Smith & Nephew SNATS Inc. Common Stock (SNN)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Smith & Nephew as a Graham-style analyst: what is the business worth, and what am I paying? It is a 17,000-employee medical-device maker in orthopaedics, sports medicine and ENT, and advanced wound management. Those markets have regulatory and switching frictions, which can support a moat, but the figures shown do not prove a wide one. FairStock's calculated ROCE is only 5.16%, while ROE is 11.85%; decent equity returns, but weak capital efficiency. The debt-to-equity ratio of 0.73 is manageable but not conservative. The Piotroski F-Score is 2/9, suggesting fragile recent financial signals, and the Altman Z-Score of 2.58 sits in a gray zone. Valuation is the hard part. At the 2026-10-13 close of $27.86, the market cap is about $13.6B. FairStock reports a P/E of 18.95 and a very high P/B of 11.47. Its Graham Number is $14.35, leaving a margin of safety of negative 94.15%, meaning the price is far above what asset value and earnings alone would justify. The 2.88% dividend yield and low beta of 0.68 are attractions for a defensive income holder, but not enough by themselves. Growth is a blank: revenue and profit growth are listed as N/A, and the Lynch category is none because only zero years of filed results are available and three are needed. The 52-week range of $26.12 to $37.51 shows the shares near the low, but cheapness must be earned by numbers, not price alone. On these figures, I see a fair business at an expensive-looking price, with returns too modest and financial quality too mixed to call it a bargain.

In plain English: Smith & Nephew makes medical devices for joint replacement, sports medicine, ear/nose/throat, and wound care. The business earns only modest profits relative to its size and carries some debt, so the picture is mixed rather than clearly strong. At the recent price of $27.86, the shares look expensive compared with the company's earnings and accounting value.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer