Smith & Nephew plc cash flow to debt ratio of 38.71% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Smith & Nephew plc's free cash flow has increased 40.92% from $606.00M last year to $853.99M, signaling increasing performance

Smith & Nephew plc's debt to equity ratio is 0.63, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

Smith & Nephew plc's debt has decreased relative to shareholder equity from 0.63 last year to 0.63 today, signaling strengthened financials

Smith & Nephew plc has a net debt to EBITDA ratio of 1.75x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Smith & Nephew plc's interest coverage ratio of 6.43 indicates that earnings with good margin can cover interest payments on company debt

Smith & Nephew plc's profit margin has increased (42.99%) in the last year from 7.09% to 10.14%, signaling increasing performance

Smith & Nephew plc's short-term assets of $4.10G exceed its short-term liabilities of $1.59G

Smith & Nephew plc's return on assets of 6.10% is higher than the 5.00% threshold, indicating efficient asset utilization

Smith & Nephew plc's return on equity of 11.79%, is lower than 15.00%, indicating bad performance

Smith & Nephew plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Smith & Nephew plc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings

Smith & Nephew plc has positive free cash flow, indicating the company generates cash after capital expenditures

Smith & Nephew plc has a free cash flow yield of 6.71%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Smith & Nephew plc's yearly earnings has increased 52.05% since last year from $412.00M to $626.46M, signaling increasing performance

Smith & Nephew plc's yearly revenue has increased 6.34% since last year from $5.81G to $6.18G, signaling increasing performance

ROIC 9.11% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Smith & Nephew plc's 3-year revenue CAGR of 5.81% is positive, indicating growing revenue over the past 3 years

Smith & Nephew plc had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

Smith & Nephew plc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity

Smith & Nephew plc is overvalued relative to its fair value price of 29.03 based on Discounted Cash Flow model

Smith & Nephew plc has an earnings yield of 2.45%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Smith & Nephew plc is overvalued relative to its fair value price of 19.42 based on EBITDA multiple model

Smith & Nephew plc has an EV/EBITDA ratio of 9.63x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Smith & Nephew plc is undervalued relative to its fair value price of 30.14 based on Earnings Fair Value model

Smith & Nephew plc has a PEG-ratio under 1 which is considered undervalued

Smith & Nephew plc has a price-to-book ratio of 2.46x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Smith & Nephew plc has a price-to-sales ratio of 2.02x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue