Smiths News plc
Smiths News plc Fundamental Analysis
Smiths News plc (SMWPY) shows weak financial fundamentals with a PE ratio of 1.34, profit margin of 2.66%, and ROE of 7.44%. The company generates $1.1B in annual revenue with weak year-over-year growth of 1.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SMWPY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSMWPY demonstrates superior asset utilization.
Valuation Score
ExcellentSMWPY trades at attractive valuation levels.
Growth Score
WeakSMWPY faces weak or negative growth trends.
Financial Health Score
WeakSMWPY carries high financial risk with limited liquidity.
Profitability Score
WeakSMWPY struggles to sustain strong margins.
Key Financial Metrics
Is SMWPY Expensive or Cheap?
P/E Ratio
SMWPY trades at 1.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SMWPY's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values Smiths News plc at 3.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 0.26 times EBITDA. This is generally considered low.
How Well Does SMWPY Make Money?
Net Profit Margin
For every $100 in sales, Smiths News plc keeps $2.66 as profit after all expenses.
Operating Margin
Core operations generate 3.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.44 in profit for every $100 of shareholder equity.
ROA
Smiths News plc generates $16.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smiths News plc generates limited operating cash flow of $46.76M, signaling weaker underlying cash strength.
Free Cash Flow
Smiths News plc produces free cash flow of $42.79M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.57 in free cash annually.
FCF Yield
SMWPY converts 1.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.94
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
7.44
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
1.03
vs 25 benchmark
How SMWPY Stacks Against Its Sector Peers
| Metric | SMWPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.34 | 22.91 | Better (Cheaper) |
| ROE | 743.56% | 1005.00% | Weak |
| Net Margin | 2.66% | -60132.00% (disorted) | Weak |
| Debt/Equity | 3.39 | 1.28 | Weak (High Leverage) |
| Current Ratio | 0.94 | 1.65 | Weak Liquidity |
| ROA | 16.24% | -581836.00% (disorted) | Strong |
SMWPY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smiths News plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-22.90%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
183.01%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
-19.31%
Industry Style: Growth, Technology, Streaming
Declining