olivLaw · European equity research
Smiths Group plc SMIN.L
United Kingdom · London Stock Exchange · ISIN GB00B1WY2338 · Vertical: Listed companies from United Kingdom
Smiths Group is a British industrial group with detection technology, components and control systems for aviation, energy and data centres. In fiscal 2026 it sold two divisions, and how it performs on the remaining segments shows how the company's structure is changing.
At the close of 05 Nov 2026, Smiths Group plc (SMIN.L) stock was 26.15 GBP (−2.32% on the day), with market capitalisation 8.2 bn GBP, P/E 4.2 on diluted EPS of 6.26 GBP over the last 12 months, dividend yield 1.82%, beta 0.88, 52-week range 21.18–28.47 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 41.6
- weak (30–45)
- Bollinger (20, 2)
- 26.02 – 27.71
- in the lower half of the band · %B 0.08 · band width 6.3%
- SMA 50 / 200
- 26.72 / 25.76
- mixed trend
- MACD (12, 26, 9)
- -0.06 / -0.01
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −8.1% | −0.6% | −7.5 pp | — |
| 3 months | −2.3% | −4.2% | +1.9 pp | — |
| 6 months | +3.7% | +4.3% | −0.6 pp | — |
| Year to date | +11.2% | +7.5% | +3.7 pp | — |
| 1 year | +2.5% | +9.9% | −7.4 pp | +5.8% |
| 3 years | +62.2% | +49.8% | +12.4 pp | +26.3% |
| 5 years | +82.2% | +42.8% | +39.4 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 3-quarter history (min 4.2, median 24.8, max 27.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 2.8 bn | 1.9 bn | 1.9 bn |
| Revenue YoY | unavailable | −31.7% | +2.1% |
| Net income | 251.0 m | 292.0 m | 2.0 bn |
| Net income YoY | unavailable | +16.3% | +575.3% |
| Diluted EPS | 0.72 | 0.85 | 6.26 |
| Diluted EPS YoY | unavailable | +18.5% | +634.1% |
| net % | 9.0% | 15.4% | 101.8% |
| Free cash flow | 350.0 m | 384.0 m | 177.0 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Jul 2026
- Cash
- 3.0 bn GBP
- Financial debt
- 1.1 bn GBP
- Net debt
- -1.9 bn GBP
- Equity
- 2.6 bn GBP
- Total assets
- 4.8 bn GBP
- Debt / equity
- 0.42x
- Current ratio
- 2.77x
- ROE
- 84.5%
- ROA
- 44.6%
- FCF margin
- 9.1%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 2.8 bn | 1.9 bn | 1.9 bn | esef· 15 Oct 2026verified |
| Operating income | 369.0 m | 347.0 m | 289.0 m | esef· 15 Oct 2026verified |
| Pre-tax income | 327.0 m | 317.0 m | 245.0 m | esef· 15 Oct 2026verified |
| Income tax | 105.0 m | 63.0 m | 88.0 m | esef· 15 Oct 2026verified |
| Net income | 251.0 m | 292.0 m | 2.0 bn | esef· 15 Oct 2026verified |
| Diluted EPS | 0.72 | 0.85 | 6.26 | esef· 15 Oct 2026verified |
| Dividend per share | 0.42 | 0.44 | 0.48 | esef· 15 Oct 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 459.0 m | 195.0 m | 3.0 bn | esef· 15 Oct 2026verified |
| Receivables | 826.0 m | 737.0 m | 464.0 m | esef· 15 Oct 2026verified |
| Inventories | 643.0 m | 586.0 m | 284.0 m | esef· 15 Oct 2026verified |
| Current assets | 2.0 bn | 2.1 bn | 3.7 bn | esef· 15 Oct 2026verified |
| Property, plant & equipment, net | 270.0 m | 244.0 m | 208.0 m | esef· 15 Oct 2026verified |
| Intangibles (excl. goodwill) | 1.5 bn | 1.3 bn | — | esef· 14 Oct 2025verified |
| Total assets | 4.2 bn | 4.0 bn | 4.8 bn | esef· 15 Oct 2026verified |
| Accounts payable | 764.0 m | 679.0 m | 675.0 m | esef· 15 Oct 2026verified |
| Short-term debt | 2.0 m | 3.0 m | 563.0 m | esef· 15 Oct 2026verified |
| Long-term debt | 534.0 m | 556.0 m | 537.0 m | esef· 15 Oct 2026verified |
| Current liabilities | 947.0 m | 941.0 m | 1.4 bn | esef· 15 Oct 2026verified |
| Total liabilities | 2.0 bn | 2.0 bn | 2.2 bn | esef· 15 Oct 2026verified |
| Equity | 2.3 bn | 2.1 bn | 2.6 bn | esef· 15 Oct 2026verified |
| Shares outstanding at year end | 347.2 m | 340.7 m | 313.6 m | esef· 15 Oct 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 418.0 m | 456.0 m | 241.0 m | esef· 15 Oct 2026verified |
| Capex | 68.0 m | 72.0 m | 64.0 m | esef· 15 Oct 2026verified |
| Free cash flow | 350.0 m ≈ | 384.0 m ≈ | 177.0 m ≈ | esef· 15 Oct 2026derived |
| Investing cash flow | 39.0 m | -160.0 m | 3.0 bn | esef· 15 Oct 2026verified |
| Financing cash flow | -269.0 m | -517.0 m | -509.0 m | esef· 15 Oct 2026verified |
