AUS
NZ
UK
CA
USA
IND
Highlights
- Smith & Nephew PLC shares have increased by around 11.50% in the last six months
- For the full year FY23, the medical technology company targets revenue growth in the range of 5% and 6%, and it expects a trading profit margin of at least 20% in 2025
- Worth mentioning here is that in FY22, its trading profit margin stood at 17.3%, which was a 3.9% decline over the trading profit margin of 18% reported in FY21
Shares of FTSE 100-listed medical equipment manufacturer Smith & Nephew PLC (LON: SN.) ended 0.891% lower at GBX 1,223.5 on Thursday (22 June 2023). Despite today's losses, the stock is up around 6.2% in the last three months. SN. shares hit a 52-week high of GBX 1,316.750 on 2 May this year and are just 7% away from that price.
The company, which operates in over 100 countries with over 17,500 employees, shared its Q1FY23 updates on 26 April 2023. As per the announcement, its Orthopaedics revenue rose by 3.9% year-on-year (YoY), and Sports Medicine & ENT increased by around 10.0% YoY during Q1 FY23. The company said it delivered growth across all three of its franchises during Q1 FY23 with a significant improvement in Orthopaedics.
For the full year FY23, the medical technology company targets revenue growth in the range of 5% and 6%, and it expects a trading profit margin of at least 20% in 2025 driven by productivity improvements. Overall, the company is focused on fixing Orthopaedics, improving productivity, and accelerating growth in Advanced Wound Management & Sports Medicine.
It is Worth mentioning that in FY22, its trading profit margin stood at 17.3%, a 3.9% decline over the trading profit margin of 18% reported in FY21. In the previous fiscal, its revenue remained almost unchanged at USD 5.215 billion. The company is targeting underlying revenue growth between 5.0% and 6.0% for FY23.
However, the company may face certain challenges in achieving its FY23 revenue target. Recession, devaluation of the pound, inflation and shrinking economy indicates the British economy is not doing well, and it may weigh on its domestic earnings. But given that the company is present in over 100 countries and derives a significant chunk of its revenue from the global market, there is a silver lining.
Meanwhile, a failure of partner relationships could also adversely impact the company's business.
1. Top 10 Shareholders
The top 10 shareholders collectively form ~23.30% of the total shareholding in the company. BlackRock Institutional Trust Company, N.A. holds the maximum number of shares with ~5.32% shareholding, followed by The Vanguard Group, Inc. with ~3.78% shareholding, as depicted in the chart below:
Stock Price Performance
The stock has witnessed a decline of 3.58% in the last one month, and over the last six months, it has increased by 11.50%. The stock has a 52-week low and 52-week high of GBX 959.200 & GBX 1,316.750, respectively and is currently trading below the average of 52-week high and low.
Please note markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 22 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
