# Smith & Nephew plc (SN.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Healthcare / Health Care Technology. Price 1074p, market value 9.0 billionp.

## Valuation
- **P/E (trailing): 19.9×** (5-yr avg 2781.9×, 3-yr avg 2440.9×). Smith & Nephew plc trades at 19.9× trailing earnings, well below its own five-year average of 2781.9×: cheap by its own standards. The Healthcare median in the September 2026 study was 28.5×. Forward P/E is 12.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.22**. A PEG of 0.22 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Price / book: 2.4×**. The shares trade at 2.4× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.2×**. Enterprise value is 5.2× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.0%** (5-yr avg 0.0%). Free cash flow equals 12.0% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.0%**. The inverse of the P/E: 5.0% of the price is earned each year.

## Profitability
- **Gross margin: 68.8%**. Smith & Nephew plc keeps 68.8% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 13.9%**. 13.9% of revenue is left after running the business.
- **Net margin: 10.1%**. 10.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 12.1%**. 12.1% on shareholders' equity is solid.
- **Return on invested capital: 16.9%**. Return on all capital, debt included, is 16.9%: comfortably above what that capital costs.
- **Return on assets: 10.0%**. Each dollar of assets produces 10.0% of profit.

## Growth
- **Revenue growth (1 yr): 8.3%** (3-yr 6.5%/yr, 5-yr 6.7%/yr). Revenue grew 8.3% over the last year, against 6.7% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 55.3%** (3-yr 42.9%/yr, 5-yr 7.4%/yr). Earnings per share rose 55.3%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 99.2%/yr**. Free cash flow has compounded at 99.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.63**. Debt is 0.63 times equity, moderate leverage.
- **Net debt / EBITDA: 1.0×**. It would take 1.0 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 6.7×**. Operating profit covers interest 6.7× over, a safe margin.
- **Current ratio: 2.57** (quick 1.25). Current assets cover the next year's liabilities 2.57 times.
- **Altman Z-score: 2.95**. A Z-score of 2.95 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 2.76%** (0p per share, trailing). Smith & Nephew plc yields 2.76%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 53%** (46% of free cash flow). 53% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -0.7%/yr** (1-yr -2.9%). The dividend has not grown over five years.
- **Shareholder yield: 6.9%**. Dividends plus net buybacks return 6.9% of the market value a year.

## Analyst view
- **Analyst consensus: hold** (17 analysts). 17 analysts cover Smith & Nephew plc; the consensus is hold, with an average price target of 1269p (+18% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -26.4%** (YTD -15.9%, 3-mo -8.5%). The shares are down 26.4% over twelve months including dividends.
- **From 52-week high: -25.5%** (3.1% above the low). Trading 25% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 37**. An RSI of 37 is neutral.
- **Beta (1 yr): 0.44** (volatility 26%). Beta of 0.44 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SN.L · Page: https://foliofundamentals.com/stocks/sn.l

Not investment advice.