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Smith & Nephew Snats (SNN)
:SNN

Smith & Nephew Snats (SNN) AI Stock Analysis

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SNN

Smith & Nephew Snats

(NYSE:SNN)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$36.00
▼(-1.45% Downside)
Smith & Nephew Snats' strong financial performance and positive earnings call are the main drivers of its stock score. However, bearish technical indicators and a high P/E ratio temper the overall outlook. The company's strategic initiatives, such as the share buyback, reflect confidence in its financial health, but challenges in emerging markets and tariff impacts pose risks.
Positive Factors
Revenue Growth
Consistent revenue growth across all regions and business units indicates strong market demand and effective business strategies, supporting long-term financial health.
Cash Flow Generation
Robust cash flow generation enhances financial flexibility, enabling strategic investments and shareholder returns, which are crucial for sustainable growth.
Product Innovation
Growth in Advanced Wound Management reflects successful product innovation and market adaptation, strengthening competitive positioning in the medical technology sector.
Negative Factors
Emerging Markets Challenges
Declines in emerging markets, particularly China, could limit growth opportunities and revenue diversification, impacting long-term expansion strategies.
Tariff Impacts
Tariff-related costs can erode profit margins and increase operational expenses, posing a risk to financial performance and competitiveness.
Reimbursement Headwinds
Potential changes in reimbursement policies may affect sales and profitability, particularly in Advanced Wound Management, challenging future revenue streams.

Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)

Smith & Nephew Snats Business Overview & Revenue Model

Company DescriptionSmith & Nephew Snats (SNN) is a global medical technology company specializing in advanced wound management, orthopedic reconstruction, and sports medicine. The company operates in three main sectors: Advanced Wound Management, Orthopedics, and Sports Medicine. SNN offers a range of products including wound care dressings, surgical instruments, implants for hip and knee replacements, and minimally invasive surgical solutions for various orthopedic procedures.
How the Company Makes MoneySmith & Nephew Snats generates revenue through the sale of medical devices and products across its key sectors. The company's primary revenue streams include the sale of advanced wound care products, orthopedic implants, and surgical instruments. Revenues are significantly bolstered by ongoing partnerships with hospitals, clinics, and healthcare providers, which facilitate the distribution of their products. Additionally, SNN invests in research and development to innovate and expand its product offerings, which helps to maintain competitive pricing and capture new market segments. The company also benefits from recurring revenue through consumable products that require regular replenishment.

Smith & Nephew Snats Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue contributions from different business units, indicating which segments are leading growth and how diversified the company's income streams are.
Chart InsightsSmith & Nephew's Orthopaedics and Advanced Wound Management segments are experiencing robust growth, with recent earnings highlighting a 5.5% and 10.2% increase respectively. This aligns with strategic improvements and operational efficiencies. However, challenges such as tariff impacts and softness in the U.S. Knee segment could pose risks. The company's strong cash flow and announced $500 million share buyback indicate confidence in sustaining growth, although emerging market declines, particularly in China, remain a concern.
Data provided by:The Fly

