SMITH & NEPHEW PLC

SNN

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.

About the company

Price: $31.28Market Cap: $13.1B

Investment snapshot

24%positive consensus

Scored 1d ago

Positive

BUY / PASS

Neutral / negative

3 / 9

NEUTRAL / FAIL

Median fair value

$7.22

-76.9% vs price

Models with upside

0 / 17

Positive margin of safety

Key risk

No clean pass — all 13 investors flag at least one valuation criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

Metric	Graham Defensive Value	Buffett Quality Compounder	Lynch GARP	Greenblatt Magic Formula	Piotroski F-Score	Dreman Contrarian Value	Munger Quality Focus	Pabrai Dhandho Framework	Akre Three-Legged Stool	Marks Risk-Aware Value	Ackman Activist Value	Templeton Global Bargain Hunter	Sleep Scale Economies Shared	Asness Systematic Factors	Neff Low-P/E Total Return	Schloss Asset-Value Discipline	O'Shaughnessy Systematic Factor Composite
Verdict	FAIL	FAIL	FAIL	Not ranked	NEUTRAL	FAIL	FAIL	FAIL	FAIL	FAIL	PASS	PASS	PASS	BUY	FAIL	NEUTRAL	NEUTRAL
Score
Analysis	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…	Checking access…
Intrinsic Value (annual)		N/A	N/A		N/A		N/A			N/A	N/A		N/A	N/A	N/A	N/A	N/A
Margin of Safety	-217.6%	N/A	N/A	-455.6%	N/A	-321.0%	N/A	-693.9%	-151.6%	N/A	N/A	-345.6%	N/A	N/A	N/A	N/A	N/A
Financial Basis	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Qualitative assessment · Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Market data at 2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Qualitative assessment Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 Latest source filing: 2026-03-16 Score computed: 2026-11-14	Annual history · FY 2025 · Price history 2025-01-01–2026-11-01 Latest source filing: 2026-03-16 Score computed: 2026-11-14

