Upside case
Bull case
$92+203.7%
SNN would need investors to value it at roughly 41x earnings — about 28x more generous than today's 14x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Smith & Nephew plc (SNN) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
22
analysts
6 bullish · 1 bearish · 22 covering SNN
Strong Buy
0
Buy
6
Hold
15
Sell
1
Strong Sell
0
Consensus Target
$32
+5.8% vs today
Scenario Range
$23 – $92
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
13.5x
Forward P/E · Market cap $12.8B
SNN price targets
Three scenarios for where SNN stock could go
Current
~$30
Confidence
43 / 100
Updated
May 1, 2026
Where we are now
Current · $30
Bear
$23
Base
$47
Bull
$92
Market caseClosest to today
Base case
$47+55.4%
At 21x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$23-23.2%
If investor confidence fades or macro conditions deteriorate, a 3x multiple contraction could push SNN down roughly 23% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Smith & Nephew plc
SNN · NYSEHealthcareMedical - DevicesDecember year-end
Smith & Nephew is a global medical device company specializing in orthopedic reconstruction, sports medicine, and advanced wound management. It generates revenue primarily from orthopedic implants (~60% of sales) and sports medicine/arthroscopy products (~25%), with the remainder from advanced wound care and trauma solutions. The company's competitive advantage lies in its established portfolio of minimally invasive surgical technologies and strong surgeon relationships built over decades in key orthopedic markets.
Market Cap
$12.8B
Revenue TTM
$11.6B
Net Income TTM
$799M
Net Margin
6.9%
SNN Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
17%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
-64.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q1 2025
Q3 2025
Q1 2026
Q1 2026
Last 4 Quarters
EPS beats: 2 of 4Q1 2025
EPS
$0.23/$0.92
Revenue
$3.0B/$1.5B
Q3 2025
EPS
$0.67/$0.86
Revenue
$3.0B/$1.5B
Q1 2026
EPS
$1.18/$1.16
Revenue
$3.2B/$2.8B
Q1 2026
EPS
$1.18/$1.16
Revenue
$3.2B/$2.8B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q1 2025 | $0.23/$0.92 | -75.5% | $3.0B/$1.5B | +96.0% |
| Q3 2025 | $0.67/$0.86 | -21.7% | $3.0B/$1.5B | +98.0% |
| Q1 2026 | $1.18/$1.16 | +1.7% | $3.2B/$2.8B | +15.5% |
| Q1 2026 | $1.18/$1.16 | +1.7% | $3.2B/$2.8B | +15.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$11.5B
-1.3% YoY
FY2
$12.2B
+6.1% YoY
EPS Outlook
FY1
$2.04
+12.4% YoY
FY2
$2.24
+9.6% YoY
Trailing FCF (TTM)$1.1B
FCF Margin: 9.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
SNN beat EPS estimates in 2 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
SNN Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $11.6B
Product Mix
Latest annual revenue by segment or product family
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management
50.0%
+4.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Orthopaedics, Sports Medicine and ENT and Advanced Wound Management is the largest disclosed segment at 50.0% of FY 2024 revenue, up 4.7% YoY.
SNN Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $55 — implies +77.8% from today's price.
Upside to Fair Value
77.8%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SNN
21.0x
vs
S&P 500
25.2x
17% discount
vs Healthcare Trailing P/E
SNN
21.0x
vs
Healthcare
22.2x
5% discount
vs SNN 5Y Avg P/E
Today
21.0x
vs
5Y Average
30.9x
32% discount
Forward PE
13.5x
S&P 500
19.1x
-29%
Healthcare
19.0x
-29%
5Y Avg
—
—
Trailing PE
21.0x
S&P 500
25.2x
-17%
Healthcare
22.2x
-5%
5Y Avg
30.9x
-32%
PEG Ratio
2.94x
S&P 500
1.74x
+69%
Healthcare
1.52x
+93%
5Y Avg
—
—
EV/EBITDA
9.9x
S&P 500
15.2x
-35%
Healthcare
14.1x
-30%
5Y Avg
12.5x
-21%
Price/FCF
15.0x
S&P 500
21.3x
-29%
Healthcare
18.6x
-19%
5Y Avg
41.4x
-64%
Price/Sales
2.1x
S&P 500
3.1x
-34%
Healthcare
2.8x
-26%
5Y Avg
2.1x
-0%
Dividend Yield
2.50%
S&P 500
1.87%
+34%
Healthcare
1.40%
+79%
5Y Avg
3.16%
-21%
| Metric | SNN | S&P 500 | Healthcare | 5Y Avg SNN |
|---|---|---|---|---|
| Forward PE | 13.5x | 19.1x-29% | 19.0x-29% | — |
| Trailing PE | 21.0x | 25.2x-17% | 22.2x | 30.9x-32% |
| PEG Ratio | 2.94x | 1.74x+69% | 1.52x+93% | — |
| EV/EBITDA | 9.9x | 15.2x-35% | 14.1x-30% | 12.5x-21% |
| Price/FCF | 15.0x | 21.3x-29% | 18.6x-19% | 41.4x-64% |
| Price/Sales | 2.1x | 3.1x-34% | 2.8x-26% | 2.1x |
| Dividend Yield | 2.50% | 1.87% | 1.40% | 3.16% |
SNN trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSNN Financial Health
Verdict
Strong
SNN generates $1.1B in free cash flow at a 9.5% margin — returns 6.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$11.6B
Revenue Growth
TTM vs prior year
+9.9%
Gross Margin
Gross profit as a share of revenue
