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Smith & Nephew Snats
(NYSE:SNN)
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Rating:72Outperform
Price Target:
$33.00
▲(0.12% Upside)
Action:Upgraded
Date: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
Cash generation
Smith & Nephew has materially improved cash generation: operating cash flow rose to $1.29B and free cash flow to $854M in 2025. Durable FCF supports reinvestment, share buybacks, dividends, and M&A discipline over the medium term and underpins the company's ability to fund RISE strategy and delever over time.
Negative Factors
U.S. reimbursement risk
Regulatory reimbursement changes directly reduce pricing and volumes for a key wound care subcategory, creating a structural margin and revenue headwind. Even if partly offset by cost savings, sustained lower reimbursement compresses returns on that portfolio and forces commercial and product strategy adjustments.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Smith & Nephew has materially improved cash generation: operating cash flow rose to $1.29B and free cash flow to $854M in 2025. Durable FCF supports reinvestment, share buybacks, dividends, and M&A discipline over the medium term and underpins the company's ability to fund RISE strategy and delever over time.
Read all positive factors
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 (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.82B
Dividend Yield2.28%
Average Volume (3M)482.36K
Price to Earnings (P/E)20.8
Beta (1Y)0.51
Revenue Growth6.30%
EPS Growth52.96%
CountryUS
Employees17,818
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.46
Shares Outstanding421,722,080
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 Cap1.21
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda9.83
Forecast
1Y Price Target
$32.32Price Target Upside-1.94% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.21
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 and services in the United Kingdom, the United States, and internationally. The company operates in three segments: Orthopaedics, Sports...
How the Company Makes Money
Smith & Nephew makes money primarily by selling medical devices and consumable healthcare products to hospitals, ambulatory surgery centers, clinics, and distributors. Key revenue streams include: (1) Orthopaedics/Recon—revenue from joint replacem...
Smith & Nephew Snats Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 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
30.22
Negative
31.71
Negative
32.71
Negative
Market Momentum
>-0.01
Negative
46.65
Neutral
74.33
Neutral
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 above the 20-day moving average (MA) of 30.08, above the 50-day MA of 30.22, and above the 200-day MA of 32.71, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $17.67B | 24.31 | 6.01% | 1.05% | 9.23% | -14.66% | |
72 Outperform | $12.82B | 20.82 | 11.79% | 2.28% | 6.30% | 52.96% | |
71 Outperform | $53.09B | 48.57 | 10.55% | ― | 13.81% | 22.90% | |
68 Neutral | $66.54B | 18.60 | 14.82% | ― | 17.44% | 74.36% | |
68 Neutral | $107.36B | 22.29 | 9.92% | 2.76% | 8.43% | 3.17% | |
67 Neutral | $126.42B | 37.97 | 15.10% | 0.95% | 8.84% | 16.34% | |
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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1.15
4.01%
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42.63
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90.09
13.28
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79.30
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SYK
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311.07
-75.58
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ZBH
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91.03
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Smith & Nephew Snats Corporate Events
Smith & Nephew Plans Block Admission of Shares for Employee Incentive Schemes
Jul 2, 2026
Smith Nephew plc, a U.K.-based medical technology company whose ordinary shares are listed on the London Stock Exchange, reported on 2 July 2026 that it had applied for a block admission of 150,000 ordinary shares of US$0.20 each. The group, whic...
Smith & Nephew Updates Voting Share Capital as of June 30, 2026
Jul 1, 2026
On July 1, 2026, Smith Nephew plc reported that as of June 30, 2026, its total issued share capital comprised 877,733,750 ordinary shares of US$0.20 each, including 32,697,503 shares held in treasury. After excluding treasury stock, the company&#...
Cevian Capital Slightly Lifts Stake in Smith & Nephew
Jun 30, 2026
Cevian Capital II G.P. Limited, acting through its investment funds, modestly increased its stake in Smith Nephew plc on 25 June 2026, according to a disclosure filed with regulators and completed on 29 June 2026. Its aggregate holding rose from ...
Smith & Nephew Discloses Increased Cevian Stake Above 13%
Jun 26, 2026
Smith Nephew disclosed that activist investor Cevian Capital II GP Limited has increased its stake in the company, according to a June 26, 2026 filing with U.S. regulators. The move underscores growing shareholder interest in the UK medical devic...
Cevian Capital Lifts Smith & Nephew Stake to 12.24% Without Triggering New Threshold
Jun 17, 2026
On June 17, 2026, Smith Nephew disclosed that activist investor Cevian Capital II G.P. Limited slightly increased its stake in the company, according to a major holdings notification filed with U.S. regulators. As of June 12, 2026, Cevian’s...
Cevian Capital Lifts Smith & Nephew Stake Above 12% in June 2026
Jun 11, 2026
On 8 June 2026, activist investor Cevian Capital II GP Limited increased its indirect holding in Smith Nephew to 12.07% of the company’s voting rights, up from 11.18%, according to a major holdings notification filed with regulators. The st...
Smith & Nephew Executives Reinvest 2025 Final Dividend Into ADS Purchases
Jun 4, 2026
On 3 June 2026, Smith Nephew disclosed that its chief executive and several senior managers acquired American Depositary Shares through the company’s Employee Stock Purchase Plan. The purchases, executed on the New York Stock Exchange at ab...
Smith & Nephew Executives Reinvest 2025 Final Dividend into Company Shares
Jun 3, 2026
Smith Nephew plc reported that several senior executives acquired ordinary shares under its Dividend Re-Investment Plan following the 2025 final dividend payment on 27 May 2026. The purchases, made on the London Stock Exchange, involved ordinary ...
