Smith & Nephew Snats (SNN)
NYSE:SNN
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Smith & Nephew Snats
(NYSE:SNN)
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Rating:72Outperform
Price Target:
$40.00
â–²(21.36% Upside)
Action:UpgradedDate:03/05/26
The score is driven primarily by improving financial performance (margin and cash flow rebound) and supportive technicals (price above major moving averages with positive momentum). Valuation is only average at a 22.7 P/E, while the earnings call adds confidence via upbeat 2026 growth/profit guidance but flags meaningful near-term tariff and reimbursement headwinds.
Positive Factors
Free cash flow generation
Strengthening operating cash flow and FCF over the last two years demonstrates durable cash conversion and internal funding capacity. This supports disciplined capital allocation (buybacks, dividends, targeted M&A), funds R&D/launches, and reduces reliance on external financing during multi-year execution of strategy.
Negative Factors
Elevated leverage and limited deleveraging
Moderate but persistent leverage reduces strategic flexibility if growth or margins weaken. With debt roughly flat as equity and operations grow, the company may face constraints on large bolt-on M&A, quicker buybacks, or extraordinary investments without extending maturities or raising costs of capital over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Strengthening operating cash flow and FCF over the last two years demonstrates durable cash conversion and internal funding capacity. This supports disciplined capital allocation (buybacks, dividends, targeted M&A), funds R&D/launches, and reduces reliance on external financing during multi-year execution of strategy.
Read all positive factors
Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.50B
Dividend Yield2.28%
Average Volume (3M)482.36K
Price to Earnings (P/E)22.7
Beta (1Y)0.60
Revenue Growth5.78%
EPS Growth61.52%
CountryUS
Employees17,349
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.18
Shares Outstanding424,944,640
10 Day Avg. Volume593,629
30 Day Avg. Volume482,356
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)2.69
Price to Sales (P/S)2.30
P/FCF Ratio16.65
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit3.86
Enterprise Value/Ebitda10.26
Forecast
1Y Price Target
$34.96Price Target Upside6.05% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)2.23
Revenue Forecast (FY)$6.57B
Smith & Nephew Snats Business Overview & Revenue Model
Company Description
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices worldwide. The company offers knee implant products for knee replacement procedures; hip implants for the reconstruction of hip joints; ...
How the Company Makes Money
Smith & 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. ...
Smith & Nephew Snats Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySmith & Nephew Snats Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution and momentum: double-digit improvement in key profitability and cash metrics for FY2025 (margin expansion, $840M free cash flow, adjusted EPS +21%), broad-based revenue growth across business units, record adoption of CORI robotics, and clear cost-savings progress. Management provided constructive FY2026 guidance (~6% organic revenue growth, ~8% trading profit growth) and a disciplined capital allocation approach including targeted M&A (Integrity) aligned with strategy. Offsetting these positives are significant, but largely manageable, near-term headwinds: China VBP effects (now smaller on top line but still weighing on profit), CMS skin-substitute reimbursement changes (material near-term pressure on that subcategory), tariff and reimbursement impacts, and a one-off $159M portfolio rationalization charge. Overall the positives (growth, margin expansion, cash generation, innovation pipeline and cost savings) materially outweigh the near-term challenges and one-off charges, with a credible plan to offset headwinds and deliver further improvement over the medium term.Positive Updates
Full-Year Revenue Growth
FY2025 revenue of $6.2B, up 5.3% underlying (6.1% reported), ahead of guidance; 2022–2025 revenue CAGR of 5.7%.
Negative Updates
China VBP Headwinds
China Value-Based Procurement (VBP) created a peak FY2025 headwind of ~170 basis points to group growth; Greater China sales fell roughly one-third from ~$210–220M in 2024 to ~$160M in 2025; China expected to be broadly neutral on top-line in 2026 but to reduce profit by ~$15–20M due to AET/ENT VBP.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
FY2025 revenue of $6.2B, up 5.3% underlying (6.1% reported), ahead of guidance; 2022–2025 revenue CAGR of 5.7%.
