olivLaw · European equity research
Smiths News plc SNWS.L
United Kingdom · London Stock Exchange · ISIN GB00B17WCR61 · Vertical: Listed companies from United Kingdom
Smiths News plc is the UK's largest news wholesaler, delivering early in the morning to about 22,400 outlets each day. In fiscal 2025 the company reported revenue of £1,064.0 million, and its current focus is extending into collectables and recycling as new regulation takes effect.
At the close of 05 Nov 2026, Smiths News plc (SNWS.L) stock was 0.69 GBP (−4.99% on the day), with market capitalisation 165.9 m GBP, P/E 6.1 on diluted EPS of 0.11 GBP over the last 12 months, dividend yield 10.48%, beta 0.41, 52-week range 0.62–0.84 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)
- 32.1
- weak (30–45)
- Bollinger (20, 2)
- 0.71 – 0.86
- below the lower band · %B -0.16 · band width 19.5%
- SMA 50 / 200
- 0.74 / 0.69
- mixed trend
- MACD (12, 26, 9)
- 0.01 / 0.02
- 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 | −7.0% | −0.6% | −6.4 pp | — |
| 3 months | −6.0% | −4.2% | −1.9 pp | — |
| 6 months | +3.3% | +4.3% | −1.0 pp | — |
| Year to date | −9.5% | +7.5% | −17.0 pp | — |
| 1 year | +0.3% | +9.9% | −9.6 pp | +5.8% |
| 3 years | +38.6% | +49.8% | −11.3 pp | +26.3% |
| 5 years | +72.6% | +42.8% | +29.8 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 100 percentile of its own 3-quarter history (min 4.3, median 5.1, max 5.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 1.1 bn |
| Revenue YoY | unavailable | +1.1% | −3.6% |
| Net income | 25.1 m | 25.5 m | 28.3 m |
| Net income YoY | unavailable | +1.6% | +11.0% |
| Diluted EPS | 0.10 | 0.10 | 0.11 |
| Diluted EPS YoY | unavailable | +2.0% | +10.8% |
| net % | 2.3% | 2.3% | 2.7% |
| Free cash flow | 33.8 m | 19.0 m | 45.5 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Aug 2025
- Cash
- 8.2 m GBP
- Financial debt
- 1.7 m GBP
- Net debt
- -6.5 m GBP
- Equity
- 9.5 m GBP
- Total assets
- 174.0 m GBP
- Debt / equity
- 0.18x
- Current ratio
- 0.94x
- ROE
- unavailable
- ROA
- 16.0%
- FCF margin
- 4.3%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.1 bn | 1.1 bn | 1.1 bn | esef· 16 Dec 2025verified |
| Cost of revenue | 1.0 bn | 1.0 bn | 988.9 m | esef· 16 Dec 2025verified |
| Gross profit | 72.5 m | 73.2 m | 75.1 m | esef· 16 Dec 2025verified |
| Operating income | 38.3 m | 40.0 m | 41.2 m | esef· 16 Dec 2025verified |
| Interest expense | 6.5 m | 6.3 m | 3.6 m | esef· 16 Dec 2025verified |
| Pre-tax income | 31.8 m | 34.1 m | 37.9 m | esef· 16 Dec 2025verified |
| Income tax | 6.7 m | 8.6 m | 9.6 m | esef· 16 Dec 2025verified |
| Net income | 25.1 m | 25.5 m | 28.3 m | esef· 16 Dec 2025verified |
| Diluted EPS | 0.10 | 0.10 | 0.11 | esef· 16 Dec 2025verified |
| Dividend per share | 0.04 | 0.07 | 0.07 | esef· 16 Dec 2025derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 37.3 m | 7.0 m | 8.2 m | esef· 16 Dec 2025verified |
| Receivables | 101.1 m | 106.2 m | 103.4 m | esef· 16 Dec 2025verified |
| Inventories | 17.7 m | 18.0 m | 12.6 m | esef· 16 Dec 2025verified |
| Current assets | 156.7 m | 132.1 m | 125.1 m | esef· 16 Dec 2025verified |
| Property, plant & equipment, net | 8.8 m | 9.7 m | 10.7 m | esef· 16 Dec 2025verified |
| Total assets | 195.3 m | 179.6 m | 174.0 m | esef· 16 Dec 2025verified |
| Accounts payable | 141.5 m | 128.5 m | 127.2 m | esef· 16 Dec 2025verified |
| Short-term debt | 10.0 m | 0 | — | esef· 18 Dec 2024verified |
| Long-term debt | 30.2 m | 17.6 m | 1.7 m | esef· 16 Dec 2025verified |
| Current liabilities | 158.9 m | 135.3 m | 133.3 m | esef· 16 Dec 2025verified |
| Total liabilities | 211.6 m | 182.9 m | 164.5 m | esef· 16 Dec 2025verified |
| Equity | -16.3 m | -3.3 m | 9.5 m | esef· 16 Dec 2025verified |
| Shares outstanding at year end | 236.8 m | 240.6 m | 241.9 m | esef· 16 Dec 2025derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 36.4 m | 22.4 m | 49.4 m | esef· 16 Dec 2025verified |
| Capex | 2.6 m | 3.4 m | 3.9 m | esef· 16 Dec 2025verified |
| Free cash flow | 33.8 m ≈ | 19.0 m ≈ | 45.5 m ≈ | esef· 16 Dec 2025derived |
| Investing cash flow | -3.5 m | -3.8 m | -4.1 m | esef· 16 Dec 2025verified |
| Financing cash flow | -30.9 m | -48.9 m | -44.1 m | esef· 16 Dec 2025verified |
| Dividends paid | 9.8 m | 10.8 m | 17.4 m | esef· 16 Dec 2025verified |
≈ 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: 85 / 100
A scoring methodology on indicators and valuation, not investment advice.
score >= 65 · margin_of_safety >= 0.15 · agreement in ['high', 'medium']
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 165.9 m GBP
Key indicators
Coverage and freshness
The data is older than the freshness threshold.
Score by group
- Quality80
- Returns100
- Balance sheet65
- Valuation94
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
Attractive profile · Score 85/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 597.4% | 100 (vs peers) | 17% |
| Net margin · Quality | 2.7% | 26 (vs peers) | 10% |
| FCF conversion · Quality | 160.8% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 11.4x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.9x | 12 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 5.9x | 89 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 27.4% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 10.5% | 100 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 38.2% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet65/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality80/100 · 3/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation94/100 · 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 NEWS PLC (SNWS.L). Latest full fiscal year: 2025; data up to 2025-08-31.
Figures computed from the financial statements: revenue 1.1 bn GBP in 2025; YoY growth -3.6%; net margin 2.7%; ROE 912.9%.
The estimated value range is 1.32–2.04 GBP per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 1.69 GBP, the price of 0.69 GBP leaves a potential of 146.0% (value / price − 1) and a margin of safety of 59.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 85/100, methodological classification: attractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 597.4%
- FCF conversion: 160.8%
- Interest coverage: 11.4x
- P/E (TTM): 5.9x
- FCF yield: 27.4%
- Shareholder yield (distributions): 10.5%
- Payout ratio (FCF): 38.2%
- The price is below the estimated value range
What contradicts it
- Net margin: 2.7%
- Current ratio: 0.9x
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, 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% |
| 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% |
| SNWS.LSmiths News PLC | 165.9 m | 5.9 | 912.9% | 2.7% | −3.6% | 0% / +45% |
| 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 SNWS.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 | 0.37 Total return -38% · Per year -38% | 0.66 Total return 7% · Per year 7% | 1.00 Total return 58% · Per year 58% |
| 3 years | 0.31 Total return -34% · Per year -13% | 0.61 Total return 20% · Per year 6% | 1.03 Total return 88% · Per year 24% |
| 5 years | 0.25 Total return -31% · Per year -7% | 0.57 Total return 32% · Per year 6% | 1.06 Total return 119% · Per year 17% |
- Exit P/E± 0.15
- Net margin± 0.11
- Annual revenue growth± 0.10
- Annual dilution± 0.01
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 News plc is the UK's largest news wholesaler, delivering early in the morning to about 22,400 outlets each day 1. In fiscal 2025 the company reported revenue of £1,064.0 million 1, and its current focus is extending into collectables and recycling as new regulation takes effect.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Structural decline of printhigh
If volumes keep falling faster than efficiencies, core revenue could weaken 1.
- Dependence on publisher contractshigh
The relationship with publishers and national distributors is essential, and losing contracts would have an important effect 1.
- Execution of new servicesmedium
Expansion in recycling requires capacity investment, and delays could affect returns 1.
- Labour and operating costsmedium
Wage inflation and transport costs can pressure operating margins 1.
- Shareholder concentrationlow
A small number of major shareholders can influence decisions, and share liquidity may be limited 1.
Investment thesis
What would need to be true (bull case)
- If recycling expands as planned, the service could become a new revenue source built on an existing customer base 1.
- A national leadership position with a network that is hard to replicate could support market share over the long term 1.
- A solid balance sheet and high free cash flow provide flexibility for investment and distributions 1.
What to watch
- Revenue trend in newspapers and magazinesnext 10-K
- Volume growth at Smiths News Recycle2027
- Free cash flow and bank net cash positionnext 10-K
- Outcome of the shareholder vote on the revised remuneration policy2026
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
Smiths News plc operates as a wholesale distributor of newspapers and magazines and offers early morning end to end supply chain services 1. Its model rests on long-term contracts with publishers and an asset light approach in which final mile deliveries are carried out by contractors 1. The company says it retains value through added services and by extending into further product categories 1.
Segments
Newspapers and magazines
This is the core segment, generating most of the revenue, and its volumes are declining gradually, offset by price increases and efficiencies 1. The company also pursues higher-margin collectables, which contributed to fiscal 2025 results 1.
Market context
The company notes that demand for printed media is structurally declining, though the market remains large and relatively predictable 1. It holds a 55% market share in news and magazine distribution in the UK 1. Demand for recycling solutions and business final mile delivery is growing, according to the company 1.
Trends
- Decline of printed mediaheadwind
Volumes of newspapers and magazines keep falling, reducing core revenue, which the company offsets through pricing and efficiencies 1.
- Recycling legislationtailwind
New rules in England require businesses to arrange waste collection, and this extends to all businesses by 2027, which could lift demand for Smiths News Recycle 1.
- B2B e-commercetailwind
Growing demand for fast business deliveries could open opportunities for the early morning network 1.
- Operating costs and inflationmixed
Inflation and operating costs pressure margins, making efficiencies necessary to offset them 1.
Competitive position
The company operates as a specialist distributor in the UK and competes mainly on early morning service quality and network density 1. The supplied sources do not name direct competitors, so none are named here.
- Other UK newspaper distributors
The sources do not name specific competitors; the company presents itself as the national leader in distribution.
- Courier and B2B delivery services
The company notes that in-house delivery operations also compete for final mile growth, without a specific name in the sources.
- Waste collection and recycling operators
The recycling service enters a market with other providers, not identified in the sources.
- Retailers managing their own stock
Large chains could take distribution in-house, which could affect volumes.
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 202516 Dec 2025
- Annual report 202516 Dec 2025
- Annual report 202418 Dec 2024
Sources
- [1] Annual report, fiscal year ended 2025-08-31 (ESEF) · SEC / Smiths News plc · 31 Aug 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.