Recent News
On Sept. 30, 2025 the company said Chief Financial Officer John Rogers will relocate to the U.S., aligning senior pay with U.S. market practice and increasing performance-linked incentives.
In late September 2025 Smith & Nephew announced a $500 million share buyback following better-than-expected profit performance and rising revenues across orthopaedics, sports medicine, and advanced wound management.
Smith & Nephew launched the CorioGraph pre-operative planning and modeling services for its Cori robotic knee platform, highlighting expanded digital-surgical capabilities for knee arthroplasty.
The company entered a commercial collaboration to widen imaging modalities available for Cori-compatible robotic procedures, adding an ultrasound-based planning option via a third-party partner.
Technical Analysis
Directional indicators show bearish dominance: DI+ at 15.77 and DI- at 30.96, with DI+ decreasing and DI- increasing, which signals that sellers currently outweigh buyers; ADX at 26.99 denotes appreciable trend strength supporting that directional bias.
Momentum readings reinforce downside pressure: MACD sits at -2.79 and trends downward beneath its signal line at -1.43, indicating bearish momentum and no confirmed MACD bullish crossover.
MRO stands at -19.88 with a dip-and-reversal pattern, which implies price sits below a modeled target and carries potential for a corrective increase if the reversal sustains; treat this as a counterweight to the prevailing negative momentum rather than a confirmed turn.
RSI at 47.66 and decreasing implies mild selling pressure without oversold breadth; the 12-day EMA at $107.77 and 20-day average at $109.72 both sit above the $100.34 close, while the 50-day average at $115.20 remains materially higher—this alignment favors consolidation with downward bias until price clears short-term averages.
Volatility measures show a 42-day beta of 1.22 and a 52-week beta of 1.85, indicating above-market sensitivity; volume averages (10- and 200-day) sit marginally below current trading volume, suggesting liquidity supports moves but not extreme participation. Bollinger bands and Ichimoku levels position recent price action near the lower cloud boundary, which acts as dynamic resistance for rallies.
Fundamental Analysis
Revenue totaled $1,444,876,000 with revenue growth year-over-year of 6.24% and a reported revenue growth metric of 18.18% (labelled revenueGrowth). Gross margin sits at 49.01% with a slight YoY improvement of 1.85 percentage points; gross profit reached $708,167,000, supporting operating leverage gains.
Operating income measures show EBIT of $194,650,000 and EBIT margin of 13.47%, which increased QoQ by 4.14% and improved YoY by 60.94%. The EBIT margin sits slightly below the industry peer mean of 14.57% but above the industry peer low, indicating competitive but not leading margin performance relative to peers.
EPS came in at $0.97 versus an estimate of $0.80, producing an EPS surprise of 21.25%, and forward EPS of $1.2175. Reported PE equals 106.9x while forward PE equals 74.20x; both metrics remain elevated relative to typical medians, reflecting high market multiple expectations.
Cash flow shows strain: operating cash flow at $-9,082,000 and free cash flow at $-36,688,000 produce a free cash flow yield of about -0.24% and year-over-year free cash flow contraction near -90.99%, which contrasts with positive operating margins and signals near-term cash conversion pressures.
Balance-sheet and leverage metrics: total debt $918,899,000, net debt roughly $567,582,000, debt-to-EBITDA about 4.0x, and interest coverage near 14.14x. The capital structure supports servicing debt, though leverage sits above conservative medians for the industry peer mean. Cash conversion cycle stands at 147 days versus an industry peer mean of 139 days, indicating inventory and receivable working-capital intensity.
Returns show ROE at 6.32% and return on assets at 3.20%, both above the industry peer mean where provided; asset turnover at 0.33 suggests moderate efficiency in converting assets to revenue. R&D investment totaled $89,409,000, supporting the robotics and digital-surgery product expansion noted in recent news.