Smith & Nephew Snats Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Positive
Smith & Nephew reported strong revenue growth, profitability improvements, and significant cash flow increases, along with a major share buyback announcement. However, challenges remain, particularly in emerging markets, and potential headwinds from U.S. tariffs and reimbursement changes. Overall, the company appears optimistic about sustaining growth and improving margins.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Smith & Nephew reported 6.7% underlying revenue growth in the quarter, with all regions and business units showing acceleration. Revenue in the quarter was $1.6 billion.
Profitability Improvements
The company achieved a 100 basis point expansion in trading margin in the first half and remains on track for a full year margin guidance of 19% to 20%.
Significant Cash Flow Increase
Trading cash flow increased by 70%, resulting in almost $250 million of free cash flow in the first half.
Share Buyback Announcement
Smith & Nephew announced a $500 million share buyback in the second half of 2025, fully funded by 2025 cash flow and existing balances.
Orthopaedics Margin Expansion
Orthopaedics margin expanded by 230 basis points in the first half due to transformation initiatives.
Advanced Wound Management Growth
Advanced Wound Management grew by 10.2% due to a rebound in Bioactives.
Negative Updates
Emerging Markets Decline
Emerging markets declined by 0.2%, with strong growth in the Middle East and India offset by challenges in China.
Impact of U.S. Tariffs
The company expects a net headwind of $15 million to $20 million in 2025 due to U.S. tariffs.
Slower U.S. Knee Growth
U.S. Knees showed slower growth due to surgeon base procedure slowdown and portfolio rationalization efforts.
Potential Headwinds from Skin Substitute Reimbursement
Proposed updates to Medicare reimbursement could pose a headwind to Advanced Wound Management sales and profitability in 2026.
Company Guidance
During the Smith & Nephew second quarter and first half results meeting, CEO Deepak Nath and CFO John Rogers provided detailed guidance on the company's performance and future outlook. The company reported a 6.7% underlying revenue growth in the quarter, with a trading margin expansion of 100 basis points in the first half, slightly ahead of expectations. The full-year margin guidance remains between 19% to 20%, despite a $15 million to $20 million headwind from tariffs anticipated in 2025. The company also highlighted a 70% increase in trading cash flow and nearly $250 million in free cash flow for the first half. A $500 million share buyback is planned for the second half, funded by 2025 cash flow and existing balances. Geographically, the U.S. market showed an 8.7% growth, while emerging markets experienced a slight decline of 0.2%, mainly due to volume-based procurement impacts in China. The company's Orthopaedics business grew by 5.5%, with significant advancements in the U.S. Recon and Robotics, marking the fourth consecutive quarter of improvement. Sports Medicine and ENT achieved a 5.7% growth, and Advanced Wound Management increased by 10.2%, driven by a rebound in Bioactives. The company remains focused on operational efficiencies, inventory management, and expanding its innovation pipeline to sustain growth and profitability.

Smith & Nephew Snats Financial Statement Overview

Summary
Smith & Nephew Snats demonstrates strong financial health with impressive revenue and profit growth, solid profitability margins, and efficient cash flow management. Despite a slight increase in leverage, the company's balanced capital structure and improved returns to shareholders position it well in the Medical Equipment & Supplies industry.
Income Statement
85
Very Positive
Smith & Nephew Snats has shown consistent revenue growth with a notable increase of 4.7% from 2023 to 2024. The gross profit margin stands strong at 69.6%, highlighting effective cost management. The net profit margin improved significantly from 4.7% in 2023 to 7.1% in 2024, demonstrating enhanced profitability. EBIT and EBITDA margins increased to 11.3% and 21.3% respectively, reflecting operational efficiency improvements.
Balance Sheet
78
Positive
The company maintains a solid equity position with an equity ratio of 50.8% in 2024, indicating a balanced capital structure. However, the debt-to-equity ratio increased slightly to 0.63, suggesting a cautious approach to leverage. ROE improved to 7.8%, signifying better returns to shareholders, driven by increased net income.
Cash Flow
82
Very Positive
Smith & Nephew Snats experienced a robust free cash flow growth of 234.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 2.40 reflects efficient cash management. The free cash flow to net income ratio of 1.47 further supports the company’s strong cash flow position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.97B5.81B5.55B5.21B5.21B4.56B
Gross Profit4.18B4.05B3.82B3.67B3.67B3.16B
EBITDA1.44B1.24B956.00M874.00M1.24B866.00M
Net Income493.64M412.00M263.00M223.00M524.00M448.00M
Balance Sheet
Total Assets10.68B10.35B9.99B9.97B10.92B11.01B
Cash, Cash Equivalents and Short-Term Investments675.41M619.00M302.00M350.00M1.29B1.76B
Total Debt3.45B3.32B3.08B2.87B3.34B3.69B
Total Liabilities5.15B5.09B4.77B4.71B5.35B5.73B
Stockholders Equity5.53B5.26B5.22B5.26B5.57B5.28B
Cash Flow
Free Cash Flow799.32M606.00M181.00M110.00M469.00M492.00M
Operating Cash Flow1.15B987.00M608.00M468.00M877.00M935.00M
Investing Cash Flow-345.22M-569.00M-448.00M-472.00M-691.00M-606.00M
Financing Cash Flow-676.96M-86.00M-200.00M-926.00M-645.00M1.16B

Smith & Nephew Snats Technical Analysis

Technical Analysis Sentiment
Negative
Last Price36.53
Price Trends
50DMA
34.27
Negative
100DMA
35.11
Negative
200DMA
31.78
Positive
Market Momentum
MACD
-0.43
Negative
RSI
42.68
Neutral
STOCH
16.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNN, the sentiment is Negative. The current price of 36.53 is above the 20-day moving average (MA) of 32.85, above the 50-day MA of 34.27, and above the 200-day MA of 31.78, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 16.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNN.