70.2%
Operating Margin
Operating income divided by revenue
12.9%
Net Margin
Net income divided by revenue
6.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.82
Free Cash Flow (TTM)
Cash generation after capex
$1.1B
FCF Margin
FCF as share of revenue — the primary cash quality signal
9.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.4%
ROA
Return on assets, trailing twelve months
7.7%
Cash & Equivalents
Liquid assets on the balance sheet
$557M
Net Debt
Total debt minus cash
$2.8B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.5× FCF
~2.5 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
15.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
6.4%
Dividend
2.5%
Buyback
3.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$503M
Dividend / Share
Annualized trailing dividend per share
$0.76
Payout Ratio
Share of earnings distributed as dividends
52.8%
Shares Outstanding
Declining as buybacks retire shares
436M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageSNN Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Debt Load
Smith & Nephew carries a significant debt of approximately $3.32 billion USD as of December 2025. Although the net debt to EBITDA ratio is manageable at around 1.8x to 2.4x, the high debt level increases financial risk, particularly in a rising interest rate environment.
High Risk
Valuation Concerns
Analysts suggest that Smith & Nephew may be overvalued, with its current stock price trading at a premium to its intrinsic value estimate. If the company fails to meet growth expectations, this overvaluation could exert downward pressure on the stock.
High Risk
Litigation Risks
Smith & Nephew faces significant litigation risks, particularly related to product liability lawsuits concerning its metal-on-metal hip implants. The company has also settled SEC charges related to bribery in Greece, resulting in substantial fines.
Medium
Orthopaedics Segment Challenges
The major joints segment, especially knees, has underperformed compared to competitors due to portfolio rationalization and competitive pressures from platforms like Stryker's Mako. This underperformance could hinder revenue growth in a key market segment.
Medium
China Market Headwinds
Smith & Nephew encounters persistent challenges in the Chinese market, driven by political and regulatory uncertainties as well as inventory issues. These headwinds could adversely affect the company's market share and revenue in this critical region.
Medium
Competition
The medical device industry is highly competitive, with major players like DePuy Synthes, Zimmer Biomet, and Stryker competing for market share. Pricing pressures in orthopedics and competition in core product areas could negatively impact margin growth.
Lower
Regulatory Environment
Changes in the regulatory landscape, including the EU MDR and evolving FDA cybersecurity regulations, introduce complexity and compliance costs for Smith & Nephew. Adapting to these changes may strain resources and impact operational efficiency.
Lower
Cybersecurity Threats
Smith & Nephew acknowledges the risk of cybersecurity incidents, including data breaches and operational disruptions. The company is implementing a 'Secure by Design' approach to mitigate these threats, following a ransomware attack in February 2026.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SNN Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Undervalued Stock with Growth Potential
SNN is currently trading at $31.08, slightly below its GF Value™ of $31.16, indicating potential for price appreciation. The company's P/E ratio of 21.7x is significantly lower than its 5-year median of 36.2x, suggesting it is undervalued relative to its historical performance.
Strong Revenue Growth
Smith & Nephew has demonstrated solid growth, with a revenue increase of 5% in the first half of 2025 and a projected underlying revenue growth of around 5.0% for the full year. Additionally, the company achieved a remarkable 55.32% growth in Earnings Per Share (EPS) over the past year.
Positive Analyst Sentiment
As of April 28, 2026, the average 12-month price target from five analysts is $34.75, indicating a potential upside of 11.83% from the current price. Analysts generally favor SNN over other companies in the medical sector, reflected in a consensus rating score of 2.40 compared to the sector average of 2.30.
Resumed Dividend Growth and Buyback Program
Smith & Nephew has resumed dividend growth after a period of stagnation, signaling management's confidence in the company's future. Furthermore, a $500 million buyback program has been initiated, which is expected to enhance shareholder value.
