# Smith & Nephew SNATS (SNN.US)

Canonical: https://gigainvestors.com/s/SNN

Analysis as of: 2026-10-16T07:32:00.815Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $29.09 per share; close as of 2026-10-15.

Estimated value: low $17.74 per share, central $19.98 per share, high $22.96 per share. Buy at or below the central value $19.98 per share. Valuation as of 2026-10-16T07:32:00.815Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.17×

- FY2017: 0.20×

- FY2018: 0.18×

- FY2019: 0.16×

- FY2020: 0.06×

- FY2021: 0.11×

- FY2022: 0.09×

- FY2023: 0.08×

- FY2024: 0.11×

- FY2025: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.2%

- ROIC, second-lowest year: 7.7%

- Typical minus recent gross margin: 2.7 pp

- Typical gross margin (annual median): 71.0%

- Recent gross margin (lower of latest and 3-year median): 68.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.4%

- ROIC including acquisitions, ten-year median: 9.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.8%

- FY2017: 22.9%

- FY2018: 20.1%

- FY2019: 16.0%

- FY2020: 6.9%

- FY2021: 11.5%

- FY2022: 9.0%

- FY2023: 7.7%

- FY2024: 11.0%

- FY2025: 12.9%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 1.37×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.8B

- Net income, five-year total: $2.0B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 1.4 pp

- Working capital / revenue, change between three-year averages: 10.2 pp

- Working capital / revenue, final three-year average: 42.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.30×

- FY2022: 1.85×

- FY2023: 1.38×

- FY2024: 1.42×

- FY2025: 1.22×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 20.1% vs 11.0%

- Per-share earnings: 0.88 to 0.47 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: $1.8B

- Cumulative retained earnings: $1.4B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -7.5%

- Per-share value change: -$0.41

- Per-share value, starting three-year median: $0.88

- Per-share value, ending three-year median: $0.47

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.6%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: $1.4B

- Cumulative net income, 10 years: $5.3B

- ROIC, first three-year median: 20.1%

- ROIC, last three-year median: 11.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.88

- FY2017: $0.88

- FY2018: $0.76

- FY2019: $0.68

- FY2020: $0.51

- FY2021: $0.60

- FY2022: $0.26

- FY2023: $0.30

- FY2024: $0.47

- FY2025: $0.72

### accounting: pass

- Sloan accruals: -6.3%

- Receivables to sales index (DSRI): 1.12×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.3%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.75×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.9%

- FY2017: -4.1%

- FY2018: -3.3%

- FY2019: -6.1%

- FY2020: -4.4%

- FY2021: -3.2%

- FY2022: -2.5%

- FY2023: -3.5%

- FY2024: -5.6%

- FY2025: -6.3%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Aug 2025 · sales +6.1%

Story as of 2026-10-16T09:59:36.472Z; price observation 2026-10-15.

Price needs cash profits to grow 5.9% a year for ten years

### Sales · FY2024–2025

sales +6.1%; source https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm; observed 2026-03-16.

- FY2016: $4.7B 

- FY2017: $4.8B 

- FY2018: $4.9B 

- FY2019: $5.1B 

- FY2020: $4.6B 

- FY2021: $5.2B 

- FY2022: $5.2B 

- FY2023: $5.5B 

- FY2024: $5.8B 

- FY2025: $6.2B 

### Gross margin · FY2025

gross margin 68.3%; source https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm; observed 2026-03-16.

- FY2016: 72.8% 

- FY2017: 73.8% 

- FY2018: 73.5% 

- FY2019: 74.1% 

- FY2020: 69.7% 

- FY2021: 71.0% 

- FY2022: 70.9% 

- FY2023: 70.2% 

- FY2024: 70.2% 

- FY2025: 68.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 6.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm (filed 2026-03-16); FY2025: revenue 6164000000; grossProfit 4207000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNN.US: Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom, the United States, and internationally. The company operates in three segments: Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. It offers knee implant products for knee replacement procedures; hip implants for revision procedures; trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures; and other reconstruction products. The company also provides sports medicine joint repair products comprise instruments, technologies, and implants to perform minimally invasive surgery, as well as treating soft tissue injuries and degenerative conditions of the shoulder, knee, hip, and small joints. In addition, it provides arthroscopic enabling technologies comprising fluid management equipment for surgical access, cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency, electromechanical and mechanical tissue resection devices, and hand instruments for removing damaged tissue; and ear, nose, and throat solutions. Further, the company offers advanced wound care products for the treatment and prevention of acute and chronic wounds, leg, diabetic and pressure ulcers, burns, and post-operative wounds; advanced wound bioactives, such as biologics and other bioactive technologies for debridement and dermal repair/regeneration, and regenerative medicine products, including skin, bone graft, and articular cartilage substitutes; and advanced wound devices, such as traditional and single-use negative pressure wound therapy, and hydrosurgery systems. It serves the healthcare providers. Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.