Smith & Nephew Snats Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$125.28B26.409.81%2.76%5.34%13.15%
79
Outperform
$137.79B50.5312.66%21.62%54.80%
79
Outperform
$49.51B36.1213.59%0.19%65.58%
73
Outperform
$18.02B22.506.41%1.05%5.47%-23.03%
70
Outperform
$134.49B46.1814.04%0.95%10.95%-18.32%
69
Neutral
$13.68B28.589.20%2.31%5.78%61.52%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNN
Smith & Nephew Snats
32.54
8.33
34.41%
BSX
Boston Scientific
94.48
5.82
6.56%
EW
Edwards Lifesciences
84.84
10.91
14.76%
MDT
Medtronic
98.30
20.86
26.94%
SYK
Stryker
352.58
-1.35
-0.38%
ZBH
Zimmer Biomet Holdings
91.56
-13.26
-12.65%

Smith & Nephew Snats Corporate Events

Smith+Nephew Unveils RISE Strategy and 2028 Financial Targets
Dec 8, 2025

On December 8, 2025, Smith+Nephew announced its new RISE strategy and financial targets for 2028 at its Capital Markets Day in London. The strategy aims to elevate financial and operational performance, focusing on reaching more patients, innovating product offerings, scaling operations, and executing efficiently. The company updated its 2025 full-year guidance, expecting a trading profit margin of at least 19.5% and free cash flow around $800 million. Smith+Nephew also plans to rationalize its product portfolio, estimating a $200 million non-cash inventory provision in 2025 to simplify offerings and improve capital efficiency. The RISE strategy is expected to deliver significant shareholder value and solidify Smith+Nephew’s leadership in healthcare innovation.

Smith & Nephew Snats Updates Share Capital Structure
Dec 1, 2025

Smith & Nephew Snats, a company listed on the London Stock Exchange, announced that as of November 30, 2025, its total issued share capital consists of 877,724,845 ordinary shares, with 28,000,826 held in treasury. This results in 849,724,019 ordinary shares with voting rights, which shareholders should use as the denominator for determining their interests according to the FCA’s Disclosure Guidance and Transparency Rules.

Smith & Nephew Executives Acquire Shares in Employee Stock Plan
Nov 19, 2025

Smith & Nephew plc announced on November 19, 2025, that key executives participated in the company’s Employee Stock Purchase Plan, acquiring American Depositary Shares through the Dividend Re-Investment Plan after the interim dividend payment on November 7, 2025. This transaction, conducted on the New York Stock Exchange, underscores the company’s commitment to aligning managerial interests with shareholder value, potentially enhancing stakeholder confidence.

Smith & Nephew’s Major Holdings Change with BlackRock
Nov 18, 2025

Smith & Nephew plc, a UK-based company, reported a change in major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc. On November 14, 2025, BlackRock’s voting rights in Smith & Nephew reached a total of 7.17%, with 5.01% attached to shares and 2.16% through financial instruments. This change was officially notified on November 17, 2025.

Smith & Nephew Announces Vesting of CEO’s Restricted Shares
Nov 12, 2025

On November 11, 2025, Smith & Nephew plc announced the vesting of 3,016 restricted shares awarded to CEO Deepak Nath under an agreement from April 2022. A portion of these shares was sold to meet tax obligations, reflecting the company’s adherence to regulatory requirements and impacting its financial disclosures. This transaction, conducted on the London Stock Exchange, underscores the company’s commitment to transparent governance and may influence stakeholder perceptions regarding executive compensation practices.

Smith & Nephew Announces Change in Major Holdings by BlackRock
Nov 12, 2025

On November 10, 2025, Smith & Nephew plc, a UK-based company, reported a change in major holdings due to an acquisition or disposal of voting rights by BlackRock, Inc. The notification revealed that BlackRock’s voting rights in Smith & Nephew decreased slightly from 7.18% to 7.17%, with a total of 60,996,414 voting rights held. This adjustment in holdings reflects a minor shift in BlackRock’s investment position, which could have implications for the company’s influence over Smith & Nephew’s strategic decisions.

