# Smiths News plc (SNWS.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 70p, market value 169 millionp.

## Valuation
- **P/E (trailing): 6.3×** (5-yr avg 450.5×, 3-yr avg 507.0×). Smiths News plc trades at 6.3× trailing earnings, well below its own five-year average of 450.5×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 6.7×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.67**. A PEG of 0.67 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 29.0×**. The shares trade at 29.0× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 1.9×**. Enterprise value is 1.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 39.7%** (5-yr avg 0.3%). Free cash flow equals 39.7% of the market value, above its five-year average of 0.3%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 15.8%**. The inverse of the P/E: 15.8% of the price is earned each year.

## Profitability
- **Gross margin: 7.0%**. Smiths News plc keeps 7.0% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 3.8%**. 3.8% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 2.7%**. 2.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 297.9%**. A 297.9% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 180.7%**. Return on all capital, debt included, is 180.7%: comfortably above what that capital costs.
- **Return on assets: 31.3%**. Each dollar of assets produces 31.3% of profit.

## Growth
- **Revenue growth (1 yr): -3.6%** (3-yr -0.8%/yr, 5-yr -1.8%/yr). Revenue fell 3.6% over the last year, against -1.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 10.0%** (3-yr 5.8%/yr, 5-yr 17.5%/yr). Earnings per share rose 10.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -3.7%/yr**. Free cash flow has compounded at -3.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 3.39**. Debt is 3.39 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.2×**. It would take 0.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.0×**. Operating profit covers interest 10.0× over, a safe margin.
- **Current ratio: 0.94** (quick 0.84). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 7.54**. A Z-score of 7.54 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 7.86%** (0p per share, trailing). Smiths News plc yields 7.86%, high enough to check carefully: yields this high often precede a cut.
- **Payout ratio: 61%** (47% of free cash flow). 61% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 48.2%/yr** (1-yr 58.9%). The dividend has compounded at 48.2% a year over five years, doubling roughly every 1 years at that pace.
- **Shareholder yield: 8.0%**. Dividends plus net buybacks return 8.0% of the market value a year.

## Price and momentum
- **Total return (1 yr): 23.6%** (YTD -6.8%, 3-mo 11.0%). The shares are up 23.6% over twelve months including dividends.
- **From 52-week high: -12.2%** (25.8% above the low). Trading 12% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 54**. An RSI of 54 is neutral.
- **Beta (1 yr): 0.46** (volatility 30%). Beta of 0.46 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.