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Smith & Nephew Snats (SNN)
NYSE:SNN
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Smith & Nephew Snats
(NYSE:SNN)
Rating:78Outperform
Price Target:
$41.00
▲(11.11% Upside)
Positive Factors
Financial Performance
SNN delivered a solid Q1 overall, slightly beating consensus and maintaining its guidance through the P&L.
Market Expansion
SNN notes growth in the other emerging markets was much stronger at +14.7%.
Negative Factors
Geopolitical Challenges
China remains a key hurdle in Ortho and Sports Medicine until mid-year when SNN believes Ortho inventory levels should normalize and Sports Med VBP should lap.
US Market Performance
SNN's ability to return the US Ortho segment to market growth by year-end remains a show-me story, and China headwinds continue to persist in multiple areas of the business.
Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.30B
Dividend Yield2.03%
Average Volume (3M)847.80K
Price to Earnings (P/E)33.1
Beta (1Y)0.65
Revenue Growth5.78%
EPS Growth61.52%
CountryUS
Employees17,349
SectorHealthcare
Sector Strength51
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.86
Shares Outstanding435,762,900
10 Day Avg. Volume535,266
30 Day Avg. Volume847,799
Financial Highlights & Ratios
PEG Ratio-1.21
Price to Book (P/B)2.05
Price to Sales (P/S)1.85
P/FCF Ratio17.78
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit3.84
Enterprise Value/Ebitda11.16
Forecast
1Y Price Target
$37.22Price Target Upside0.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Smith & Nephew Snats Business Overview & Revenue Model
Company DescriptionSmith & Nephew Snats (SNN) is a global medical technology company specializing in advanced wound management, orthopedics, and sports medicine. The company focuses on developing and manufacturing innovative products that enhance patient outcomes and improve the quality of care for healthcare professionals. Key product offerings include advanced wound dressings, surgical instruments, and orthopedic implants designed to facilitate faster recovery and reduce complications during medical procedures.
How the Company Makes MoneySmith & Nephew Snats generates revenue through multiple streams, primarily from the sale of medical devices and advanced wound care products. The company has a diverse portfolio that includes high-margin products in its orthopedics and wound management segments, which contribute significantly to overall sales. Additionally, SNN benefits from ongoing partnerships with healthcare providers and institutions, ensuring a steady demand for its products. The company also engages in research and development initiatives to innovate and expand its product lines, further driving revenue growth. Strategic collaborations with hospitals and surgical centers enhance market penetration and access to new customer bases, supporting its earnings potential.
Smith & Nephew Snats Key Performance Indicators (KPIs)
Any
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.
Analyzes revenue contributions from different business units, indicating which segments are leading growth and how diversified the company's income streams are.
Data provided by:
Main Street Data
Main Street DataSmith & Nephew Snats Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.97B | 5.81B | 5.55B | 5.21B | 5.21B | 4.56B |
| Gross Profit | 4.18B | 4.05B | 3.82B | 3.67B | 3.67B | 3.16B |
| EBITDA | 1.44B | 1.24B | 979.00M | 943.00M | 1.24B | 866.00M |
| Net Income | 493.64M | 412.00M | 263.00M | 223.00M | 524.00M | 448.00M |
Balance Sheet | ||||||
| Total Assets | 10.68B | 10.35B | 9.99B | 9.97B | 10.92B | 11.01B |
| Cash, Cash Equivalents and Short-Term Investments | 675.41M | 619.00M | 302.00M | 350.00M | 1.29B | 1.76B |
| Total Debt | 3.45B | 3.32B | 3.08B | 2.87B | 3.34B | 3.69B |
| Total Liabilities | 5.15B | 5.09B | 4.77B | 4.71B | 5.35B | 5.73B |
| Stockholders Equity | 5.53B | 5.26B | 5.22B | 5.26B | 5.57B | 5.28B |
Cash Flow | ||||||
| Free Cash Flow | 799.32M | 606.00M | 181.00M | 110.00M | 469.00M | 492.00M |
| Operating Cash Flow | 1.15B | 987.00M | 608.00M | 468.00M | 877.00M | 935.00M |
| 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 | -645.00M | 1.16B |
Smith & Nephew Snats Technical Analysis
Positive
36.90
Price Trends
32.94
Positive
30.55
Positive
28.19
Positive
Market Momentum
1.31
Positive
64.30
Neutral
62.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNN, the sentiment is Positive. The current price of 36.9 is above the 20-day moving average (MA) of 36.67, above the 50-day MA of 32.94, and above the 200-day MA of 28.19, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 64.30 is Neutral, neither overbought nor oversold. The STOCH value of 62.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $24.14B | 36.69 | 9.73% | 0.94% | 2.47% | 63.68% | |
78 Outperform | $16.30B | 33.13 | 9.20% | 2.03% | 5.78% | 61.52% | |
78 Outperform | $8.27B | 23.65 | 8.62% | ― | 17.43% | 775.48% | |
76 Outperform | $23.93B | 104.97 | 19.18% | ― | 25.99% | -40.46% | |
74 Outperform | $21.02B | 25.57 | 6.52% | 0.91% | 4.11% | -14.43% | |
56 Neutral | $26.11B | ― | -7.10% | 3.27% | -0.76% | -55.03% | |
51 Neutral | $7.86B | -0.33 | -41.57% | 2.23% | 23.26% | -2.03% |
* Healthcare Sector Average
Performance Comparison
SNN
Smith & Nephew Snats
36.90
6.90
23.00%
PODD
Insulet
343.53
131.02
61.65%
PHG
Koninklijke Philips
27.06
-1.84
-6.37%
STE
Steris
242.46
4.43
1.86%
ZBH
Zimmer Biomet Holdings
105.04
-8.39
-7.40%
GMED
Globus Medical
58.80
-11.57
-16.44%
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.