Valuation note: WMDST values the stock as over-valued. Key drivers include a very high current PE (106.9x), negative free cash flow yield, and elevated enterprise multiples despite improving margins and a sizable buyback announcement that could compress shares outstanding and temporarily support per-share metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 224.7 M |
| Operating Cash Flow | $ -9.08 M | |
| Capital Expenditures | $ -27.61 M | |
| Change In Working Capital | $ -196.26 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -36.47 M | |
| End Period Cash Flow | $ 188.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.4 B | |
| Forward Revenue | $ 444.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 736.7 M | |
| Depreciation | $ 35.1 M | |
| Depreciation and Amortization | $ 35.1 M | |
| Research and Development | $ 89.4 M | |
| Total Operating Expenses | $ 1.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 708.2 M | |
| EBITDA | $ 229.7 M | |
| EBIT | $ 194.7 M | |
| Operating Income | $ 168.6 M | |
| Interest Income | — | |
| Interest Expense | $ 13.8 M | |
| Net Interest Income | $ -13.77 M | |
| Income Before Tax | $ 180.9 M | |
| Tax Provision | $ 41.3 M | |
| Tax Rate | 22.8 % | |
| Net Income | $ 139.6 M | |
| Net Income From Continuing Operations | $ 139.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.80 | |
| EPS Actual | $ 0.97 | |
| EPS Difference | $ 0.17 | |
| EPS Surprise | 21.25 % | |
| Forward EPS | $ 1.22 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.5 B | |
| Intangible Assets | $ 1.3 B | |
| Net Tangible Assets | $ 915.4 M | |
| Total Current Assets | $ 2.8 B | |
| Cash and Short-Term Investments | $ 188.2 M | |
| Cash | $ 188.2 M | |
| Net Receivables | $ 1.3 B | |
| Inventory | $ 1.1 B | |
| Long-Term Investments | $ 63.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 582.6 M | |
| Short-Term Debt | $ 39.3 M | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 567.6 M | |
| Total Debt | $ 918.9 M | |
| Total Liabilities | $ 2.3 B | |
| EQUITY | ||
| Total Equity | $ 2.2 B | |
| Retained Earnings | $ 1.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 15.65 | |
| Shares Outstanding | 141.051 M | |
| Revenue Per-Share | $ 10.24 | |
| VALUATION | Market Capitalization | $ 15.5 B |
| Enterprise Value | $ 16.2 B | |
| Enterprise Multiple | 70.59 | |
| Enterprise Multiple QoQ | 4.074 % | |
| Enterprise Multiple YoY | -7.077 % | |
| Enterprise Multiple IPRWA | high: 234.897 median: 76.655 SN: 70.59 mean: 69.027 low: -228.246 |
|
| EV/R | 11.223 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.056 | |
| Asset To Liability | 1.947 | |
| Debt To Capital | 0.294 | |
| Debt To Assets | 0.202 | |
| Debt To Assets QoQ | -9.179 % | |
| Debt To Assets YoY | 422.265 % | |
| Debt To Assets IPRWA | high: 1.297 mean: 0.243 SN: 0.202 median: 0.167 low: 0.002 |
|
| Debt To Equity | 0.416 | |
| Debt To Equity QoQ | -8.839 % | |
| Debt To Equity YoY | 358.959 % | |
| Debt To Equity IPRWA | high: 2.971 SN: 0.416 mean: 0.401 median: 0.266 low: -1.733 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.014 | |
| Price To Book QoQ | 17.298 % | |
| Price To Book YoY | 13.76 % | |
| Price To Book IPRWA | high: 19.098 SN: 7.014 median: 4.499 mean: 4.182 low: -7.981 |
|
| Price To Earnings (P/E) | 106.903 | |
| Price To Earnings QoQ | 7.623 % | |
| Price To Earnings YoY | 4.649 % | |
| Price To Earnings IPRWA | high: 246.592 SN: 106.903 median: 104.657 mean: 84.421 low: -204.468 |
|
| PE/G Ratio | 9.301 | |
| Price To Sales (P/S) | 10.717 | |
| Price To Sales QoQ | 7.508 % | |
| Price To Sales YoY | 31.854 % | |
| Price To Sales IPRWA | high: 154.906 mean: 21.045 median: 20.417 SN: 10.717 low: 0.297 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 74.203 | |
| Forward PE/G | 6.456 | |
| Forward P/S | 34.849 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.269 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.332 | |
| Asset Turnover Ratio QoQ | 16.212 % | |
| Asset Turnover Ratio YoY | -3.585 % | |
| Asset Turnover Ratio IPRWA | high: 0.482 SN: 0.332 mean: 0.156 median: 0.135 low: 0.0 |
|
| Receivables Turnover | 1.222 | |
| Receivables Turnover Ratio QoQ | 15.26 % | |
| Receivables Turnover Ratio YoY | -8.987 % | |
| Receivables Turnover Ratio IPRWA | high: 3.864 mean: 1.498 median: 1.457 SN: 1.222 low: 0.477 |
|
| Inventory Turnover | 0.727 | |
| Inventory Turnover Ratio QoQ | 9.971 % | |
| Inventory Turnover Ratio YoY | -10.707 % | |
| Inventory Turnover Ratio IPRWA | high: 3.161 mean: 0.74 SN: 0.727 median: 0.714 low: 0.003 |
|
| Days Sales Outstanding (DSO) | 74.699 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 146.948 | |
| Cash Conversion Cycle Days QoQ | 17.985 % | |
| Cash Conversion Cycle Days YoY | 17.387 % | |
| Cash Conversion Cycle Days IPRWA | high: 401.407 SN: 146.948 mean: 139.241 median: 114.45 low: -252.738 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.08 | |
| CapEx To Revenue | -0.019 | |
| CapEx To Depreciation | -0.787 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 2.9 B | |
| Net Invested Capital | $ 3.0 B | |
| Invested Capital | $ 3.0 B | |
| Net Tangible Assets | $ 915.4 M | |
| Net Working Capital | $ 1.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.133 | |
| Current Ratio | 1.943 | |
| Current Ratio QoQ | -1.544 % | |
| Current Ratio YoY | 13.905 % | |
| Current Ratio IPRWA | high: 14.715 mean: 2.262 SN: 1.943 median: 1.849 low: 0.353 |
|
| Quick Ratio | 1.201 | |
| Quick Ratio QoQ | 2.48 % | |
| Quick Ratio YoY | 15.175 % | |
| Quick Ratio IPRWA | high: 9.347 mean: 1.647 median: 1.303 SN: 1.201 low: 0.411 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 4.0 | |
| Cost Of Debt | 1.149 % | |
| Interest Coverage Ratio | 14.141 | |
| Interest Coverage Ratio QoQ | 12.913 % | |
| Interest Coverage Ratio YoY | 100.821 % | |
| Interest Coverage Ratio IPRWA | high: 274.877 mean: 25.702 median: 15.82 SN: 14.141 low: -384.45 |
|
| Operating Cash Flow Ratio | -0.049 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 76.977 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.714 % | |
| Revenue Growth | 18.177 % | |
| Revenue Growth QoQ | -157.542 % | |
| Revenue Growth YoY | 6.236 % | |
| Revenue Growth IPRWA | high: 47.668 % SN: 18.177 % median: 7.569 % mean: 7.252 % low: -31.512 % |
|
| Earnings Growth | 11.494 % | |
| Earnings Growth QoQ | -130.362 % | |
| Earnings Growth YoY | -134.81 % | |
| Earnings Growth IPRWA | high: 200.0 % median: 15.596 % mean: 14.709 % SN: 11.494 % low: -227.273 % |
|
| MARGINS | ||
| Gross Margin | 49.012 % | |
| Gross Margin QoQ | -0.661 % | |
| Gross Margin YoY | 1.845 % | |
| Gross Margin IPRWA | high: 94.498 % mean: 57.156 % median: 56.435 % SN: 49.012 % low: 6.0 % |
|
| EBIT Margin | 13.472 % | |
| EBIT Margin QoQ | 4.143 % | |
| EBIT Margin YoY | 60.937 % | |
| EBIT Margin IPRWA | high: 33.87 % median: 20.382 % mean: 14.569 % SN: 13.472 % low: -1000.426 % |
|
| Return On Sales (ROS) | 11.672 % | |
| Return On Sales QoQ | -9.771 % | |
| Return On Sales YoY | 39.434 % | |
| Return On Sales IPRWA | high: 35.533 % median: 18.417 % mean: 12.934 % SN: 11.672 % low: -1349.836 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -36.69 M | |
| Free Cash Flow Yield | -0.237 % | |
| Free Cash Flow Yield QoQ | -68.484 % | |
| Free Cash Flow Yield YoY | -74.974 % | |
| Free Cash Flow Yield IPRWA | high: 11.539 % mean: 0.758 % median: 0.679 % SN: -0.237 % low: -40.868 % |
|
| Free Cash Growth | -59.976 % | |
| Free Cash Growth QoQ | -50.337 % | |
| Free Cash Growth YoY | -90.99 % | |
| Free Cash Growth IPRWA | high: 337.277 % mean: 10.606 % median: -1.288 % SN: -59.976 % low: -261.538 % |
|
| Free Cash To Net Income | -0.263 | |
| Cash Flow Margin | -4.784 % | |
| Cash Flow To Earnings | -0.495 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.204 % | |
| Return On Assets QoQ | 16.509 % | |
| Return On Assets YoY | 70.971 % | |
| Return On Assets IPRWA | high: 19.773 % SN: 3.204 % median: 2.151 % mean: 1.78 % low: -72.965 % |
|
| Return On Capital Employed (ROCE) | 6.237 % | |
| Return On Equity (ROE) | 0.063 | |
| Return On Equity QoQ | 9.376 % | |
| Return On Equity YoY | 52.951 % | |
| Return On Equity IPRWA | high: 0.769 SN: 0.063 median: 0.035 mean: 0.001 low: -1.731 |
|
| DuPont ROE | 6.576 % | |
| Return On Invested Capital (ROIC) | 5.071 % | |
| Return On Invested Capital QoQ | 10.987 % | |
| Return On Invested Capital YoY | -99.287 % | |
| Return On Invested Capital IPRWA | high: 20.851 % SN: 5.071 % median: 2.936 % mean: 2.884 % low: -30.099 % |
|