Smiths Group plc
Smiths Group plc Fundamental Analysis
Smiths Group plc (SMGKF) shows weak financial fundamentals with a PE ratio of 31.08, profit margin of 9.95%, and ROE of 13.47%. The company generates $2.8B in annual revenue with moderate year-over-year growth of 3.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMGKF's fundamental strength across five key dimensions:
Efficiency Score
WeakSMGKF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMGKF shows balanced valuation metrics.
Growth Score
ModerateSMGKF shows steady but slowing expansion.
Financial Health Score
ExcellentSMGKF maintains a strong and stable balance sheet.
Profitability Score
WeakSMGKF struggles to sustain strong margins.
Key Financial Metrics
Is SMGKF Expensive or Cheap?
P/E Ratio
SMGKF trades at 31.08 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SMGKF's PEG of -12.43 indicates potential undervaluation.
Price to Book
The market values Smiths Group plc at 4.43 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.21 times EBITDA. This signals the market has high growth expectations.
How Well Does SMGKF Make Money?
Net Profit Margin
For every $100 in sales, Smiths Group plc keeps $9.95 as profit after all expenses.
Operating Margin
Core operations generate 14.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.47 in profit for every $100 of shareholder equity.
ROA
Smiths Group plc generates $7.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smiths Group plc generates limited operating cash flow of $194.20M, signaling weaker underlying cash strength.
Free Cash Flow
Smiths Group plc produces free cash flow of $159.15M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.50 in free cash annually.
FCF Yield
SMGKF converts 1.98% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SMGKF Stacks Against Its Sector Peers
| Metric | SMGKF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.08 | 26.76 | Worse (Expensive) |
| ROE | 13.47% | 1300.00% | Weak |
| Net Margin | 9.95% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.33 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.18 | 10.68 | Strong Liquidity |
| ROA | 7.23% | -1545134.00% (disorted) | Weak |
SMGKF outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smiths Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.62%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
91.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
31.64%
Industry Style: Cyclical, Value, Infrastructure
High Growth