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Titel |
Bewertung |
| 11.08.25 09:32:44 |
Wir ran ein Stock-Scan für Ergebnis Wachstum und Smiths Gruppe (LON:SMIN) mit Ease |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Okay, here’s a 400-word summary of the text, followed by the German translation:
**Summary (English)**
This article analyzes Smiths Group (LON:SMIN) as an investment opportunity, arguing it’s a compelling choice for investors seeking stable growth and profitability. It counters the common investor trap of chasing "good stories" with loss-making companies.
Smiths Group stands out due to its consistent revenue generation and profitability. Crucially, the company has demonstrated impressive earnings per share (EPS) growth of 14% annually over the past three years – a sustainable growth rate. Combined with stable and high EBIT margins, this indicates a strong competitive advantage. Revenue has grown by 6.1% to £3.2b, further bolstering this positive outlook.
The article highlights the significance of insider buying. Smiths Group’s insiders, including the Independent Non-Executive Chairman, have been actively purchasing shares, spending a total of £558,000 in the last twelve months. This signals confidence and aligns management’s interests with those of shareholders. Furthermore, the CEO’s relatively modest compensation package – significantly lower than comparable companies – reinforces this alignment.
The analysis emphasizes the importance of looking beyond initial impressions. While the company operates in the potentially disruptive AI healthcare sector, the focus here is on Smiths Group’s established business model and proven track record. The author suggests this stock deserves a place on an investor's watchlist, particularly for those seeking reliable growth.
**German Translation**
Hier ist eine Zusammenfassung des Textes auf Deutsch:
Diese Analyse bewertet Smiths Group (LON:SMIN) als Investitionsmöglichkeit und argumentiert, dass sie eine überzeugende Wahl für Investoren ist, die stabile Wachstum und Rentabilität suchen. Sie widerspricht der üblichen Anlegerfalle, "gute Geschichten" mit Verlustunternehmen zu verfolgen.
Smiths Group zeichnet sich durch die kontinuierliche Umsatzgenerierung und Rentabilität aus. Entscheidend ist, dass das Unternehmen beeindruckendes Wachstum des Gewinn- und Verlust-Ausgleichs (EPS) in Höhe von 14 % jährlich in den letzten drei Jahren gezeigt hat – ein nachhaltiger Wachstumsrate. In Verbindung mit stabilen und hohen EBIT-Marge, deutet dies auf einen starken Wettbewerbsvorteil hin. Der Umsatz ist um 6,1 % auf 3,2 Mrd. GBP gestiegen, was diese positive Perspektive weiter untermauert.
Der Artikel hebt die Bedeutung des Insider-Kaufens hervor. Smiths Groups Insidert – einschliesslich des Unabhängigen Nicht-Aufsichtsratsvorsitzenden – haben aktiv Aktien gekauft, insgesamt 558.000 GBP in den letzten zwölf Monaten ausgegeben. Dies signalisiert Zuversicht und richtet die Interessen der Unternehmensleitung mit denen der Aktionäre aus. Darüber hinaus deutet der relativ bescheidene Vergütungspaket des CEO – deutlich niedriger als bei vergleichbaren Unternehmen – darauf hin.
Der Artikel betont die Bedeutung, über erste Eindrücke hinauszublicken. Obwohl das Unternehmen im potenziell disruptiven KI-Gesundheitswesen tätig ist, liegt der Fokus hier auf dem etablierten Geschäftsmodell und dem nachgewiesenen Erfolg von Smiths Group. Der Autor schlägt vor, dass diese Aktie einen Platz auf der Beobachtungsliste eines Investors verdient, insbesondere für diejenigen, die zuverlässiges Wachstum suchen. |
| 18.07.25 05:00:29 |
Those who invested in Smiths Group (LON:SMIN) five years ago are up 83% |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Smiths Group plc (LON:SMIN) shareholders have enjoyed a 60% share price rise over the last half decade, well in excess of the market return of around 26% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 40%, including dividends.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
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While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Over half a decade, Smiths Group managed to grow its earnings per share at 30% a year. The EPS growth is more impressive than the yearly share price gain of 10% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).LSE:SMIN Earnings Per Share Growth July 18th 2025
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Smiths Group the TSR over the last 5 years was 83%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
It's good to see that Smiths Group has rewarded shareholders with a total shareholder return of 40% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Smiths Group by clicking this link.