Strong Financial Metrics
SNN boasts a strong GF Score™ of 88/100, indicating robust overall performance based on GuruFocus' metrics. The company also has a current ratio of 2.57 and an operating margin of 16.27%, reflecting its financial stability.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SNN Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$30.26
52W Range Position
21%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$27.97
+8.2% from the low
52-Week High
$38.79
-22.0% from the high
1 Month
-7.26%
3 Month
-12.77%
YTD
-8.0%
1 Year
+6.4%
3Y CAGR
-1.6%
5Y CAGR
-7.0%
10Y CAGR
-1.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SNN vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
13.5x
vs 16.6x median
-18% below peer median
Revenue Growth
-1.3%
vs +6.2% median
-120% below peer median
Net Margin
6.9%
vs 12.9% median
-47% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SNN SNN Smith & Nephew plc | $12.8B | 13.5x | -1.3% | 6.9% | Hold | +5.8% |
ZBH ZBH Zimmer Biomet Holdings, Inc. | $16.2B | 9.8x | +3.8% | 9.1% | Hold | +18.2% |
SYK SYK Stryker Corporation | $112.0B | 19.5x | +9.9% | 12.9% | Buy | +38.1% |
BSX BSX Boston Scientific Corporation | $83.2B | 16.6x | +12.8% | 14.4% | Buy | +63.1% |
HOL HOLX Hologic, Inc. | $17.0B | 17.2x | +0.3% | 13.2% | Hold | +3.9% |
CNM CNMD CONMED Corporation | $1.2B | 8.5x | +6.2% | 4.0% | Hold | +109.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SNN Dividend and Capital Return
SNN returns capital mainly through $503M/year in buybacks (3.9% buyback yield), with a modest 2.50% dividend — combining for 6.4% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
6.4%
Dividend + buyback return per year
Buyback Yield
3.9%
Dividend Yield
2.50%
Payout Ratio
52.8%
How SNN Splits Its Return
Div 2.50%
Buyback 3.9%
Dividend 2.50%Buybacks 3.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.76
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
0.5%
5Y Div CAGR
0.3%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
2 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$503M
Estimated Shares Retired
17M
Approx. Share Reduction
3.8%
Shares Outstanding
Current diluted share count from the screening snapshot
436M
At 3.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.47 | — | — | — |
| 2025 | $0.76 | +1.6% | 3.5% | 5.8% |
| 2024 | $0.75 | 0.0% | 0.0% | 3.0% |
| 2023 | $0.75 | 0.0% | 0.0% | 5.5% |
| 2022 | $0.75 | 0.0% | 1.3% | 4.1% |
FAQ
7 questionsSNN Investor Questions
Common questions answered from live analyst data and company financials.
01Is Smith & Nephew plc (SNN) stock a buy or sell in 2026?
Smith & Nephew plc (SNN) is rated Hold by Wall Street analysts as of 2026. Of 22 analysts covering the stock, 6 rate it Buy or Strong Buy, 15 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $32, implying +5.8% from the current price of $30. The bear case scenario is $23 and the bull case is $92.
02What is the SNN stock price target for 2026?
The Wall Street consensus price target for SNN is $32 based on 22 analyst estimates. The high-end target is $32 (+5.8% from today), and the low-end target is $32 (+5.8%). The base case model target is $47.
03Is Smith & Nephew plc (SNN) stock overvalued in 2026?
SNN trades at 13.5x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Smith & Nephew plc (SNN) stock in 2026?
The primary risks for SNN in 2026 are: (1) Debt Load — Smith & Nephew carries a significant debt of approximately $3. (2) Valuation Concerns — Analysts suggest that Smith & Nephew may be overvalued, with its current stock price trading at a premium to its intrinsic value estimate. (3) Litigation Risks — Smith & Nephew faces significant litigation risks, particularly related to product liability lawsuits concerning its metal-on-metal hip implants. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Smith & Nephew plc's revenue and earnings forecast?
Analyst consensus estimates SNN will report consensus revenue of $11.5B (-1.3% year-over-year) and EPS of $2.04 (+12.4% year-over-year) for the upcoming fiscal year. The following year, analysts project $12.2B in revenue.
06When does Smith & Nephew plc (SNN) report its next earnings?
A confirmed upcoming earnings date for SNN is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Smith & Nephew plc generate?
Smith & Nephew plc (SNN) generated $1.1B in free cash flow over the trailing twelve months — a free cash flow margin of 9.5%. SNN returns capital to shareholders through dividends (2.5% yield) and share repurchases ($503M TTM).