### Why customers stay

Margins ranged from 68.3% to 70.2% during 2023–25; it earns 12.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: grossProfit / revenue = 70.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: grossProfit / revenue = 70.2%.

- Source: https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm (filed 2026-03-16); FY2025: grossProfit / revenue = 68.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); 10-year return on capital observations [[2016,0.17810904635491115],[2017,0.2293168363548131],[2018,0.2014327070227499],[2019,0.15966585756238233],[2020,0.0689413414349147],[2021,0.11457635818183427],[2022,0.08989921612541993],[2023,0.07697843708463324],[2024,0.11000651055954237],[2025,0.1286678771602267]]; median 0.12162211767103048. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 71% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm (filed 2026-03-16); Gross margin observations: [[2021,0.7095165003837298],[2022,0.7094918504314478],[2023,0.7019282753649306]]; range within 2 percentage points.

### Where the cash goes

Reinvests 1.2% of cash earnings; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2016: growth capex 0; upkeep 320000000; owner earnings 879000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2017: growth capex 0; upkeep 376000000; owner earnings 826000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2018: growth capex 0; upkeep 347000000; owner earnings 743000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2019: growth capex 0; upkeep 408000000; owner earnings 694000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2020: growth capex 0; upkeep 443000000; owner earnings 550000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2021: growth capex 0; upkeep 408000000; owner earnings 679000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2022: growth capex 0; upkeep 358000000; cash acquisitions 112000000; owner earnings 413000000. Growth capex plus acquisitions / owner earnings = 0.2711864406779661.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2023: growth capex 0; upkeep 427000000; cash acquisitions 21000000; owner earnings 363000000. Growth capex plus acquisitions / owner earnings = 0.05785123966942149.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); FY2024: growth capex 0; upkeep 381000000; cash acquisitions 187000000; owner earnings 586000000. Growth capex plus acquisitions / owner earnings = 0.3191126279863481.

- Source: https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm (filed 2026-03-16); FY2025: growth capex 0; upkeep 433000000; cash acquisitions 9000000; owner earnings 765000000. Growth capex plus acquisitions / owner earnings = 0.011764705882352941.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Dividend observations: [[2016,279000000],[2017,269000000],[2018,321000000],[2019,318000000],[2020,328000000],[2021,329000000],[2022,327000000],[2023,327000000],[2024,327000000],[2025,330000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm (filed 2026-03-16); FY2025: cash repurchases 502000000 USD.

### Are managers owners

Insiders own <0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNN.US SharesStats.PercentInsiders = 0.01 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.9% yearly over ten years; actual growth was 3.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-16); Ten-year compound average after fade. Initial solved rate 0.07186415881158303. Price 29.09; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6140155728587319 → FY2025 0.8762886597938144. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $29.25 per share