Where It Passes

Where It Falls Short

Valuation0% pass✓ 2✗ 26▾
No clean pass — all 13 investors flag at least one valuation criterion
Net income / market capitalization+4.77%; #1754/6340 (top 27.7%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Price / 3-yr avg EPS63.1x
✗Graham<= 15x
Price-to-Book Ratio5.2x
✗Graham<= 1.5x
P/E x P/B327.60
✗Graham<= 22.5
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
EBIT / Enterprise Value5.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=5.1%, ROC=None
✗GreenblattBoth EY > 10% and ROC > 25%
Price / EPS43.7x
✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
Price / (CFO / Shares)21.4x
✗Dreman< 8x
Price / Book Value per Share5.2x
✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
Valuation ReasonablenessP/E=43.7x
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/E or FCF YieldP/E=43.7x
✗PabraiP/E < 15 or FCF Yield > 10%
P/B or P/E vs. Historical AverageP/E=43.7x, P/B=5.2x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-320.7% (IV=$7.43 vs Price=$31.28)
✗Marks>= 20% below intrinsic value
Price / FCF per Share
✗Ackman<= 25
Price vs. Trailing Low123% of trailing low ($25.38)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Positive book equity / market capitalization+0.4040; #3257/6449 (top 50.5%)
✗AsnessTop 30% of eligible cross-section
Price / Diluted EPS43.7x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E
✗Neff> 0.7 (Neff's published traditional edge)
Price / Tangible Book Value per Share21.14x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+1.0%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Revenue / market capitalization+0.4709; #2712/5247 (top 51.7%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+5.36%; #2136/6202 (top 34.4%)
✗OshaughnessyTop 10% of eligible cross-section
Valuation models0% pass✗ 6▾
SNN overvalued: all 6 models price fair value below $31.28 (median $7.22)
Graham fair value$9.85
✗Graham-217.6% margin vs $31.28
Greenblatt fair value$5.63
✗Greenblatt-455.6% margin vs $31.28
Dreman fair value$7.43
✗Dreman-321.0% margin vs $31.28
Pabrai fair value$3.94
✗Pabrai-693.9% margin vs $31.28
Akre fair value$12.43
✗Akre-151.6% margin vs $31.28
Templeton fair value$7.02
✗Templeton-345.6% margin vs $31.28
Growth13% pass✓ 4✗ 9▾
7 of 8 flag SNN's growth — Graham, Lynch, Dreman +4 more
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
Inventory Growth vs Revenue GrowthInv: -11.3% vs Rev: 6.1%
✓LynchInventory growth < Revenue growth
EPS Growth Direction
✗DremanPositive over recent years
EPS CAGR
✗Dreman> 5% annualized
Positive Net Income Frequency11/11 years positive
✓MarksPositive net income in >= 7 of last 10 years
3yr Median Revenue Growth6.1%
✓Ackman>= 5%
Positive EPS Growth Frequency
✗AckmanPositive EPS growth in >= 3 of last 5 years
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Revenue growth vs. gross and operating margin trendgross margin 68.8% -> 68.0%, operating margin 7.7% -> 12.9%
✓SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR6.2%
✗SleepCAGR > 7%
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Profitability19% pass✓ 12✗ 23▾
13 of 16 flag SNN's profitability — Graham, Buffett, Lynch +10 more
Net income / market capitalization+4.77%; #1754/6340 (top 27.7%)
✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
Positive EPS (10 years)11/12 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)
✗Graham>= 33% growth
Net Income Positive (10+ years)11/12 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)7.7%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)12.9% (latest)
✗BuffettStable or rising over 10 years
Free Cash Flow Proxy
✗BuffettPositive and growing
Earnings Variance (10-yr CoV)
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE11.8%
✗Lynch> 15%
EBIT / Enterprise Value5.1%
✗Greenblatt> 10%
Earnings Yield + ROC AssessmentEY=5.1%, ROC=None
✗GreenblattBoth EY > 10% and ROC > 25%
Net Income / Total Assets5.98%
✓PiotroskiROA > 0
ROA Change YoY3.98% -> 5.98% (delta: +2.00%)
✓PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=12.29%, ROA=5.98%
✓PiotroskiCFO/Assets > ROA
Gross Margin Change YoY69.6% -> 68.0%
✗PiotroskiImproved YoY