Story Continues
Smiths Group is not the only stock insiders are buying. So take a peek at this freelist of small cap companies at attractive valuations which insiders have been buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 27.06.25 13:32:58 |
Are Investors Undervaluing Smiths Group plc (LON:SMIN) By 30%? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Smiths Group fair value estimate is UK£31.85 Current share price of UK£22.18 suggests Smiths Group is potentially 30% undervalued Analyst price target for SMIN is UK£23.48 which is 26% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Smiths Group plc (LON:SMIN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
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Crunching The Numbers
We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars:
10-year free cash flow (FCF) estimate
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (£, Millions) UK£302.6m UK£344.5m UK£396.5m UK£422.0m UK£523.0m UK£575.7m UK£620.7m UK£659.4m UK£693.2m UK£723.3m Growth Rate Estimate Source Analyst x6 Analyst x7 Analyst x7 Analyst x1 Analyst x1 Est @ 10.08% Est @ 7.82% Est @ 6.23% Est @ 5.13% Est @ 4.35% Present Value (£, Millions) Discounted @ 7.6% UK£281 UK£298 UK£319 UK£315 UK£363 UK£372 UK£373 UK£368 UK£360 UK£349
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = UK£3.4b
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We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.5%. We discount the terminal cash flows to today's value at a cost of equity of 7.6%.
Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = UK£723m× (1 + 2.5%) ÷ (7.6%– 2.5%) = UK£15b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= UK£15b÷ ( 1 + 7.6%)10= UK£7.1b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is UK£11b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of UK£22.2, the company appears quite good value at a 30% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.LSE:SMIN Discounted Cash Flow June 27th 2025
The Assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Smiths Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.6%, which is based on a levered beta of 0.979. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Check out our latest analysis for Smiths Group
SWOT Analysis for Smiths Group
Strength
Earnings growth over the past year exceeded the industry.
Debt is not viewed as a risk.
Dividends are covered by earnings and cash flows.
Weakness
Dividend is low compared to the top 25% of dividend payers in the Industrials market.
Opportunity
Annual earnings are forecast to grow for the next 3 years.
Trading below our estimate of fair value by more than 20%.
Threat
Annual earnings are forecast to grow slower than the British market.
Next Steps:
Although the valuation of a company is important, it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Why is the intrinsic value higher than the current share price? For Smiths Group, we've compiled three essential factors you should assess:
Financial Health: Does SMIN have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does SMIN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the LSE every day. If you want to find the calculation for other stocks just search here.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 18.04.25 15:40:08 |
SMGZY or APP: Which Is the Better Value Stock Right Now? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY) and AppLovin (APP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while AppLovin has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SMGZY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SMGZY currently has a forward P/E ratio of 15.84, while APP has a forward P/E of 35.65. We also note that SMGZY has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APP currently has a PEG ratio of 1.78.
Another notable valuation metric for SMGZY is its P/B ratio of 2.93. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, APP has a P/B of 74.33.
Based on these metrics and many more, SMGZY holds a Value grade of B, while APP has a Value grade of F.
SMGZY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SMGZY is likely the superior value option right now.
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Smiths Group PLC (SMGZY) : Free Stock Analysis Report
AppLovin Corporation (APP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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| 18.04.25 08:53:54 |
Could The Market Be Wrong About Smiths Group plc (LON:SMIN) Given Its Attractive Financial Prospects? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Smiths Group (LON:SMIN) has had a rough month with its share price down 11%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Smiths Group's ROE in this article.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.
Our free stock report includes 1 warning sign investors should be aware of before investing in Smiths Group. Read for free now.
How Is ROE Calculated?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Smiths Group is:
13% = UK£308m ÷ UK£2.3b (Based on the trailing twelve months to January 2025).
The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every £1 worth of equity, the company was able to earn £0.13 in profit.
View our latest analysis for Smiths Group
Why Is ROE Important For Earnings Growth?