| Dividends paid | 147.0 m | 152.0 m | 149.0 m | esef· 15 Oct 2026verified |
| Share repurchases | 70.0 m | 303.0 m | 839.0 m | esef· 15 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 8.2 bn GBP
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 56.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.7% | 46 (vs peers) | 19% |
| Net margin · Quality | 101.8% | 100 (vs peers) | 11% |
| FCF conversion · Quality | 9.0% | 0 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.8x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 4.2x | 89 (vs peers) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 2.2% | 27 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 12.0% | 100 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | 84.2% | 51 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality48/100 · 3/3 factors with a value
- Returns80/100 · 2/2 factors with a value
- Valuation61/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
SMITHS GROUP PLC (SMIN.L). Latest full fiscal year: 2026; data up to 2026-07-31.
Figures computed from the financial statements: revenue 1.9 bn GBP in 2026; YoY growth 2.1%; net margin 101.8%; ROE 85.4%.
The estimated value range is 70.70–109.03 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 90.33 GBP, the price of 26.15 GBP leaves a potential of 245.4% (value / price − 1) and a margin of safety of 71.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 101.8%
- Current ratio: 2.8x
- P/E (TTM): 4.2x
- Shareholder yield (distributions): 12.0%
- The price is below the estimated value range
What contradicts it
- FCF conversion: 9.0%
- FCF yield: 2.2%
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| SMIN.LSmiths Group PLC | 8.2 bn | 4.2 | 85.4% | 101.8% | +2.1% | +7% / +60% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for SMIN.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 15.14 Total return -41% · Per year -41% | 26.80 Total return 4% · Per year 4% | 40.41 Total return 57% · Per year 57% |
| 3 years | 13.98 Total return -42% · Per year -17% | 27.91 Total return 12% · Per year 4% | 46.31 Total return 84% · Per year 23% |
| 5 years | 12.91 Total return -44% · Per year -11% | 29.07 Total return 21% · Per year 4% | 53.08 Total return 116% · Per year 17% |
- Exit P/E± 6.98
- Net margin± 4.88
- Annual revenue growth± 4.11
- Annual dilution± 0.41
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Smiths Group is a British industrial group with detection technology, components and control systems for aviation, energy and data centres. In fiscal 2026 it sold two divisions, and how it performs on the remaining segments shows how the company's structure is changing 1.
SWOT
Strengths
Weaknesses
Opportunities
- Demand for data centres and artificial intelligence programmes could continue to support the semi-test businesses 1.
- If margins approach the medium-term target, earnings per share growth could become more sustained 1.
- The foundation and STEM education partnerships could strengthen ties with universities and communities 1.
Risks
- Organic growth below the medium-term targetmedium
Organic revenue growth for the group was 5.9% in fiscal 2026, close to the lower end of the target range, but energy and construction disruption could slow progress 1.
- Margin pressuremedium
Smiths Interconnect headline operating margin fell organically because of mix effects and higher material costs 1.
- Cash conversionmedium
Cash conversion declined from the prior year due to higher inventory; if the trend continues, it could affect funding of investment 1.
- Workplace safetyhigh
The recordable incident rate rose in fiscal 2026, concentrated in recurring operational risks, which raises questions about the application of critical controls 1.
- Tariffs and tradelow
US tariffs could affect costs and margins, especially in activities with global supply chains 1.
Investment thesis
What would need to be true (bull case)
- If Smiths Interconnect keeps its position in semi-test for data centres, organic growth could remain solid 1.
- Margin improvement through efficiency and the excellence programme could bring the group closer to its medium-term target 1.
