. Volume1,538
30 Day Avg. Volume1,796
Financial Highlights & Ratios
PEG Ratio2.37
Price to Book (P/B)4.24
Price to Sales (P/S)2.96
P/FCF Ratio22.49
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit46.51
Enterprise Value/Ebitda17.80
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.4
Revenue Forecast (FY)$2.62B
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, m...
How the Company Makes Money
Smiths Group makes money mainly by selling engineered products and systems and by providing aftermarket services tied to installed equipment. A major revenue stream comes from Smiths Detection, which sells screening and detection equipment (e.g., ...
Smiths Group Earnings Call Summary
Earnings Call Date:Sep 23, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with consecutive years of organic growth and increased shareholder returns. While there are challenges such as the cyber incident's impact on John Crane and a subdued U.S. construction market, the positive growth in Smiths Detection and Smiths Interconnect, along with operational improvements and strategic plans, provide a robust outlook.Positive Updates
Consistent Organic Revenue Growth
Fiscal year 2025 marks the fourth consecutive year of organic revenue growth, with group organic revenue up 8.9%, surpassing the 6% to 8% guidance.
Negative Updates
Impact of Cyber Incident on John Crane
The cyber incident caused operational challenges, particularly affecting the aftermarket and delaying recovery.
Read all updates
Q4-2025 Updates
Positive
Negative
Consistent Organic Revenue Growth
Fiscal year 2025 marks the fourth consecutive year of organic revenue growth, with group organic revenue up 8.9%, surpassing the 6% to 8% guidance.
Read all positive updates
Company Guidance
In the recent call, Smiths Group exceeded its fiscal year 2025 guidance, achieving an organic revenue growth of 8.9%, surpassing the expected 6% to 8% range. They expanded operating profit margins by 60 basis points to 17.4%, at the top end of the 40 to 60 basis points guidance. The company also marked a 5.1% increase in dividends, continuing a 74-year streak of dividend payments. Smiths executed three accretive acquisitions and progressed the separation of Smiths Interconnect and Smiths Detection, reporting Interconnect as discontinued operations. Looking ahead, the company anticipates 4% to 6% organic revenue growth for fiscal year 2026, with ongoing margin expansion. Earnings per share rose by 14.8%, and the return on capital employed increased by 170 basis points to 18.1%. Smiths also maintained a strong cash conversion rate of 99%, with a free cash flow of GBP 336 million, reflecting their disciplined capital allocation and strategic focus on sustainable growth and shareholder value.Smiths Group Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.20B | 2.92B | 3.13B | 3.04B | 2.57B | 2.41B |
| Gross Profit | 176.18M | 410.00M | 1.17B | 1.12B | 961.00M | 915.00M |
| EBITDA | 460.32M | 535.00M | 580.00M | 580.00M | 287.00M | 430.00M |
| Net Income | 249.16M | 292.00M | 250.00M | 231.00M | 1.03B | 284.00M |
Balance Sheet | ||||||
| Total Assets | 4.14B | 4.01B | 4.23B | 4.36B | 5.22B | 5.34B |
| Cash, Cash Equivalents and Short-Term Investments | 345.00M | 195.00M | 459.00M | 285.00M | 1.06B | 405.00M |
| Total Debt | 1.21B | 667.00M | 659.00M | 654.00M | 1.17B | 1.50B |
| Total Liabilities | 2.46B | 1.95B | 1.98B | 1.95B | 2.50B | 2.91B |
| Stockholders Equity | 1.66B | 2.04B | 2.23B | 2.38B | 2.70B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 92.02M | 384.00M | 332.00M | 212.00M | 191.00M | 418.00M |
| Operating Cash Flow | 120.41M | 456.00M | 418.00M | 293.00M | 279.00M | 535.00M |
| Investing Cash Flow | -32.30M | -160.00M | 39.00M | -108.00M | 1.25B | -205.00M |
| Financing Cash Flow | 87.12M | -517.00M | -269.00M | -945.00M | -985.00M | -239.00M |
Smiths Group Technical Analysis
Negative
32.20
Price Trends
33.99
Negative
33.20
Negative
32.24
Negative
Market Momentum
-1.00
Negative
45.82
Neutral
79.72
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 above the 20-day moving average (MA) of 31.61, below the 50-day MA of 33.99, and below the 200-day MA of 32.24, indicating a bearish trend. The MACD of -1.00 indicates Negative momentum. The RSI at 45.82 is Neutral, neither overbought nor oversold. The STOCH value of 79.72 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.94B | 17.13 | 29.51% | 2.04% | -1.64% | -2.50% | |
70 Neutral | $9.55B | 16.25 | 13.71% | 1.79% | -4.09% | 22.06% | |
67 Neutral | $9.91B | 31.85 | 25.19% | 1.28% | 2.37% | -6.93% | |
65 Neutral | $9.97B | 28.93 | 19.12% | 0.49% | -0.37% | 21.77% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $12.32B | 33.29 | 4.18% | 0.97% | -4.99% | 22.16% | |
60 Neutral | $11.47B | 50.02 | 6.19% | ― | 5.52% | 9.03% |
* Industrials Sector Average
SMGZY
Smiths Group
31.34
10.00
46.84%
DCI
Donaldson Company
85.54
26.53
44.96%
GNRC
Generac Holdings
195.52
84.87
76.70%
RRX
Regal Rexnord
185.33
90.43
95.29%
AOS
A. O. Smith Corporation
64.68
5.26
8.84%
CR
Crane Company
172.73
40.35
30.48%
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.