Smith & Nephew Snats (SNN)
NYSE:SNN
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Smith & Nephew Snats
(NYSE:SNN)
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Rating:72Outperform
Price Target:
$32.00
â–¼(-2.91% Downside)
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
Margin expansion & improved profitability
Sustained margin expansion reflects structural improvements: healthier gross margins and operating leverage from productivity programs. Higher operating and net margins support reinvestment in R&D, M&A and dividends, and provide a buffer against cyclical procedure volatility over the medium term.
Negative Factors
Persistent leverage limits flexibility
Moderate but persistent leverage constrains balance-sheet optionality. With adjusted leverage near targeted ranges, the company has less headroom for large acquisitions or aggressive buybacks if margins or cash flow weaken, and must prioritize deleveraging or maintain tight capital allocation discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion & improved profitability
Sustained margin expansion reflects structural improvements: healthier gross margins and operating leverage from productivity programs. Higher operating and net margins support reinvestment in R&D, M&A and dividends, and provide a buffer against cyclical procedure volatility over the medium term.
Read all positive factors
Smith & Nephew Snats (SNN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.68B
Dividend Yield2.28%
Average Volume (3M)482.36K
Price to Earnings (P/E)10.7
Beta (1Y)0.57
Revenue Growth6.30%
EPS Growth52.96%
CountryUS
Employees17,349
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.46
Shares Outstanding427,024,570
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 Cap1.22
Enterprise Value/Revenue2.50
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda9.79
Forecast
1Y Price Target
$32.32Price Target Upside-1.94% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)2.22
Revenue Forecast (FY)$6.58B
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 makes money primarily by selling medical devices and consumable healthcare products to healthcare providers (e.g., hospitals and ambulatory surgery centers). Its revenue is largely generated across three operating segments: (1) Orth...
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
Positive
32.96
Price Trends
33.73
Positive
33.22
Positive
33.67
Positive
Market Momentum
0.27
Negative
61.34
Neutral
81.73
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 32.96 is above the 20-day moving average (MA) of 32.62, below the 50-day MA of 33.73, and below the 200-day MA of 33.67, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 61.34 is Neutral, neither overbought nor oversold. The STOCH value of 81.73 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $12.68B | 10.75 | 11.79% | 2.28% | 6.30% | 52.96% | |
72 Outperform | $46.04B | 30.46 | 10.55% | ― | 13.81% | 22.90% | |
67 Neutral | $80.16B | 17.42 | 14.82% | ― | 17.44% | 74.36% | |
67 Neutral | $97.77B | 28.29 | 9.54% | 2.76% | 6.88% | 9.06% | |
65 Neutral | $15.93B | 18.51 | 5.78% | 1.05% | 9.23% | -14.66% | |
63 Neutral | $109.33B | 42.22 | 15.22% | 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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1.46
5.27%
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Smith & Nephew Snats Corporate Events
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...
Smith & Nephew Grants New Executive Share Awards and Tightens Governance Under Long-Term Incentive Plans
Apr 2, 2026
On 1 April 2026, Smith Nephew granted deferred share bonus awards to Chief Executive Officer Deepak Nath and Chief Financial Officer John Rogers, deferring half of their 2025 annual bonuses into share awards that are scheduled to vest on 15 March...
Smith & Nephew Updates Share Capital and Voting Rights as of 31 March 2026
Apr 1, 2026
Smith Nephew plc reported its voting rights and capital structure as of 31 March 2026, in line with UK Financial Conduct Authority transparency rules. The company disclosed a total issued share capital of 877,733,750 ordinary shares of US20¢...
Smith & Nephew Discloses Executive Share Vesting and Sales for Tax on 23 March 2026
Mar 24, 2026
On 23 March 2026, Smith Nephew plc reported the vesting of 2023 performance share awards under its Global Share Plans 2020 and 2010, with senior executives including CEO Deepak Nath receiving ordinary shares and selling portions to meet tax oblig...
Cevian Doubles Stake in Smith & Nephew to Just Over 10%
Mar 24, 2026
Smith Nephew disclosed on 24 March 2026 that activist investor Cevian Capital II GP Limited has sharply increased its stake in the company, according to a regulatory filing of major holdings. The move underscores growing shareholder engagement ar...
Smith & Nephew Publishes 2025 Annual Report and Calls 2026 AGM
Mar 16, 2026
On 16 March 2026, Smith Nephew plc announced it had published its 2025 Annual Report, the Notice of its 2026 Annual General Meeting (AGM), the related Form of Proxy, and proposed new Articles of Association, marking a key point in its annual gove...
Smith & Nephew Files Form 6-K as 2025 Annual Report Caps Three-Year Turnaround
Mar 16, 2026
On March 16, 2026, Smith Nephew filed a Form 6-K stating that it had distributed its 2025 Annual Report to shareholders, detailing performance for the year ended December 31, 2025. The report highlights $6.16 billion in group revenue, stronger ma...
Smith+Nephew CEO Deepak Nath to Join Reckitt Board as Independent Director
Mar 5, 2026
Smith+Nephew has disclosed that its Chief Executive Officer, Deepak Nath, will join the board of consumer health and hygiene group Reckitt Benckiser Group as an independent non-executive director from 1 April 2026. The appointment, announced on 5 ...
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...
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.
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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.