- 2016-11: $28.47 per share

- 2016-12: $30.08 per share

- 2017-01: $30.38 per share

- 2017-02: $30.55 per share

- 2017-03: $30.93 per share

- 2017-04: $33.24 per share

- 2017-05: $35.21 per share

- 2017-06: $34.85 per share

- 2017-07: $35.25 per share

- 2017-08: $36.40 per share

- 2017-09: $36.40 per share

- 2017-10: $38.26 per share

- 2017-11: $35.84 per share

- 2017-12: $35.01 per share

- 2018-01: $36.53 per share

- 2018-02: $35.47 per share

- 2018-03: $38.15 per share

- 2018-04: $38.87 per share

- 2018-05: $36.46 per share

- 2018-06: $37.53 per share

- 2018-07: $35.11 per share

- 2018-08: $35.83 per share

- 2018-09: $37.09 per share

- 2018-10: $32.88 per share

- 2018-11: $37.26 per share

- 2018-12: $37.38 per share

- 2019-01: $38.06 per share

- 2019-02: $38.64 per share

- 2019-03: $40.11 per share

- 2019-04: $39.05 per share

- 2019-05: $42.27 per share

- 2019-06: $43.54 per share

- 2019-07: $45.44 per share

- 2019-08: $47.96 per share

- 2019-09: $48.13 per share

- 2019-10: $43.22 per share

- 2019-11: $44.78 per share

- 2019-12: $48.07 per share

- 2020-01: $48.01 per share

- 2020-02: $45.08 per share

- 2020-03: $35.87 per share

- 2020-04: $39.67 per share

- 2020-05: $40.81 per share

- 2020-06: $38.12 per share

- 2020-07: $39.81 per share

- 2020-08: $40.65 per share

- 2020-09: $39.10 per share

- 2020-10: $35.07 per share

- 2020-11: $39.35 per share

- 2020-12: $42.17 per share

- 2021-01: $42.26 per share

- 2021-02: $38.85 per share

- 2021-03: $37.90 per share

- 2021-04: $43.17 per share

- 2021-05: $43.52 per share

- 2021-06: $43.44 per share

- 2021-07: $40.93 per share

- 2021-08: $38.34 per share

- 2021-09: $34.34 per share

- 2021-10: $34.75 per share

- 2021-11: $32.15 per share

- 2021-12: $34.62 per share

- 2022-01: $33.86 per share

- 2022-02: $35.64 per share

- 2022-03: $31.90 per share

- 2022-04: $32.40 per share

- 2022-05: $32.73 per share

- 2022-06: $27.92 per share

- 2022-07: $25.85 per share

- 2022-08: $23.84 per share

- 2022-09: $23.22 per share

- 2022-10: $24.09 per share

- 2022-11: $26.52 per share

- 2022-12: $26.89 per share

- 2023-01: $27.80 per share

- 2023-02: $28.57 per share

- 2023-03: $27.91 per share

- 2023-04: $32.70 per share

- 2023-05: $29.90 per share

- 2023-06: $32.25 per share

- 2023-07: $30.38 per share

- 2023-08: $26.94 per share

- 2023-09: $24.77 per share

- 2023-10: $22.24 per share

- 2023-11: $25.95 per share

- 2023-12: $27.28 per share

- 2024-01: $28.03 per share

- 2024-02: $26.51 per share

- 2024-03: $25.36 per share

- 2024-04: $24.13 per share

- 2024-05: $25.33 per share

- 2024-06: $24.78 per share

- 2024-07: $28.78 per share

- 2024-08: $30.85 per share

- 2024-09: $31.14 per share

- 2024-10: $25.09 per share

- 2024-11: $25.78 per share

- 2024-12: $24.58 per share

- 2025-01: $25.38 per share

- 2025-02: $28.96 per share

- 2025-03: $28.37 per share

- 2025-04: $28.02 per share

- 2025-05: $28.96 per share

- 2025-06: $30.63 per share

- 2025-07: $30.56 per share

- 2025-08: $37.45 per share

- 2025-09: $36.29 per share

- 2025-10: $36.82 per share

- 2025-11: $33.28 per share

- 2025-12: $32.81 per share

- 2026-01: $34.14 per share

- 2026-02: $36.90 per share

- 2026-03: $31.78 per share

- 2026-04: $30.93 per share

- 2026-05: $29.69 per share

- 2026-06: $28.81 per share

- 2026-07: $31.56 per share

- 2026-08: $28.76 per share

- 2026-09: $26.96 per share

- 2026-10: $29.09 per share

## Annual estimated value (USD per share)

- FY2016: low $9.24 per share, central $10.98 per share, high $12.78 per share

- FY2017: low $9.64 per share, central $11.35 per share, high $13.19 per share

- FY2018: low $9.80 per share, central $11.38 per share, high $13.19 per share

- FY2019: low $9.90 per share, central $11.24 per share, high $13.02 per share

- FY2020: low $10.52 per share, central $11.70 per share, high $13.28 per share

- FY2021: low $10.11 per share, central $11.32 per share, high $12.93 per share

- FY2022: low $8.79 per share, central $9.96 per share, high $11.52 per share

- FY2023: low $8.60 per share, central $9.75 per share, high $11.29 per share

- FY2024: low $7.89 per share, central $8.89 per share, high $10.24 per share

- FY2025: low $8.28 per share, central $9.35 per share, high $10.78 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 20-F filing](https://www.sec.gov/Archives/edgar/data/845982/000110465926028258/snn-20251231x20f.htm); period 2025-12-31, filed 2026-03-16.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Sarah Ketterer](https://gigainvestors.com/CAU): 1,565,167 SNN shares; USD 45,092,000 reported position value; 0.49% of portfolio; add; quarter 2026 Q2.

# SNN — Smith & Nephew plc

Held by 1 investor · USD 45,092,000 total · 2026 Q2 · reported price USD 28.81 (split-adjusted).
Page: https://gigainvestors.com/s/SNN

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Sarah Ketterer (https://gigainvestors.com/CAU) | USD 45,092,000 | 0.5% | add +64.21% |

## Total held by quarter

- 2024 Q4: USD 11,820,227 · 1 holder · USD 24.58
- 2025 Q1: USD 17,230,718 · 1 holder · USD 28.37
- 2025 Q2: USD 25,147,475 · 1 holder · USD 30.63
- 2025 Q3: USD 20,777,186 · 1 holder · USD 36.29
- 2025 Q4: USD 19,811,072 · 1 holder · USD 32.81
- 2026 Q1: USD 30,290,980 · 1 holder · USD 31.78
- 2026 Q2: USD 45,092,000 · 1 holder · USD 28.81