Smith & Nephew is a global medical technology business that develops, manufactures, and markets advanced medical devices and services. Founded in 1856, the company is based in London and operates in more than 100 countries. It has a wide portfolio of orthopedic, wound management, and sports medicine products. Its products and services are used in a variety of surgical and non-surgical treatments and procedures. In this article, we’ll take a look at the company’s fundamentals and technicals to evaluate whether or not Smith & Nephew is a good buy.
Smith and Nephew $SNN Stock Forms Resurrection Cross
Smith and Nephew $SNN stock has confirmed a Resurrection CrossWhen the 50 day moving average crosses above the 200 day moving average, it is called a Resurrection Cross. Conversely, when the 50 day moving average crosses below the 200 day mov... as of February 5, 2023. The stock is also a turnaround candidate. $SNN stock has a technical strong uptrend rating.
Fundamental Analysis Overview
Fundamental analysis is the process of examining a company’s financial statementsFinancial statements are the primary tool used by investors to evaluate a company's financial health. They are an important part of a company's reporting, providing a snapshot of i... and other information to assess its financial health. By examining the company’s performance using various metrics such as revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th..., earnings, and cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves..., investors can get an idea of whether or not Smith & Nephew is a good investment.
When conducting a fundamental analysis, it is important to compare the company’s performance to that of its peers. This helps investors to determine if the company is performing better or worse than its competitors. Additionally, investors can look for trends in the company’s performance that may indicate potential growth or decline.
Evaluating Smith & Nephew’s Performance
When evaluating Smith & Nephew’s performance, it is important to look at a number of metrics. The company’s revenue and profits have seen steady growth in recent years, reaching a record high of $5.5 billion in 2020. Additionally, the company’s operating margin has been consistently above 20%, indicating that it is managing its costs efficiently.
The company’s cash flow is also strong, with a trailing 12-month cash flow of $1.3 billion. This indicates that the company has the money available to invest in new projects or technologies. Additionally, Smith & Nephew has a strong balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity., with a debt-to-equity ratio of 0.54. This indicates the company is not overly reliant on debt financing, which is a positive sign.
Is Smith & Nephew a Good Buy?
From a fundamental analysis perspective, Smith & Nephew appears to be a solid investment. The company has seen steady growth in revenue and profits, and its operating margin and cash flow are both strong. Additionally, the company has a strong balance sheet, with a low debt-to-equity ratio.
Overall, Smith & Nephew appears to be a good buy, as the company has strong fundamentals and is poised for future growth. Investors should conduct their own research before investing in any stock, but Smith & Nephew appears to be a solid long-term investment.
Smith and Nephew receives Innovative Technology designation from Vizient for LEAF™ Patient Monitoring System
The largest healthcare performance improvement company in the US, Vizient, recognized the LEAF Patient Monitoring System as an Innovative Technology on January 30, 2023, according to Smith and Nephew. On October 17, 2022, in Dallas, Texas, Smith and Nephew displayed the LEAF Patient Monitoring System at the Vizient Innovative Technology Exchange.
Healthcare professionals who serve on member-led Vizient councils evaluate particular products and technologies each year for their potential to improve clinical care, patient safety, healthcare worker safety, or business operations of healthcare organizations. To inform healthcare providers of the effects of these innovations on patient care and business models of healthcare organizations, innovative technology designations are given to previously contracted products.
The LEAF Patient Monitoring System is the first wireless, wearable product that complies with NPIAP guidelines for preventing pressure injuries. The LEAF System has been shown to help lower the risk of developing hospital-acquired pressure injuries (HAPIs) by 73 percent and to help improve adherence to individual turn protocols up to 98 percent.
In one facility’s critical care unit, the use of the LEAF System led to up to $1.8 million in estimated annual cost savings and improved nursing productivity.
“We are very proud to receive the Innovative Technology designation from Vizient. Pressure injuries are the only hospital acquired complication on the rise in the US, costing roughly $11B in preventable treatments, with dire impact to those patients affected,” said Paolo Di Vincenzo, Senior Vice President US Commercial, Advanced Wound Management for Smith and Nephew. “We will not settle until we’ve solved this challenge and are excited for the role our LEAF Patient Monitoring System will play – fast becoming a standard of patient care in the U.S. and reducing facility costs.”
Smith and Nephew initiated with a Buy at Citi
Smith and Nephew was given a Buy rating and a price target of 1,275 GBp by Citi analyst Veronika Dubajova when she began coverage of the company on December 12, 2022. According to Dubajova’s research note to investors, the European health care services and medical technology group should experience below-average revenue and earnings growth in 2023 as consumer softness and above-average wage growth offset modestly improving surgical procedure volumes. However, the analyst anticipates that the sector will significantly outperform market predictions made by Citi strategists in terms of revenue and earnings growth. Dubajova favors high-quality growth that can withstand macroeconomic shocks or in industries where there are significant mid-term growth prospects.
Conclusion
In conclusion, Smith & Nephew appears to be a good buy based on technical and fundamental analysis. The stock has confirmed a Resurrection Cross chart pattern. The company has seen steady growth in revenue and profits and has a strong balance sheet with a low debt-to-equity ratio. Additionally, the company’s cash flow is strong, indicating that it has the money available to invest in new projects. Overall, Smith & Nephew appears to be a good investment for those looking for a long-term investment.
Smith and Nephew Purpose