Smith & Nephew Executives Participate in Share Purchase Plan Post-Dividend
Nov 10, 2025

On November 7, 2025, Smith & Nephew plc announced the purchase of ordinary shares through its Dividend Re-Investment Plan following the interim dividend payment. This transaction, disclosed under the UK Market Abuse Regulation, involved key executives, including the CEO and presidents of various divisions, purchasing shares at a price of £12.4048 each. This move reflects the company’s commitment to aligning managerial interests with shareholder value, potentially impacting its market position positively.

Smith & Nephew Announces Key ADS Purchase by Executive
Nov 7, 2025

On November 6, 2025, Smith & Nephew plc announced a significant transaction involving the purchase of American Depositary Shares (ADS) by Ajay Dhankhar, the Chief Corporate Strategy & Development Officer, on the New York Stock Exchange. This transaction, disclosed under the UK Market Abuse Regulation, highlights the company’s ongoing strategic activities and could indicate confidence in the company’s future performance, potentially impacting its market positioning and stakeholder interests.

Smith & Nephew Announces ADS Purchase by KAGAMA Family Investments
Nov 7, 2025

Smith & Nephew plc, a company operating in the medical technology industry, announced a transaction involving the purchase of American Depositary Shares (ADS) by KAGAMA Family Investments, LP, which is closely associated with Garheng Kong, an Independent Non-Executive Director. The transaction, which took place on November 6, 2025, at the New York Stock Exchange, involved the purchase of 3,000 ADS at a price of $33.9773 each. This notification is made in compliance with the UK Market Abuse Regulation, reflecting the company’s commitment to transparency in its financial dealings.

Smith+Nephew Appoints Thérèse Esperdy as Senior Independent Director Designate
Nov 6, 2025

Smith+Nephew has announced the appointment of Thérèse Esperdy as an independent Non-Executive Director and Senior Independent Director designate, effective December 1, 2025. Esperdy, who brings extensive experience from her roles in financial services and as a board member of international businesses, will succeed Angie Risley following the company’s AGM in May 2026. This strategic appointment is expected to enhance the company’s governance and strengthen its board with Esperdy’s expertise, particularly in highly regulated industries.

Smith & Nephew Reports Strong Q3 2025 Growth and Raises Cash Flow Guidance
Nov 6, 2025

Smith & Nephew reported a 5.0% underlying revenue growth in the third quarter of 2025, with total revenue reaching $1,501 million. The company highlighted strong performance in its orthopaedics, sports medicine, and advanced wound management divisions, driven by new product launches and strategic initiatives. The company maintained its full-year revenue and profit margin outlook while raising its free cash flow guidance to $750 million, reflecting improved operational efficiency. A $500 million share buyback was completed, showcasing robust cash generation. Smith & Nephew’s strategic focus on innovation and product launches continues to bolster its market position and drive growth.

Smith & Nephew Reports Strong Q3 2025 Growth and Raises Cash Flow Guidance
Nov 6, 2025

Smith & Nephew reported a 5.0% underlying revenue growth in the third quarter of 2025, with a total revenue of $1,501 million, driven by strong performance in orthopaedics, sports medicine, and advanced wound management. The company has completed a $500 million share buyback and raised its free cash flow guidance to $750 million, reflecting robust cash generation and operational efficiency. New product launches, such as the CORIOGRAPH Pre-Op Planning and Modeling Services and the CENTRIO PRP System, have contributed significantly to revenue growth, supporting the company’s strategic goals and enhancing its market position.

Smith & Nephew Updates Share Capital and Voting Rights
Nov 3, 2025

On October 31, 2025, Smith & Nephew plc reported its total issued share capital, comprising 877,724,845 ordinary shares, with 29,017,524 held in treasury. This results in 848,707,321 shares with voting rights, a crucial figure for shareholders under the FCA’s Disclosure Guidance and Transparency Rules. This announcement ensures transparency and aids stakeholders in understanding their voting power and obligations.

BlackRock Increases Stake in Smith & Nephew
Oct 23, 2025

On October 22, 2025, BlackRock, Inc. crossed a significant threshold in its voting rights in Smith & Nephew, reaching a total of 7.18%. This change in holdings, notified on October 23, 2025, reflects a slight increase from their previous position and could impact Smith & Nephew’s shareholder dynamics and influence within the company.

Smith & Nephew Confirms Interim Dividend Payment for November 2025
Oct 22, 2025

Smith & Nephew plc, a global medical technology company, announced that an interim dividend of 15.0 US cents per ordinary share will be paid on November 7, 2025. Shareholders in the UK or those who opted for sterling dividends will receive 11.26 pence per share. This announcement, initially made on August 5, 2025, reflects the company’s ongoing commitment to returning value to its shareholders.

Smith & Nephew Releases Six-Monthly Block Listing Return
Oct 16, 2025

On October 16, 2025, Smith & Nephew plc released its six-monthly block listing return, detailing the status of various share schemes from February 1 to July 31, 2025. The report highlights that the Global Share Plan 2010 saw 206 securities issued, leaving 3,756 unallotted, while the Global Share Plan 2020 issued 5,758 securities, with 403,258 remaining unallotted. Other schemes, such as the Smith & Nephew ShareSave Plan and International ShareSave Plan, reported no new issuances, maintaining their previous balances. This update provides stakeholders with insights into the company’s equity distribution and potential future financial strategies.

BlackRock Adjusts Voting Rights in Smith & Nephew
Oct 14, 2025

On October 13, 2025, BlackRock, Inc., a major shareholder, adjusted its voting rights in Smith & Nephew plc, resulting in a new total of 7.17% of voting rights. This change, notified on October 14, 2025, reflects a slight increase from the previous total of 6.76%, indicating a strategic adjustment in BlackRock’s investment in the company. The adjustment in voting rights could influence Smith & Nephew’s governance and strategic decisions, impacting its market positioning and stakeholder interests.

Smith+Nephew to Host Capital Markets Days in December 2025
Oct 8, 2025

Smith+Nephew announced it will host Capital Markets Days in London and New York on December 8 and 11, 2025, respectively. These events will introduce the company’s new strategy following its 12-Point Plan and provide insights into its innovative portfolio aimed at driving future growth. Led by CEO Deepak Nath, these sessions are significant for institutional investors and analysts, offering a detailed view of the company’s strategic direction and growth potential.

Smith & Nephew Announces Share Capital Update for September 2025
Oct 1, 2025

Smith & Nephew plc, a company listed on the London Stock Exchange, announced its total issued share capital as of September 30, 2025. The company reported that it has 877,724,845 ordinary shares, with 24,102,908 held in treasury, resulting in 853,621,937 shares with voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Smith+Nephew CFO Relocates to US to Strengthen Market Focus
Sep 30, 2025

Smith+Nephew announced that its Chief Financial Officer, John Rogers, will relocate to the United States effective September 29, 2025, to enhance leadership and oversight in the region, which contributes significantly to the company’s revenue. This move aligns with the company’s strategy to focus on the US market, allowing closer collaboration with senior leaders and supporting the execution of business strategies. Rogers’ remuneration will be adjusted to align with US market practices, with changes to his base salary, pension cash allowance, and performance-related awards.

Smith & Nephew Announces Share Sale by Chief Compliance Officer
Sep 9, 2025

On September 8, 2025, Smith & Nephew plc reported the sale of ordinary shares by Alison Parkes, the Chief Compliance Officer, on the London Stock Exchange. This transaction, disclosed in accordance with the UK Market Abuse Regulation, highlights the company’s commitment to transparency in its financial dealings, potentially impacting investor perceptions and market positioning.

Smith & Nephew Announces Share Sale by Executive
Sep 9, 2025

On September 9, 2025, Smith & Nephew announced a transaction involving the sale of ordinary shares by Vasant Padmanabhan, President of Research & Development ENT, who is classified as a Person Discharging Managerial Responsibilities (PDMR). The transaction, conducted outside the trading venue, involved the sale of 17,643 shares at a price of £14.25 each. This announcement is made in compliance with the UK Market Abuse Regulation, highlighting the company’s commitment to transparency in its financial dealings.

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.Date of analysis: Nov 07, 2025