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Why Fundamental Investors Might Love Smith & Nephew plc (LON:SN.)

Attractive stocks have exceptional fundamentals. In the case of Smith & Nephew plc (LON:SN.), there's is a notable dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Smith & Nephew here.

Excellent balance sheet average dividend payer

SN. is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. SN.'s has produced operating cash levels of 0.63x total debt over the past year, which implies that SN.'s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

LSE:SN. Historical Debt, April 29th 2019
LSE:SN. Historical Debt, April 29th 2019

For those seeking income streams from their portfolio, SN. is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 1.9%.

LSE:SN. Historical Dividend Yield, April 29th 2019
LSE:SN. Historical Dividend Yield, April 29th 2019

Next Steps:

For Smith & Nephew, I've put together three fundamental factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for SN.’s future growth? Take a look at our free research report of analyst consensus for SN.’s outlook.

  2. Historical Performance: What has SN.'s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SN.? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.