Pre-Tax Income / Revenue12.6%
✓Dreman>= 8%
Net Income / Shareholders' Equity11.8%
✗Dreman> 12%
Margin of SafetyP/E=43.7x, P/B=5.2x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity8.2% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value-320.7% (IV=$7.43 vs Price=$31.28)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency11/11 years positive
✓MarksPositive net income in >= 7 of last 10 years
Operating Income / Revenue12.9%
✗Ackman>= 15%
Net Income / Shareholders Equity11.8%
✗Ackman>= 15%
5-Year EPS CAGR
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend7.7% (2023) -> 12.9% (2025)
✓TempletonNon-negative operating-margin trend over 3 years
Revenue growth vs. gross and operating margin trendgross margin 68.8% -> 68.0%, operating margin 7.7% -> 12.9%
✓SleepRevenue rising; gross margin flat or falling; operating margin holding
Gross profit / total assets+40.09%; #952/3702 (top 25.7%)
✓AsnessTop 30% of eligible cross-section
Net income / positive book equity+11.82%; #1545/5226 (top 29.6%)
✓AsnessTop 30% of eligible cross-section
Negative 5-year standard deviation of ROA-0.0138; #1069/5884 (top 18.2%)
✓AsnessTop 30% of eligible cross-section
3-5 Year Diluted EPS CAGR
✗Neff7%-20% annualized
Positive Diluted-EPS Years10/10 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)
Cash Flow20% pass✓ 3✗ 9▾
8 of 10 flag SNN's cash flow — Buffett, Lynch, Dreman +5 more
Free Cash Flow Proxy
✗BuffettPositive and growing
FCF Positive and Growing
✗LynchPositive and growing
Operating Cash Flow$1.3B
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=12.29%, ROA=5.98%
✓PiotroskiCFO/Assets > ROA
Price / (CFO / Shares)21.4x
✗Dreman< 8x
P/E or FCF YieldP/E=43.7x
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive
✗MarksPositive FCF in majority of recent years
(OCF - CapEx) / Market Cap
✗Ackman>= 4%
Price / FCF per Share
✗Ackman<= 25
Positive Operating Cash Flow frequency11/11 years positive
✓SleepPositive OCF in >= 70% of available years
Operating Cash Flow - Capital Expenditures
✗Neff> $0 (app proxy for a strong fundamental case)
(Operating cash flow - capex) / market capitalization
✗OshaughnessyTop 10% of eligible cross-section
Efficiency25% pass✓ 3✗ 8▾
6 of 8 flag SNN's efficiency — Buffett, Greenblatt, Piotroski +3 more
Current Ratio2.57
✓Graham>= 2.0
ROIC (3-5 yr avg)6.0%
✗Buffett> 10%
ROIC - WACC-4.0%
✗BuffettPositive (WACC = 10%)
EBIT / (NWC + Net Fixed Assets)
✗Greenblatt> 25%
Current Ratio Change YoY2.89 -> 2.57
✗PiotroskiIncreased YoY
Revenue / Total Assets Change YoY0.56x -> 0.59x
✓PiotroskiImproved YoY
Current Assets / Current Liabilities2.57
✓Dreman> 1.5
Return on Invested Capital7.5%
✗Munger> 15%
ROIC (high and growing)FY2023: ROIC=4.1%; FY2024: ROIC=6.2%; FY2025: ROIC=7.5%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC3.5% (RR=47% x ROIC=7.5%)
✗AkreReinvestment Rate * ROIC > 10%
ROIC (5-year)0/5 years above 12% (latest 7.5%)
✗SleepROIC > 12% in a majority of years
Verdicts31% pass✓ 4✗ 9▾
Split decision: 9 FAIL · 3 NEUTRAL · 3 PASS · 1 BUY
Overall verdict
✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)✓AsnessBUY (Rank #612/2370 (Top 25.8%))✗NeffFAIL (2/6)•SchlossNEUTRAL (5/7)•OshaughnessyNEUTRAL (Not ranked)
Debt & Leverage42% pass✓ 7✗ 8▾
7 of 12 flag SNN's debt & leverage — Graham, Buffett, Lynch +4 more
LT Debt vs Net Current Assets
✗GrahamLT Debt <= Net Current Assets
Debt/Equity & Interest CoverageD/E: 0.59, IC: 5.7x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.59
✗Lynch< 0.33
Cash - Long-term Debt
✗LynchPositive preferred
LT Debt / Total Assets Change0.00% -> 0.00%
✓PiotroskiDecreased YoY
Current Assets / Current Liabilities2.57
✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders' Equity0.59
✓Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x
Debt Levels0.59
✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
Interest Coverage & Debt/EBITDAIC=5.7x, D/EBITDA=N/A (D&A unavailable)
✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders Equity0.59
✓Ackman<= 1.0
Negative debt-to-equity (higher means less debt)-0.5882; #2639/4210 (top 62.7%)
✗AsnessTop 30% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Medical Equipment