Read all positive updates
Company Guidance
Smith & Nephew guided 2026 to around 6% organic revenue growth and roughly 8% organic trading profit growth (with trading profit expected to grow ahead of revenue), and advised total trading profit of about $1.3 billion including the Integrity Orthopaedics acquisition (marginally dilutive in 2026, broadly neutral in 2027 and accretive in 2028). Management expects free cash flow of ~ $800 million in 2026, group ROIC >10% excluding Integrity, and finished 2025 with leverage of ~1.7x adjusted net debt/EBITDA (buybacks to be considered subject to a ~2x target), while maintaining a dividend payout ratio of 35–40%. Guidance is phased to a stronger second half (H1 revenue growth ~4.5–5% and H2 ~7.5–8%; profit growth H1 ~5.5–6% and H2 ~9–10%), factors in one fewer trading day in Q1 and one extra in Q4, and assumes headwinds of c.$60m from tariffs (vs $17m in 2025) and $20–40m incremental impact from wound reimbursement that management expects to more than offset via ~ $150m of savings in 2026 plus revenue leverage. The company also reiterated its mid‑term RISE ambitions of 6–7% organic revenue CAGR, 9–10% trading profit CAGR, >$1bn free cash flow in 2028 and 12–13% ROIC by 2028.Smith & Nephew Snats Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.18B | 5.81B | 5.55B | 5.21B | 5.21B |
| Gross Profit | 4.20B | 4.05B | 3.82B | 3.67B | 3.67B |
| EBITDA | 1.58B | 1.24B | 956.00M | 874.00M | 1.24B |
| Net Income | 626.46M | 412.00M | 263.00M | 223.00M | 524.00M |
Balance Sheet | |||||
| Total Assets | 10.46B | 10.35B | 9.99B | 9.97B | 10.92B |
| Cash, Cash Equivalents and Short-Term Investments | 557.00M | 619.00M | 302.00M | 350.00M | 1.29B |
| Total Debt | 3.33B | 3.32B | 3.08B | 2.87B | 3.34B |
| Total Liabilities | 5.17B | 5.09B | 4.77B | 4.71B | 5.35B |
| Stockholders Equity | 5.29B | 5.26B | 5.22B | 5.26B | 5.57B |
Cash Flow | |||||
| Free Cash Flow | 853.99M | 606.00M | 181.00M | 110.00M | 469.00M |
| Operating Cash Flow | 1.29B | 987.00M | 608.00M | 468.00M | 877.00M |
| Investing Cash Flow | -406.95M | -569.00M | -448.00M | -472.00M | -691.00M |
| Financing Cash Flow | -957.23M | -86.00M | -200.00M | -926.00M | -645.00M |
Smith & Nephew Snats Technical Analysis
Negative
32.96
Price Trends
33.75
Negative
33.24
Negative
33.39
Negative
Market Momentum
-0.75
Positive
35.32
Neutral
4.20
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 32.96 is below the 20-day moving average (MA) of 32.97, below the 50-day MA of 33.75, and below the 200-day MA of 33.39, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 4.20 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $46.08B | 46.44 | 10.39% | ― | 0.19% | 65.58% | |
72 Outperform | $13.50B | 22.70 | 11.79% | 2.28% | 5.78% | 61.52% | |
68 Neutral | $102.64B | 48.91 | 12.53% | ― | 21.62% | 54.80% | |
67 Neutral | $111.88B | 28.29 | 9.54% | 2.76% | 5.34% | 13.15% | |
66 Neutral | $125.31B | 41.38 | 15.04% | 0.95% | 10.95% | -18.32% | |
65 Neutral | $17.33B | 25.25 | 5.60% | 1.05% | 5.47% | -23.03% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
SNN
Smith & Nephew Snats
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14.06%
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Smith & Nephew Snats Corporate Events
Smith & Nephew Updates Voting Share Capital and Rights as of 28 February 2026
Mar 2, 2026
As of 28 February 2026, Smith Nephew plc reported total issued share capital of 877,724,845 ordinary shares of US20¢ each, of which 27,835,540 are held in treasury. This leaves 849,889,305 ordinary shares in issue carrying one voting right e...
Smith+Nephew Posts Strong 2025 Results, Completes Transformation and Sets 2026 Growth Targets
Mar 2, 2026
Smith+Nephew reported a strong finish to 2025, with fourth-quarter revenue rising to $1.70 billion and full-year revenue up 6.1% to $6.16 billion for the year ended 31 December 2025, alongside a 20.7% increase in operating profit and a 52.5% jump ...
Smith & Nephew Posts Strong 2025 Results and Unveils Next-Phase Growth Strategy
Mar 2, 2026
On 2 March 2026, Smith Nephew reported its fourth-quarter and full-year 2025 results, showing a solid uplift in performance as revenue for 2025 rose 6.1% to $6.16 billion, trading profit climbed 15.5% to $1.21 billion, and free cash flow surged 5...
Smith+Nephew Sets 2 March 2026 Date for 2025 Full-Year Results
Feb 5, 2026
Smith+Nephew announced that it will publish its full-year results for the year ended 31 December 2025 on 2 March 2026 at 7:00am GMT (2:00am EST), with a follow-up conference call for financial analysts at 8:30am GMT (3:30am EST). The timetable sig...
Smith & Nephew Reports Routine Six-Month Update on Employee Share Schemes
Feb 2, 2026
On 2 February 2026, Smith Nephew filed a six‑monthly block listing return covering the period from 1 August 2025 to 31 January 2026, detailing the status of shares available under several employee share and incentive schemes. Across its Glo...
Smith & Nephew Updates Share Capital and Voting Rights as of 31 January 2026
Feb 2, 2026
As of 31 January 2026, Smith Nephew plc reported a total issued share capital of 877,724,845 ordinary shares of US$0.20 each, of which 27,912,707 are held in treasury. This leaves 849,812,138 ordinary shares carrying one voting right each, a figu...
Smith & Nephew Executives Buy ADS under Employee Stock Purchase Plan
Jan 23, 2026
On 16 January 2026, Smith Nephew plc reported that several senior executives, including Chief Executive Officer Deepak Nath and presidents of Global Orthopaedics, Global Operations and Sports Medicine, purchased American Depositary Shares under t...
Smith+Nephew Closes US$450m Integrity Orthopaedics Deal to Bolster Sports Medicine Portfolio
Jan 21, 2026
On 21 January 2026, Smith+Nephew announced it had completed the acquisition of US-based Integrity Orthopaedics, an early-stage commercial developer of Tendon Seam™, a rotator cuff repair system designed to reduce re-tear rates and improve pa...
Smith+Nephew to Acquire Integrity Orthopaedics to Bolster Shoulder Repair Portfolio
Jan 12, 2026
On 12 January 2026, Smith+Nephew announced the acquisition of US-based Integrity Orthopaedics, an early-stage commercial developer of the Tendon Seam rotator cuff repair system, in a deal worth up to $450 million, including an initial $225 million...
Smith & Nephew Updates Share Capital and Voting Rights as of Year-End 2025
Jan 2, 2026
As of 31 December 2025, Smith Nephew plc reported a total issued share capital of 877,724,845 ordinary shares of US$0.20 each, of which 27,963,140 are held in treasury, leaving 849,761,705 ordinary shares with voting rights. The company stated on...
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, innovati...
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.