Smiths (LON:SMIN) is a large cap technology company that The Company operates in five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. The conglomerate produces a variety of products for markets including air transportation, medical provision, defence and engineering.
For the fiscal year ended 31 July 2019, Smiths Group plc revenues increased 7% to £2.5B and net income before extraordinary items increased 14% to £145M. Good results, but right now the Smiths share price is on the expensive side from a factor perspective, based on its Value Rank of 27. Let's see why this is.
A closer look at Smiths' Value Rank
We can see by using Smiths’ StockReport that the group has a:
- Rolling price to book value of 2.94,
- Trailing twelve month price to earnings ratio of 26.5
- Trailing twelve month price to free cashflow of 34.3
- Rolling dividend yield of 2.67%
- Trailing twelve-month price to sales ratio of 2.78
This combination of financial traits suggests that Smiths stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.
Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Smiths (LON:SMIN) is to these three factors. We go into greater detail on factor investing in this video.
Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.