Education
About Us
Working with TipRanks
Follow Us
Smith & Nephew Snats (SNN)
NYSE:SNN
Top Page
Smith & Nephew Snats
(NYSE:SNN)
Rating:80Outperform
Price Target:
$35.00
▲(16.05%Upside)
Positive Factors
Earnings
SNN delivered a solid Q1 overall, slightly beating consensus and maintaining its guidance through the P&L.
Emerging Markets
SNN reported growth in other emerging markets at +14.7%, showing strong performance outside of China.
Negative Factors
China Market 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 Tariffs Impact
SNN anticipates a $15-$20M impact from potential US tariffs but expects to absorb this range into its current guidance.
Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.36B
Dividend Yield3.02%
Average Volume (3M)794.68K
Price to Earnings (P/E)32.4
Beta (1Y)0.65
Revenue Growth4.58%
EPS Growth55.99%
CountryUS
Employees17,349
SectorHealthcare
Sector Strength47
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.94
Shares Outstanding437,978,500
10 Day Avg. Volume1,045,470
30 Day Avg. Volume794,683
Financial Highlights & Ratios
PEG Ratio-1.81
Price to Book (P/B)4.47
Price to Sales (P/S)0.00
P/FCF Ratio213.92
Enterprise Value/Market Cap1.95
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit6.44
Enterprise Value/Ebitda7.64
Forecast
1Y Price Target
$28.63Price Target Upside-5.07% Downside
Rating ConsensusHold
Number of Analyst Covering2
Smith & Nephew Snats Business Overview & Revenue Model
Company DescriptionSmith & Nephew is a global medical technology company headquartered in the United Kingdom, operating in the healthcare sector. The company specializes in developing, manufacturing, and marketing advanced medical devices with a focus on orthopedics, wound management, and sports medicine. Smith & Nephew's core products include joint reconstruction implants, trauma fixation devices, surgical robotics, and wound care solutions, serving healthcare professionals and patients worldwide.
How the Company Makes MoneySmith & Nephew generates revenue primarily through the sale of its medical devices and technologies. The company's revenue model is driven by key segments: Orthopedics, which includes hip and knee implants as well as trauma and extremities products; Sports Medicine & ENT, offering products for minimally invasive surgery of the joints and ears, nose, and throat; and Advanced Wound Management, providing solutions for wound care and infection prevention. Revenue streams are bolstered by strategic partnerships with healthcare providers, hospitals, and distributors, as well as investments in research and development to drive innovation. Additionally, Smith & Nephew's global presence allows it to capitalize on diverse markets, leveraging its extensive sales network to reach customers in over 100 countries.
Smith & Nephew Snats Earnings Call Summary
Earnings Call Date:Feb 25, 2025
(Q4-2024)
| % Change Since: 16.58%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong growth in key areas, successful execution of strategic plans, and innovation leading to significant revenue contributions. While challenges persist in the China market and in managing R&D investments and cost pressures in Orthopedics, the overall outlook remains optimistic with anticipated improvements in 2025.Q4-2024 Updates
Positive Updates
Strong Year-End Performance
Q4 2024 saw an 8.3% underlying revenue growth with particularly strong performance in the US at 11.9% growth.
Successful Execution of 12-Point Plan
The 12-Point Plan is driving operational improvements, product innovation, and financial outcomes with 60 basis points of margin expansion and 95% cash conversion in 2024.
Record Installations of CORI Robotics
CORI robotic systems exceeded 1,000 global installations by year-end, with a record number of new placements in Q4 2024.
Advanced Wound Management Growth
The Advanced Wound Management segment delivered 12.2% growth in Q4, driven by bioactives and devices.
Innovation Driving Revenue
Over 60% of revenue growth in 2024 came from products launched in the last five years.
Negative Updates
China Market Challenges
China posed a headwind, costing 280 basis points of group growth in Q4, with continued headwinds expected in 2025.
Joint Repair and Sports Medicine VBP Impact
Volume-based procurement (VBP) in China impacted Joint Repair, with a more than 10 percentage point headwind, and similar effects expected for Arthroscopic Enabling Technologies (AET) in 2025.
R&D Spending Concerns
Despite plans for continued innovation, R&D spending was slightly lower than expected due to efficiency savings.
Orthopedics Margin Pressure
Orthopedics segment faced margin pressure due to input cost inflation, merit increases, and China VBP pricing.
Company Guidance
In the Q4 and full year 2024 results presentation, Smith & Nephew's CEO, Deepak Nath, and CFO, John Rogers, provided detailed guidance for 2025. They reported an 8.3% underlying growth in Q4 and a 60 basis points margin expansion for the year. The company achieved 95% cash conversion and a 1.4% increase in ROIC. For 2025, Smith & Nephew expects around 5% revenue growth and a significant trading margin expansion to between 19% and 20%. The margin growth will be driven by continued operating leverage and cost savings from optimizing the manufacturing network. The guidance also accounts for potential headwinds from China, which cost the company 280 basis points of group growth in Q4 2024. Despite these challenges, the company remains confident in its outlook, emphasizing a commitment to innovation and operational improvements under its 12-Point Plan.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.81B | 5.55B | 5.21B | 5.21B | 4.56B |
| Gross Profit | 4.05B | 3.82B | 3.67B | 3.67B | 3.16B |
| EBITDA | 1.24B | 979.00M | 943.00M | 1.24B | 866.00M |
| Net Income | 412.00M | 263.00M | 223.00M | 524.00M | 448.00M |
Balance Sheet | |||||
| Total Assets | 10.35B | 9.99B | 9.97B | 10.92B | 11.01B |
| Cash, Cash Equivalents and Short-Term Investments | 619.00M | 302.00M | 350.00M | 1.29B | 1.76B |
| Total Debt | 3.32B | 3.08B | 2.87B | 3.34B | 3.69B |
| Total Liabilities | 5.09B | 4.77B | 4.71B | 5.35B | 5.73B |
| Stockholders Equity | 5.26B | 5.22B | 5.26B | 5.57B | 5.28B |
Cash Flow | |||||
| Free Cash Flow | 606.00M | 181.00M | 110.00M | 469.00M | 492.00M |
| Operating Cash Flow | 987.00M | 608.00M | 468.00M | 877.00M | 935.00M |
| Investing Cash Flow | -569.00M | -448.00M | -472.00M | -691.00M | -606.00M |
| Financing Cash Flow | -86.00M | -200.00M | -926.00M | -645.00M | 1.16B |
Smith & Nephew Snats Technical Analysis
Positive
30.16
Price Trends
28.85
Positive
27.98
Positive
27.10
Positive
Market Momentum
0.40
Negative
58.74
Neutral
86.69
Negative
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 30.16 is above the 20-day moving average (MA) of 29.77, above the 50-day MA of 28.85, and above the 200-day MA of 27.10, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 86.69 is Negative, 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 (46)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $13.36B | 32.42 | 7.82% | 3.02% | 4.58% | 55.99% | |
80 Outperform | $23.87B | 38.24 | 9.46% | 0.95% | 0.32% | 64.36% | |
76 Outperform | $21.11B | 53.99 | 37.92% | ― | 23.49% | 71.25% | |
74 Outperform | $8.15B | 45.31 | 4.63% | ― | 32.26% | 112.87% | |
69 Neutral | $18.61B | 20.84 | 7.31% | 1.05% | 3.30% | -2.39% | |
51 Neutral | $23.17B | ― | -7.10% | 3.66% | -0.76% | -55.03% | |
46 Neutral | C$192.85M | -4.28 | -8.56% | 2.83% | 13.52% | -1.74% |
* Healthcare Sector Average
Performance Comparison
SNN
Smith & Nephew Snats
30.16
5.65
23.05%
PODD
Insulet
301.62
104.90
53.32%
PHG
Koninklijke Philips
24.52
-0.73
-2.89%
STE
Steris
238.25
23.02
10.70%
ZBH
Zimmer Biomet Holdings
93.50
-12.10
-11.46%
GMED
Globus Medical
60.57
-8.05
-11.73%
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.