SIC Sector: Measuring & Medical Instruments

Size: Large Cap($13.1B)

Revenue: $6.2B+6.1% YoY

Net Income: $625.0M+51.7% YoY

Financial Snapshot

Operating Margin12.9%

Return on Equity11.8%

Debt / Equity0.59

Current Ratio2.57

EPS (Diluted)$0.72+52.3% 1y

Buybacks (1y)$502.0M

Shares Retired−0.0% / −0.0% 2y

Similar Companies

ALCALCON INC

$35.6B

PHGKONINKLIJKE PHILIPS NV

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WSTWEST PHARMACEUTICAL SERVICES INC

$29.0B

MSAMSA Safety Inc

$6.7B

Shareholder Return

Fiscal 2025

Issued 0.0% of shares last year, 0.0% issued over two.

Buybacks: $502.0M
Dividends: $330.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22

−62.7% = −57.4% + −12.4%

FY23

18.0% = 17.9% + 0.1%

FY24

56.1% = 56.7% + −0.3%

FY25

52.3% = 51.7% + 0.4%

Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

Metric	FY 2025 Sources 20-F · 2026-03-16	FY 2024 Sources 20-F · 2025-03-10	FY 2023 Sources 20-F · 2024-03-11	FY 2022 Sources 20-F · 2023-03-06	FY 2021 Sources 20-F · 2022-03-07
Market Cap	$13.1Bcurrent	$22.3Best.	$23.0Best.	$22.1Best.	$26.5Best.
Revenue	$6.2B↑6%	$5.8B↑5%	$5.5B↑6%	$5.2B	$5.2B
Operating Income	$794.0M↑21%	$657.0M↑55%	$425.0M↓6%	$450.0M↓24%	$593.0M
Net Income	$625.0M↑52%	$412.0M↑57%	$263.0M↑18%	$223.0M↓57%	$524.0M
EPS (Diluted)	$0.72↑52%	$0.47↑56%	$0.30↑18%	$0.26↓63%	$0.68
Gross Margin	68.0%↓2%	69.6%↑1%	68.8%↓2%	70.5%	70.4%
Operating Margin	12.9%↑14%	11.3%↑48%	7.7%↓11%	8.6%↓24%	11.4%
ROE	11.8%↑51%	7.8%↑55%	5.0%↑19%	4.2%↓55%	9.4%
Total Debt	$3.1B	$3.1B↑8%	$2.9B↑8%	$2.7B↓15%	$3.1B
Shareholders' Equity	$5.3B	$5.3B↑1%	$5.2B↓1%	$5.3B↓6%	$5.6B
Current Ratio	2.57↓11%	2.89↑63%	1.77↓21%	2.25↑8%	2.08
Debt / Equity	0.59↓1%	0.59↑7%	0.55↑9%	0.51↓10%	0.56
Operating Cash Flow	$1.3B↑30%	$987.0M↑62%	$608.0M↑30%	$468.0M↓47%	$877.0M
Free Cash Flow	--	--	--	--	--

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Medical Equipment

SNN vs Peers — Financial Grading

Revenue$6.2BTop 25%

Net Income$625.0MTop 25%

ROE11.8%Median

D/E0.59Median

Op. Margin12.9%Median

Curr. Ratio2.57Median

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Greenblatt	Piotroski	Dreman
ALCON INCALC	$35.6B	$74.12	$10.4B	$980.0M	4.4%	0.21	13.1%	2.12	2/9	1/9	3/7	0/3	F-Score 6	4/11
KONINKLIJKE PHILIPS NVPHG	$29.7B	$30.34	$21.0B	$1.1B	8.2%	0.64	8.0%	1.32	1/9	1/9	1/7	0/3	F-Score 5	3/11
WEST PHARMACEUTICAL SERVICES INCWST	$29.0B	$416.42	$3.1B	$493.7M	15.5%	0.06	19.0%	3.02	4/9	6/9	6/7	1/3	F-Score 7	5/11
MSA Safety IncMSA	$6.7B	$174.17	$1.9B	$278.9M	20.4%	0.42	19.8%	3.01	5/9	5/9	4/7	1/3	F-Score 5	7/11
STAAR SURGICAL COSTAA	$1.3B	$26.39	$239.4M	$80.4M	-23.4%	—	-38.3%	4.55	2/9	2/9	2/7	0/3	F-Score 3	3/11
ARTIVION, INC.AORT	$931.9M	$19.10	$441.3M	$9.8M	2.2%	0.48	7.6%	3.53	2/9	0/9	0/7	0/3	F-Score 7	1/11
InMode Ltd.INMD	$763.6M	$13.27	$370.5M	$93.8M	13.7%	—	23.0%	9.88	5/9	3/9	0/7	3/3	F-Score 4	4/11
CERUS CORPCERS	$400.9M	$1.99	$233.8M	$15.6M	-24.3%	1.31	-3.7%	1.73	1/9	1/9	1/7	0/3	F-Score 5	1/11