- High return on capital shows existing investments are well used, which could support future growth 1.
What would break the thesis
- If energy and construction disruption persists, organic growth could remain below expectations 1.
- Lower cash conversion could limit the capacity to fund investment and shareholder returns 1.
- Divisional sales reduce the comparison base and make it harder to judge the underlying trend of the remaining business 1.
What to watch
- Group headline operating margin against the 21-23% target2027
- Cash conversion against the target of around 100%2027
- Recordable incident rate against the target below 0.4next 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
According to the annual report for the fiscal year ended 31 July 2026, Smiths Group now focuses on the businesses left after this year's sales: Smiths Interconnect, with semi-test for data centres, and Smiths Detection, with detection systems for aviation and other applications 1. The company tracks organic growth, margins and return on capital against medium-term targets 1. The sale of Smiths Interconnect (31 March 2026) and Smiths Detection (30 June 2026) changed the reporting perimeter, making comparisons with earlier years harder 1. The report also notes that part of the sale proceeds was allocated to a foundation, showing a strategy that also has a social impact dimension 1.
Reported results are affected by the fact that the sold divisions contributed only part of fiscal 2026, so reported growth differs from organic growth 1. The strategic direction remains the same: focus on segments with sustained demand and on operational execution, measured through indicators such as operating margin and cash conversion 1. The company also reports non-financial indicators, such as the recordable incident rate and the My Say engagement survey 1.
Segments
Smiths Interconnect
Smiths Interconnect was supported by demand for semi-test linked to artificial intelligence and data centre programmes; the sale of its US sub-systems business unit took place in the first quarter of fiscal 2026 1. Headline operating margin fell organically but rose on a reported basis, as the sale removed a lower-margin part of the business 1.
Market context
Demand in the semi-test and data centre market supported Smiths Interconnect, while aviation detection grew in Smiths Detection 1. The report also flags disruption in global energy markets and US residential construction that affected the group in 2026 1.
If demand for data centres and security screening stays high, new orders could follow, although disruption in energy and construction could limit growth in other segments 1.
Trends
- Data centre and AI demandtailwind
Programmes linked to artificial intelligence and data centres supported Smiths Interconnect through demand for semi-test 1.
- Aviation detectiontailwind
Growth in aviation detection systems, for both original equipment and aftermarket parts, supported Smiths Detection before its sale 1.
- Energy and construction disruptionheadwind
The report notes significant disruption in global energy markets and US residential construction, which limited organic growth 1.
- US tariffsmixed
The effect of US tariffs was cited as pressure on Smiths Detection margins, partly offset by efficiency gains 1.
Competitive position
The annual report does not name competitors, so the list below rests on the business categories mentioned rather than a comparative market share analysis 1.
In semi-test and aviation detection, competition depends on technology, customer relationships and the ability to deliver aftermarket parts; the sources give no quantitative market share data 1.
- Aviation security screening system suppliers
Competition in aviation detection systems, a core activity of Smiths Detection before its sale 1.
- Semiconductor test equipment suppliers
Competition in semiconductor testing for artificial intelligence and data centre programmes, relevant to Smiths Interconnect 1.
- Energy industry component manufacturers
Competition in segments exposed to the global energy market disruption the company describes 1.
- Building equipment suppliers
Competition in US residential construction markets, affected by disruption in fiscal 2026 1.
News & filings
In the press
- Smiths Group ( OTCMKTS : SMGZY ) Shares Cross Below 50 Day Moving Average – Should You Sell ?Surge — GDELT DOC · 22 Oct 2026 · RO
- Două chitare ce aparțineau unui fost membru The Smiths, vândute la licitație cu peste 650.000… - MediafaxMediafax · 18 Sept 2026 · RO
- Două chitare ce aparțineau unui fost membru The Smiths, vândute la licitație cu peste 650.000 de euroMediafax · 18 Sept 2026 · RO
- Două chitare ale lui Johnny Marr, fost membru The Smiths, s-au vândut cu peste 650.000 de euro la licitațieAntena 3 CNN · 18 Sept 2026 · RO
- Johnny Marr to auction off dozens of guitars heard on Smiths classics such as This Charming ManThe Guardian World · 22 Jun 2026 · RO
Annual reports (ESEF)
- Annual report 202615 Oct 2026
- Annual report 202615 Oct 2026
- Annual report 202514 Oct 2025
Sources
- [1] Annual report, fiscal year ended 2026-07-31 (ESEF) · SEC / Smiths Group plc · 31 Jul 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.