So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company’s earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Smiths Group's Earnings Growth And 13% ROE
To start with, Smiths Group's ROE looks acceptable. On comparing with the average industry ROE of 7.3% the company's ROE looks pretty remarkable. Probably as a result of this, Smiths Group was able to see an impressive net income growth of 26% over the last five years. However, there could also be other causes behind this growth. Such as - high earnings retention or an efficient management in place.
We then compared Smiths Group's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 14% in the same 5-year period.LSE:SMIN Past Earnings Growth April 18th 2025
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for SMIN? You can find out in our latest intrinsic value infographic research report.
Story Continues
Is Smiths Group Making Efficient Use Of Its Profits?
The high three-year median payout ratio of 63% (implying that it keeps only 37% of profits) for Smiths Group suggests that the company's growth wasn't really hampered despite it returning most of the earnings to its shareholders.
Additionally, Smiths Group has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 38% over the next three years. As a result, the expected drop in Smiths Group's payout ratio explains the anticipated rise in the company's future ROE to 18%, over the same period.
Conclusion
In total, we are pretty happy with Smiths Group's performance. Especially the high ROE, Which has contributed to the impressive growth seen in earnings. Despite the company reinvesting only a small portion of its profits, it still has managed to grow its earnings so that is appreciable. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this freereport on analyst forecasts for the company to find out more.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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| 11.04.25 11:00:00 |
Smiths Detection Secures Deal to Supply SDX 6040 Systems to Major Cruise Lines |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Smiths Detection's SDX 6040
LONDON, April 11, 2025--(BUSINESS WIRE)--Smiths Detection, a global leader in threat detection and security screening technologies, and a business of Smiths Group plc, today announces it is to supply SDX 6040 X-ray inspection systems to a number of major cruise lines.
With thousands of people and large quantities of cargo coming onboard, screening systems are vital in helping detect weapons, explosives, drugs, and other prohibited items hidden in luggage or supplies. The SDX 6040 offers the best image quality on the market, with unmatched clarity in detection that enables operators to quickly screen bags, ensuring that boarding the ship is safe and seamless for passengers.
The SDX 6040’s portable and flexible design makes it the perfect solution for cruise line operators seeking a mobile X-ray inspection system that delivers high protection and operational efficiency. Its compact footprint means it can be easily manoeuvred onboard and conveniently stored within the vessel. It can also fit through a standard door, eliminating the need for complicated installations and concerns about fitting into tight spaces.
The system’s smart image display features, including organic stripping and enhancement modes, provide superior discrimination between organic and inorganic materials, critical for the precise detection of explosives, drugs, and other contraband -- while its high throughput capability ensures that large volumes of luggage can be screened quickly and efficiently, minimizing delays and maintaining smooth operations.
The SDX 6040’s advanced detection system provides a complete 100% view of every item, eliminating blind spots and significantly enhancing security. Additionally, the scanner integrates seamlessly with iCMORE AI technology, offering automated threat detection for a wide array of prohibited items, including currency, weapons, lithium batteries, and other hazardous goods. The system's algorithms can be updated as new threats emerge, ensuring it meets the evolving needs of the cruise industry.
Matthias Springer, VP of Sales at Smiths Detection Inc., said of the sales: "At Smiths Detection, we serve customers in a wide range of market sectors, with a significant focus on cruise lines. The SDX 6040 is revolutionizing maritime security, providing our customers with the highest levels of safety and assurance while maintaining efficient throughput of passengers. With superior image quality, portability, and flexibility, it is an ideal solution for the dynamic environments of cruise ships."
For more information about the SDX 6040 and to schedule a demonstration, visit www.smithsdetection.com/products/sdx-6040 or contact info@smithsdetection.com
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About Smiths Detection:
Smiths Detection is a global leader in threat detection and screening technologies for aviation, ports and borders, urban security, and defence. With more than 70 years of field-tested experience, Smiths Detection delivers the solutions needed to protect society from the threat and illegal passage of explosives, prohibited weapons, contraband, toxic chemicals, biological agents, and narcotics—helping make the world a safer place.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250411479497/en/
Contacts
Media Contacts:
FTI Consulting
Tom Hufton/Matthew Young/Liam Gerrard
sc.smithsdetection@fticonsulting.com
+44 (0)20 3727 1000
Smiths Detection
Corrina Gee, Head of Communications
Corrina.Gee@smithsdetection.com
+44 (0)79 0970 9811
View Comments |
| 02.04.25 15:40:10 |
SMGZY vs. MLNK: Which Stock Is the Better Value Option? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY) and MeridianLink (MLNK). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while MeridianLink has a Zacks Rank of #3 (Hold). This means that SMGZY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SMGZY currently has a forward P/E ratio of 16.83, while MLNK has a forward P/E of 52.11. We also note that SMGZY has a PEG ratio of 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MLNK currently has a PEG ratio of 1.76.
Another notable valuation metric for SMGZY is its P/B ratio of 3.13. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MLNK has a P/B of 3.31.
Based on these metrics and many more, SMGZY holds a Value grade of B, while MLNK has a Value grade of F.
SMGZY stands above MLNK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SMGZY is the superior value option right now.
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Smiths Group PLC (SMGZY) : Free Stock Analysis Report
MeridianLink, Inc. (MLNK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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| 01.04.25 13:40:08 |
Is Smiths Group (SMGZY) Stock Outpacing Its Business Services Peers This Year? |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Smiths Group PLC (SMGZY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
Smiths Group PLC is a member of our Business Services group, which includes 274 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Smiths Group PLC is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SMGZY's full-year earnings has moved 4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, SMGZY has gained about 18.7% so far this year. At the same time, Business Services stocks have gained an average of 1%. This shows that Smiths Group PLC is outperforming its peers so far this year.
Sims Metal Management Ltd. (SMSMY) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 30.7%.
The consensus estimate for Sims Metal Management Ltd.'s current year EPS has increased 20% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Smiths Group PLC belongs to the Technology Services industry, a group that includes 133 individual stocks and currently sits at #50 in the Zacks Industry Rank. This group has lost an average of 9.8% so far this year, so SMGZY is performing better in this area.
On the other hand, Sims Metal Management Ltd. belongs to the Waste Removal Services industry. This 23-stock industry is currently ranked #178. The industry has moved +8.2% year to date.
Investors with an interest in Business Services stocks should continue to track Smiths Group PLC and Sims Metal Management Ltd. These stocks will be looking to continue their solid performance.
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Story Continues
Smiths Group PLC (SMGZY) : Free Stock Analysis Report
Sims Metal Management Ltd. (SMSMY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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| 27.03.25 05:14:40 |
Smiths Group First Half 2025 Earnings: EPS: UK£0.49 (vs UK£0.32 in 1H 2024) |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Smiths Group (LON:SMIN) First Half 2025 Results
Key Financial Results
Revenue: UK£1.61b (up 6.7% from 1H 2024). Net income: UK£167.0m (up 51% from 1H 2024). Profit margin: 10% (up from 7.4% in 1H 2024). The increase in margin was driven by higher revenue. EPS: UK£0.49 (up from UK£0.32 in 1H 2024).
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All figures shown in the chart above are for the trailing 12 month (TTM) period
Smiths Group Earnings Insights
Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Industrials industry in Europe.
Performance of the market in the United Kingdom.
The company's shares are down 1.8% from a week ago.
Balance Sheet Analysis
While earnings are important, another area to consider is the balance sheet. We have a graphic representation of Smiths Group's balance sheet and an in-depth analysis of the company's financial position.
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| 26.03.25 07:00:32 |
Smiths Group PLC (SMGKF) (H1 2025) Earnings Call Highlights: Strong Organic Growth and ... |
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**Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!**
Organic Revenue Growth: 9.1%, including acquisitions increased to 10.2%. Reported Revenue Growth: 6.7%, impacted by adverse foreign exchange. Operating Profit Growth: 12.6% organic, 9.5% reported, with a margin expansion of 40 basis points to 16.7%. EPS Growth: 14%, enhanced by lower tax, interest charges, and share buyback program. Cash Conversion: 94%. Return on Capital Employed: 17.1%. Dividend Increase: 5% to 14.23p. Share Buyback Program: Increased to GBP500 million. Free Cash Flow: GBP143 million, up nearly 30% from last year. John Crane Organic Revenue Growth: 3.8%. Flex-Tek Organic Revenue Growth: 2.5%, with acquisitions adding 4.4%. Smiths Detection Organic Revenue Growth: 15.3%. Smiths Interconnect Organic Revenue Growth: 26.8%. Full-Year CapEx Expectation: Around GBP100 million. Acquisition of Duc-Pac Corporation: GBP32 million at 7.2 times EBITDA.