Smith & Nephew Lists €500m Long-Dated Notes on London Stock Exchange
Jun 3, 2026
On 3 June 2026, Smith Nephew plc announced that EUR 500 million of 4.250% notes due 3 June 2038 have been admitted to trading on the Main Market of the London Stock Exchange. The notes were issued under the company’s US$5 billion Euro Mediu...
Smith & Nephew Updates Share Capital and Voting Rights as of 31 May 2026
Jun 1, 2026
On 1 June 2026, Smith Nephew disclosed that as of 31 May 2026 its total issued share capital comprised 877,733,750 ordinary shares of US$0.20 each, including 27,524,042 shares held in treasury. After excluding treasury stock, the company’s ...
Smith & Nephew Admits Additional Shares From Employee Schemes to London Market
May 22, 2026
On May 22, 2026, Smith Nephew plc reported the admission to trading of an additional 8,905 ordinary shares of USD 0.20 each on the Main Market of the London Stock Exchange. These new shares, fully fungible with existing stock, were issued between...
Smith & Nephew Discloses Executive Share Vesting Under Global Plan
May 20, 2026
On 19 May 2026, Smith Nephew plc reported the vesting of conditional share awards granted under its Global Share Plan 2020, in line with UK Market Abuse Regulation disclosure requirements. The transaction involved US$0.20 ordinary shares listed o...
Cevian Capital Lifts Smith & Nephew Stake to Just Over 11%
May 19, 2026
On May 19, 2026, Smith Nephew disclosed that activist investor Cevian Capital II GP Limited had slightly increased its stake in the company, as reported in a regulatory filing to U.S. authorities. The filing shows that, as of May 14, 2026, Cevian...
Cevian Capital Lifts Smith & Nephew Stake Above 11%
May 14, 2026
On 11 May 2026, activist investor Cevian Capital II GP Limited increased its stake in Smith Nephew plc, crossing a key disclosure threshold in the UK. The holding rose from 10.09% to 11.01% of the company’s voting rights, equivalent to 94,0...
Smith & Nephew Sets Sterling Rate for 2025 Final Dividend Ahead of May 27 Payout
May 12, 2026
Smith Nephew plc has confirmed the sterling equivalent of its previously announced final dividend for the year ended 31 December 2025, with a payout of 24.1 US cents per ordinary share to be made on 27 May 2026 to shareholders on the register as ...
Smith+Nephew launches up to $250 million share buyback first tranche
May 8, 2026
On 8 May 2026 Smith+Nephew, the London- and New York-listed medical technology group, announced details of the first tranche of a share buyback programme authorised at its 2026 annual general meeting. The company, which focuses on orthopaedics, sp...
Smith & Nephew AGM Approves All Resolutions Amid Pushback on Pay Plans
May 6, 2026
On 6 May 2026, Smith Nephew reported that all resolutions at its Annual General Meeting were passed by shareholders, including approval of the audited accounts, a final dividend, the re-election and election of all nominated directors, and the re...
Smith & Nephew posts solid Q1 2026 growth and launches $500m buyback
May 6, 2026
On 6 May 2026, Smith Nephew reported first-quarter 2026 revenue of $1.50 billion, up 3.1% on an underlying basis and 6.6% reported, with growth across all business units and regions despite one fewer trading day. Sports Medicine ENT led performa...
Smith & Nephew Holds Guidance, Unveils $500 Million Buyback on Solid Q1 2026 Trading
May 6, 2026
Smith Nephew reported first-quarter 2026 revenue of $1,501 million, up 3.1% on an underlying basis and 6.6% on a reported basis, aided by a foreign exchange tailwind and despite one fewer trading day versus 2025. Growth was broad-based across bus...
Smith & Nephew Updates Voting Share Capital and FCA Disclosure Benchmark
May 1, 2026
On 30 April 2026, Smith Nephew plc reported that its total issued share capital comprised 877,733,750 ordinary shares of US20¢ each, of which 23,684,605 were held in treasury. As a result, the company’s share capital carrying voting ri...
Smith+Nephew to Showcase Growth-Driving Surgical Innovations at June Investor Event
Apr 27, 2026
Smith+Nephew, the London-listed medical technology group, will host an expert surgeon insights event for investors and analysts in London on 9 June 2026, the company said on 27 April 2026. The half‑day session will showcase innovation platfo...
Smith+Nephew Sets 6 May Date for Q1 2026 Trading Update
Apr 22, 2026
Smith+Nephew said on April 22, 2026, that it will publish its trading report for the first quarter ended 28 March 2026 on 6 May 2026 at 7:00 a.m. BST, followed by an analyst conference call at 8:30 a.m. BST. The scheduled update underscores the co...
Smith & Nephew Grants Nil‑Cost RISE Share Plan Awards to Senior Leadership
Apr 16, 2026
On 15 April 2026, Smith Nephew plc granted awards of US$0.20 ordinary shares under its RISE Share Plan, part of the wider Restricted Share Plan 2024, to a group of senior executives classified as persons discharging managerial responsibilities. T...
Smith & Nephew Discloses Board Role Expansion for Senior Independent Director Designate
Apr 15, 2026
On April 15, 2026, Smith Nephew announced that Thérèse Esperdy, its Senior Independent Director designate, will join the board of Rentokil Initial as a Non-Executive Director and Chair-designate from July 1, 2026. She is scheduled to be...
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.