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Smiths News plc (SNWS) Fair Value & Analysis

Communication Services · GB · Market cap 165M GBX

SN Smiths News plc SNWS · LSE
Price£0.6800
Fair Value£1.97
Upside+189.7%
Quality69/100
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Weak Growth
Thin margins · 2.6% net margin
Low debt · generates free cash flow
8.02% dividend yield
Mixed vs. peers (8/14)
Moderate moat 48/100
Evidence: High Range £1.51 – £2.62 Share as image

Fair value as of: Jul 13, 2026

From 24 valuation models · updated 28 days ago

Share price +5.0% over the past month.

A solid business, screening 190% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£1.51). The market is more pessimistic than our downside scenario.
  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

£0.7010 £0.1775 Fair Value £1.97 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range £0.1775 – £0.7010 · fair‑value band £1.51 – £2.62 · the £0.6800 price screens below the £1.97 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Smiths News plc (SNWS) currently trades at £0.6800, while our model-based Fair Value estimate is £1.97, implying the stock looks roughly 189.7% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Smiths News plc generated revenue of £1.0B at a net margin of 2.7%. Revenue declined 3.9% year over year. It earns a return on equity of 91.3%. Net debt stands at £24.0M. Fundamentals as of Jul 13, 2026

Our scenario range runs from £1.51 (bear case) to £2.62 (bull case); at £0.6800, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Communication Services peers we cover trades at 9% fair-value upside, at 190%, SNWS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £1.33 £1.64 £2.11 80
Residual Income £0.1200 £0.1700 £1.17 76
Rev-Margin DCF £1.38 £2.00 £2.77 74
All 24 models by family
DCF Models
FCF DCF £1.30 £1.63 £2.16 38
Owner Earnings £1.04 £1.30 £1.72 31
5Y Revenue Exit £1.38 £1.97 £2.82 39
5Y EBITDA Exit £1.48 £2.14 £3.01 41
5Y P/E Exit £1.50 £2.17 £2.98 38
10Y Revenue Exit £1.31 £1.69 £2.09 36
10Y EBITDA Exit £1.39 £1.78 £2.19 37
10Y P/E Exit £1.40 £1.80 £2.17 35
Earnings-Based
Graham-Dodd £0.8000 £0.9700 £1.09 54
EPV £0.9600 £1.07 £1.17 59
Dividend Discount
Gordon GGM £0.5000 £0.5400 £0.5900 70
DDM Multi-Stage £0.5000 £0.5800 £0.6800 61
Multiples
P/E Multiple £1.93 £2.57 £3.22 63
P/S Multiple £1.49 £1.99 £2.48 58
P/B Multiple £0.1000 £0.1400 £0.1700 55
EV/EBIT £2.07 £2.76 £3.44 53
EV/EBITDA £1.92 £2.55 £3.18 54
EV/Revenue £1.58 £2.25 £2.91 43
Asset-Based
NCAV (Graham) £0.0200 £0.0300 £0.0400 50
Growth DCF
Growth DCF £1.33 £1.64 £2.11 80
Rev-Margin DCF £1.38 £2.00 £2.77 74
Economic Profit
Residual Income £0.1200 £0.1700 £1.17 76
ROIC Compounder £0.9600 £1.08 £1.17 72
Growth Earnings
Growth-Adj P/E £1.36 £1.94 £2.53 68

Widest divergence: Multiples (£2.25) versus Asset-Based (£0.0300). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.0B GBX
Revenue growth (YoY) -3.9%
Net margin 2.6%
Return on equity 13.5%
Free cash flow 42.7M GBX FY2025
P/E ratio 6.2
More key figures
Operating margin 3.5%
EPS (TTM) £0.1100
Dividend yield 8.0%
EPS growth (YoY) -11.1%
Net debt 24.0M GBX FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 67 · Market factors (momentum, volatility) 76

Profitability 78
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 52
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 87
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Smiths News plc, together with its subsidiaries, engages in the distributing of newspapers and magazines in the United Kingdom and internationally. The company offers plastic and cardboard waste; and is involved in recycling activities. It also supplies printed and digital media content airlines and travel points.

Full company description

Smiths News plc, together with its subsidiaries, engages in the distributing of newspapers and magazines in the United Kingdom and internationally. The company offers plastic and cardboard waste; and is involved in recycling activities. It also supplies printed and digital media content airlines and travel points. In addition, the company offers field-based merchandising, supply chain auditing, and compliance solutions. Further, it provides logistics and warehouse solutions, final mile delivery, storage, smiths news marketplace, field sales, customer services, print media, and recycling collections services. The company was formerly known as Connect Group PLC and changed its name to Smiths News plc in November 2020. Smiths News plc was incorporated in 2004 and is headquartered in Swindon, United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Smiths News plc reported revenue of £1.1B in FY2025 versus £1.1B in FY2021, a compound −1.0%/yr. Reported net income was £28.3M in FY2025, compounding +1.8%/yr from FY2021.

Growth Quality 38/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£1.1B
Latest YoY
−3.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.8%
Avg. growth/yr (39Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.5%
Revenue −1.0%/yr
FY21 £1.1B
FY22 £1.1B
FY23 £1.1B
FY24 £1.1B
FY25 £1.1B
Net income +1.8%/yr
FY21 £26.3M
FY22 £23.4M
FY23 £25.1M
FY24 £25.5M
FY25 £28.3M
Character of growth · EPS growth decomposed (2014-2025) −2.2 % p.a.
Revenue per share −6.6 pp

of which total revenue −5.8 pp · buybacks/dilution −0.7 pp

EBIT margin +4.9 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −0.1 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Smiths News plc Fair Value". https://www.fairvalue-calculator.com/stock/SNWS

Peer Group

Publishing · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside +190% · Top 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 3% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -4% · Below median
Dividend yield (TTM) 8.0% · Top 25%
Debt / equity 0.18× · Higher than 75% of peers

Valuation Multiples vs Publishing median · lower = cheaper

P/E (TTM) 6.2× · Cheaper than 75% of peers
P/B 23.38× · Pricier than 75% of peers
P/S (TTM) 0.21× · Cheaper than 75% of peers
P/FCF 5.2× · Pricier than median
EV/EBITDA 5.1× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 38
FUTURE 0 · sector 0
PAST 54 · sector 21
HEALTH 91 · sector 99
DIVIDEND 100 · sector 57

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Smiths News plc (SNWS) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of £1.97 versus a price of £0.6800, about +190% (undervalued).
What is the fair value of SNWS?
Our model-based fair value for Smiths News plc is £1.97 (as of Jul 13, 2026), built from audited fundamentals. The current price is £0.6800.
What is the quality score of SNWS?
Smiths News plc has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Smiths News plc (SNWS)?
Smiths News plc reported trailing-twelve-month revenue of about £1.0B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of SNWS?
The net profit margin of Smiths News plc is about 2.7%, meaning it keeps roughly 2.7% of revenue as net income. Based on the latest reported figures.
Does Smiths News plc pay a dividend?
Smiths News plc currently shows a dividend yield of about 8.36% relative to its recent price (as of Jul 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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