QualityDipStocks / Health Care · Industrial Specialties
Smith & Nephew SNATS SNN
Outside our quality screen, so we don’t track its dips. It’s 18% below its 52-week high.
Outside our quality screen, trading below our fair value estimate.
- Fair value est.
- $36.08+19%
- Market Value
- —
- Off 52-wk high
- −18%
- Risk vs market
- Lowbeta 0.32
5 bullish · 2 bearish See why
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the low ($26.42, Oct 2) about 0%; today about 3%. The last 3 years delivered 98%/yr (free cash flow).
Dashed line: what the last 3 years delivered, 98%/yr (free cash flow)
| Low | Now | |
|---|---|---|
| Price | $26.42Oct 2 | $30.24 |
| Implied growth | 0% | +3% |
| P/E | 18.5× | 21.1× |
| P/FCF | 13.5× | 15.5× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 5.7% ±2 points. Bear = 10.5% and 3.7%; bull = 8.5% and 7.7% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, SNN’s free cash flow would need to grow about 3% a year for five years; our estimate uses 6%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much SNN moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.3× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.32
- Volatility
- 29% vs 13% SPY
- Correlation SPY
- 0.14
- Correlation QQQ
- −0.02
How it ranks
Where SNN stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 5 measures
- Discount to fair value estimate19% · price below our base caseTop 34%of 1,314
- Free cash flow yield6.5% · free cash flow vs market capTop 27%of 1,391
- Dividends + buybacks yield6.3% · cash paid out or used to retire shares, vs market capTop 18%of 1,836
- Revenue growth, last 12 months+6.1% · vs the 12 months beforeLowest 34%of 1,814
- Operating margin13% · of sales kept as operating profitTop 47%of 1,288
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $36.08 · FCF value $63.10
Assumes 5.7% growth for 5 years (revenue grew 5.7% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $1.95 a share (fiscal year to Dec 31, 2025, 2 shares per ADR), from the 20-F filed Mar 16, 2026. Net debt $2.6B, not deducted.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $36.08, 19% above the price.
ValuationFree-cash-flow yield of 6.5% (price / FCF 15.5×): $852M of free cash in the last 12 months.
ValuationP/E of 21.1× vs a 29.0× median for the 135 Health Care companies we cover.
ProfitabilityOperating margin widened to 12.9% in FY2025 from 7.7% in FY2023 (SEC filings).
Cash returnsFree cash flow grew 41% over the last 12 months vs the 12 months before.
Top bearish points 2 of 5
GrowthSales grew 6.1% over the last 12 months, below the 9.1% median for the 201 Health Care companies we cover.
GrowthSales grew 5.7% a year over the last three fiscal years, below the 11% median for the 199 Health Care companies we cover.
All fundamentals
P/E 21.1 · FCF yield 6.5% · ROE 12%
Valuation
- P/E
- 21.1×Health Care median 29.0×
- Price / FCF
- 15.5×
- FCF yield
- 6.5%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 2.14×
- Price / book
- 2.50×
- Market cap
- $13.2Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $6.2B
- Sales growth, 12 months
- +6.1%vs the 12 months before
- Sales growth, 3 yrs
- +5.7%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.72
- EPS growth, last FY
- +52.3%
- Net income, 12 months
- $625M
- Net income growth
- +52%12 months vs before
Profitability
- Gross margin
- 68.0%
- Operating margin
- 12.9%
- Net margin
- 10.1%
- FCF margin
- 13.8%
- Return on equity
- 12%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $557M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- 5.7×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $852M
- FCF growth, 12 months
- +41%
- Dividend yield
- 2.50%$330M paid
- Payout ratio
- 53%
- Buybacks, 12 months
- $502M3.8% of market cap
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025; balance sheet at Dec 31, 2025. From Smith & Nephew SNATS’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $1.1B · Sales +5%
- Free cash flow, 12 months$1.1B
- Free-cash-flow yield6.5%
- Free-cash-flow margin17%
- Gross margin68%
- Operating margin14%
- Return on invested capital18%
- Return on equity12%
- Sales growth (latest quarter vs year-ago quarter)+5%
- Net debt / EBITDA2.2×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $30.24
- 52-wk lowlowest close, 1 year$26.42−12.6%
- PriceMon Nov 2 close$30.24you are here
- Fair value est.base case$36.08+19.3%
- 52-wk highhighest close, 1 year$37.02+22.4%
Momentum & 52-week range
RSI 62 · 5 days −0.8%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
SNN is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Smith & Nephew SNATS in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Industrial Specialties
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.