Warning! GuruFocus has detected 6 Warning Sign with SMGKF.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Smiths Group PLC (SMGKF) reported strong financial performance with organic revenue growth of 9.1% and operating profit growth of 12.6% on an organic basis. The company increased its dividend by 5% and expanded its share buyback program to GBP500 million, enhancing shareholder returns. Smiths Detection and Smiths Interconnect showed significant growth, with Detection's revenue increasing by 15.3% organically and Interconnect's revenue growing by 26.8%. The company is executing a strategic plan to focus on high-performance technologies, which includes the separation of Smiths Interconnect and Smiths Detection to unlock value. Smiths Group PLC (SMGKF) reaffirmed its fiscal-year '25 guidance, which has been raised twice since last September, indicating confidence in future performance.
Negative Points
The company experienced a cybersecurity incident in January, impacting John Crane's performance and causing a 1% to 2% reduction in growth for the division. Adverse foreign exchange effects led to a lower reported revenue growth of 6.7%, compared to the organic growth rate. The mix of business and product lines led to a 60 basis point contraction in margins, particularly affecting John Crane and Flex-Tek. The US construction market remains uncertain, affecting Flex-Tek's growth outlook, with new housing permits and starts showing declines. The separation process for Smiths Interconnect and Smiths Detection involves complexities and potential costs, with the company needing to ensure a smooth transition.
Story Continues
Q & A Highlights
Q: Can you quantify the impact of the cyber incident on John Crane and discuss the recovery outlook? A: Roland Carter, CEO: The cyber incident impacted John Crane significantly, reducing growth by 1% to 2%. We expect a stronger second half as recovery progresses, but it will take time due to the vertically integrated nature of the business. Aftermarket recovery is underway, and we anticipate improved performance in H2.
Q: What are the plans for the demerger or sale of Smiths Detection and Smiths Interconnect? A: Roland Carter, CEO: We aim to announce the sale of Smiths Interconnect by the end of the calendar year, with Smiths Detection to follow. We are open to both demerger and sale options, focusing on value creation. The processes are on track with governance and advisory structures in place.
Q: How do you view the growth assumptions for FutureSmiths, and what are the margin improvement prospects? A: Roland Carter, CEO: We target a 5% to 7% organic revenue growth and a 21% to 23% margin. Both John Crane and Flex-Tek have opportunities for margin expansion through pricing, efficiency, and innovation. The focus on these businesses will drive technical and commercial advancements.
Q: Can you elaborate on the performance and outlook for Flex-Tek, especially in the industrial segment? A: Roland Carter, CEO: Flex-Tek's industrial segment grew 2% despite a subdued construction market. We expect stronger growth in H2, driven by industrial heat and aerospace segments. The US housing market recovery will be a key driver, and we are well-positioned to capitalize on it.
Q: What is the sustainability of the Interconnect margin, and how are you managing US tariffs? A: Julian Fagge, CFO: Interconnect's margin performance was strong, and we expect it to remain robust in the second half. Regarding US tariffs, our local-for-local approach mitigates impacts, and we have plans to address any changes in the tariff landscape.
Q: How is the semiconductor segment performing within Interconnect, and what is the visibility on future growth? A: Julian Fagge, CFO: The semiconductor segment, particularly in high-performance GPUs and AI, performed strongly. Although the market is short-cycle, underlying conditions remain positive, and we are well-positioned with our advanced technology offerings.
Q: What is the status of the M&A pipeline, and how are you managing capacity for acquisitions amid other initiatives? A: Roland Carter, CEO: We have a focused pipeline for bolt-on acquisitions, particularly in Flex-Tek and John Crane. Dedicated teams manage these acquisitions, ensuring we maintain capacity for strategic initiatives like demergers and the acceleration program.
Q: Can you provide an update on the divestment process for Interconnect and Detection? A: Julian Fagge, CFO: The divestment process is proceeding as planned, with strong interest expected. We are confident in executing the transactions as committed, focusing on maximizing value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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