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Smiths News PLC (GB:SNWS)
LSE:SNWS

Smiths News PLC (SNWS) AI Stock Analysis

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GBSmiths News PLC
(LSE:SNWS)
56Neutral
Smiths News PLC shows stability in its financial performance, but significant risks arise from its negative equity and financial leverage. The technical analysis suggests limited upward momentum, and while the stock is undervalued and offers a high dividend yield, these positives are overshadowed by the financial risks. Addressing the balance sheet vulnerabilities is crucial for improving its overall attractiveness.

Smiths News PLC (SNWS) vs. S&P 500 (SPY)

Smiths News PLC Business Overview & Revenue Model

Company DescriptionSmiths News PLC (SNWS) is a leading UK-based distributor of newspapers and magazines, operating within the wholesale distribution sector. The company primarily focuses on the delivery of print media to retailers across the United Kingdom, ensuring timely and efficient distribution from publishers to points of sale. It is a significant player in the supply chain for both national and regional publications, serving a wide range of retail outlets including convenience stores, supermarkets, and petrol station forecourts.
How the Company Makes MoneySmiths News PLC generates revenue through the distribution and wholesale of newspapers and magazines. The company earns money by purchasing publications from publishers at a discounted rate and selling them to retailers at a margin. This margin is a key revenue stream, as it represents the difference between the purchase price from publishers and the selling price to retailers. Additionally, the company may generate income from logistics and distribution services, leveraging its extensive network to offer additional delivery solutions. Significant partnerships with major UK publishers and retailers help sustain its business model, ensuring a steady flow of products through its distribution channels. As a crucial intermediary in the print media supply chain, Smiths News PLC capitalizes on its established infrastructure and relationships within the industry to maintain its revenue streams.

Smiths News PLC Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
1.10B1.09B1.09B1.11B1.16B
Gross Profit
72.80M72.50M72.70M73.40M72.90M
EBIT
39.90M38.30M32.40M35.80M35.50M
EBITDA
49.10M47.30M44.90M50.00M32.70M
Net Income Common Stockholders
25.50M25.10M23.40M26.30M12.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.00M37.30M35.30M19.30M50.60M
Total Assets
179.60M195.30M189.40M186.20M232.40M
Total Debt
48.50M63.40M74.70M100.50M163.50M
Net Debt
41.50M26.10M39.40M81.20M112.90M
Total Liabilities
182.90M211.60M221.40M243.90M314.00M
Stockholders Equity
-3.30M-16.30M-32.00M-57.70M-81.60M
Cash FlowFree Cash Flow
14.70M33.00M47.80M39.00M14.10M
Operating Cash Flow
18.10M36.40M49.80M41.40M23.40M
Investing Cash Flow
-4.40M-3.50M12.30M4.40M-4.70M
Financing Cash Flow
-44.00M-30.90M-46.10M-76.90M24.10M

Smiths News PLC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price56.80
Price Trends
50DMA
59.93
Negative
100DMA
57.98
Negative
200DMA
55.86
Positive
Market Momentum
MACD
-1.33
Positive
RSI
42.72
Neutral
STOCH
34.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SNWS, the sentiment is Neutral. The current price of 56.8 is below the 20-day moving average (MA) of 58.93, below the 50-day MA of 59.93, and above the 200-day MA of 55.86, indicating a neutral trend. The MACD of -1.33 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 34.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SNWS.

Smiths News PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBNXT
77
Outperform
£11.63B14.9265.29%2.18%12.83%15.54%
73
Outperform
£25.46B22.6010.18%3.29%
GBMKS
70
Outperform
£7.44B14.5817.19%0.81%6.87%22.36%
64
Neutral
£5.88B43.012.25%5.14%2.66%80.49%
59
Neutral
$30.54B0.25-13.23%4.04%2.36%-49.53%
56
Neutral
£136.06M5.35
9.07%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:SNWS
Smiths News PLC
56.80
13.88
32.34%
GB:MKS
Marks and Spencer
367.80
123.76
50.71%
GB:NXT
Next plc
9,922.00
1,719.99
20.97%
GB:TSCO
Tesco plc
380.10
108.60
40.00%
GB:SBRY
J Sainsbury plc
254.60
18.30
7.74%
GB:WHR
Warehouse REIT PLC
98.20
23.26
31.04%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.