Smith & Nephew plc (SN.L) stock analysis

In our weekly check, Smith & Nephew plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 4, red flags: 0.

About Smith & Nephew plc

Smith & Nephew plc is a Healthcare company (Medical - Devices) based in the United Kingdom, listed on LSE as SN.L.

What our checks show for SN.L

Warning signs

• The gross margin fell by 2.4 points, to 68%: costs are rising faster than prices.
• Analysts expect only about 4.3% a year of growth in revenue.
• The stock has fallen as much as 55% from a peak. Would you have held through that?
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 2.06x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.6% a year over the next years.
• Analysts expect the net margin to improve by 6.1 points from today's 10.1%.
• Earnings per share grew 43.6% a year over the last 3 years.
• Net profit grew 42% a year over the last 3 years.
• Free cash flow is 13.8% of revenue: cash for dividends, buybacks or growth.

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Questions

What grade does Smith & Nephew plc (SN.L) have?

In our weekly check, Smith & Nephew plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 4, red flags: 0. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of SN.L stock?

This week's biggest flags for Smith & Nephew plc: Gross margin falling, Weak revenue forecast, Deep past fall. In total 4 of 25 checks show a warning or a red flag.

What does Smith & Nephew plc do?

Smith & Nephew plc is a Healthcare company (Medical - Devices) based in the United Kingdom, listed on LSE as SN.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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