Should I buy Smiths Group stock in 2025?

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At HelloSafe, our specialist has been tracking the performance of Smiths Group for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Smiths Group.

What is Smiths Group?

The Smiths Group stock price

The price of Smiths Group stock is rising this week.

Currently, Smiths Group trades at 2,240 pence, up 10 pence in the last 24 hours and showing a weekly gain of 0.99%. The company boasts a market capitalisation of £7.39 billion, with an average daily volume of 1.19 million shares over the past three months. Its price/earnings ratio stands at 25.17, the dividend yield is 1.98%, and its stock beta is a moderate 0.60.

Such low volatility and steady returns may appeal to investors looking for stability and long-term value in the UK market.

Our full analysis of Smiths Group stock

After reviewing Smiths Group's latest financial results and its share performance over the past three years, our team has combined a wide range of analytical sources—from financial indicators and technical signals to market context and competitor data—leveraged by proprietary algorithms built for decision support. The result is an in-depth, expertly-driven assessment that seeks to demystify the true strengths and opportunities behind Smiths Group. So, why might Smiths Group stock once again become a strategic entry point into the industrial technology sector in 2025?

Recent performance and market context

Over the past year, Smiths Group has delivered a striking performance, with its share price surging by more than 30% and currently standing at 2,240 pence as of July 2025. The share has also gained nearly 1% this week alone, signalling robust momentum. This impressive advance has been fuelled by a series of transformative strategic moves, notably the announced divestment of Smiths Interconnect and the planned separation of Smiths Detection, reorienting the business towards its highest-growth, highest-margin segments. Macro conditions add to the positive context: UK manufacturing and industrial engineering are experiencing renewed investment flows, with the FTSE 100 seeing fresh highs as investors shift focus to high-quality, cash-generative British names. Smiths Group particularly stands out thanks to its formidable market position in specialised industrial technologies and operational resilience across economic cycles.

Technical analysis

Technical signals for Smiths Group have been exceptionally constructive in recent periods. Its RSI is well balanced at 56.33, remaining in bullish territory without showing signs of overextension—indicative of a sustainable uptrend rather than speculative excess. The MACD currently records a positive reading of 0.37, another sign of ongoing buying momentum. Moving averages across 20, 50, 100, and 200 days have all flipped into bullish mode, underpinning recent price strength and suggesting a solid technical floor around the 2,225 pence area. All 12 moving average indicators reviewed by our models flag a "Strong Buy" tone, while recent price action emulates a classic bullish continuation pattern with minimal selling pressure despite strategic announcements. These elements combine to support the notion of favourable short- and medium-term price trajectories, especially with 2,255 pence acting as an immediate resistance level and a credible breakout target for near-term traders.

Fundamental analysis

Smiths Group's fundamentals deliver an equally compelling story. Revenues for the last fiscal year reached £3.13 billion, marking an organic rise of 5.4%, squarely in line with management’s ambitious guidance. Operating margin improved to 16.8%, and net profit hit £250 million, reflecting management’s ability to drive operational efficiencies and margin expansion. Earnings per share advanced by 8.3%, underscoring management’s execution and the quality of underlying growth. The current price-to-earnings ratio of 25.17 is well-justified given the strength of recent growth, the resilience displayed in margin management, and the group’s transformation into a more focused, tech-driven industrial leader. Notably, the board has announced a £500 million buyback programme, underpinning board confidence and providing a backstop for valuation. Structurally, Smiths Group enjoys genuine competitive moats: its leadership in mechanical seals (John Crane), safety detection systems (Smiths Detection), and flexible components (Flex-Tek) sets a high bar for international peers. Strategic agility—demonstrated by five acquisitions totalling £255 million at disciplined multiples—augments the company’s growth trajectory.

Volume and liquidity

A daily average trading volume of 1.19 million shares underlines the confidence and depth of institutional and retail participation in Smiths Group. This robust liquidity means that investors can efficiently enter and exit positions, supporting price stability and the prospect of dynamic re-rating as further catalysts emerge. The company’s structure—a substantial free float represented on the LSE, backed by inclusion in both the FTSE 100 and FTSE All Share—enhances its appeal to both domestic and international portfolios.

Catalysts and positive outlook

• Portfolio transformation: Active divestiture of Smiths Detection and Smiths Interconnect to free up resources for high-priority segments.
• Buyback Programme: The £500 million capital return plan highlights management’s conviction in future growth.
• Technological innovation: Expansion into high-performance industrial technologies focused on flow and heat management—fields benefiting from global efficiency and decarbonisation trends.
• ESG focus: Ongoing improvements in operational sustainability and responsible capital allocation, increasingly sought after by institutional investors.
• M&A pipeline: Recent targeted acquisitions executed at attractive EV/EBITDA multiples, buttressing next-generation product development and international expansion.
• Favourable regulatory and sectoral context: As regulatory emphasis grows on infrastructure renewal and high-tech manufacturing, Smiths Group stands to benefit from contracts and public sector partnerships—further reinforced by its reputation for security and reliability.
• Strategic capital deployment: Commitment to returning proceeds to shareholders from completed divestitures ensures an alignment of interests and a shareholder-friendly operational model.

Overall, Smiths Group finds itself at the centre of several powerful long-term tailwinds, from digitisation and automation in the industrial sector to rising demand for resilient, high-margin technology offerings.

Investment strategies

• Short-term: Investors seeking reactive trades may find value in current technical positioning above 2,225 pence, targeting an upside breakout above 2,255 pence, fuelled by near-term news flow and momentum.
• Medium-term: The expected execution of portfolio restructuring, combined with robust Q4 results seasonality, provides strong justification for positions held through the 2025 catalyst calendar, particularly as the buyback programme gathers pace and M&A integration continues.
• Long-term: For investors focused on core growth stories, Smiths Group’s advanced positioning in high-value industrial tech niches, proven adaptability, consistent dividend (current yield at 1.98%), and sustained revenue growth underpin a “steady compounder” thesis. The moderate beta of 0.60 is especially appealing to those seeking above-market returns with lower volatility.

The ideal positioning may indeed be achieved by accumulating at current technical lows or in anticipation of major structural announcements, leveraging periods of short-term consolidation to optimise long-term cost basis.

Is it the right time to buy Smiths Group?

The evidence across technical and fundamental lines of analysis is compelling: Smiths Group appears to represent an excellent opportunity for investors seeking exposure to the UK’s most dynamic industrial technology stories. Key strengths include resilient revenue growth, operational excellence, proactive and value-creating portfolio transformation, strong balance sheet discipline, and abundant liquidity. With further upside signalled by both technical models and robust buyback activity, the stock is entering a highly promising bullish phase—one supported by market consensus, strong institutional backing, and positive sector trends. While no investment is without risk, the fundamentals and outlook for Smiths Group justify renewed interest and a serious look by investors aiming to capture the next phase of UK industrial outperformance. Smiths Group, with its clear vision, strong execution, and visible catalysts, may well be on the cusp of another defining chapter for growth-focused portfolios in 2025.

How to buy Smiths Group stock

Buying Smiths Group stock online is straightforward and secure when using a regulated broker in the UK. You can choose between traditional spot buying, where you own the shares outright, or trading contracts for difference (CFDs), which allows you to speculate on Smiths Group’s price movements with leverage. Both methods are readily accessible via professional platforms, making investment accessible whether you’re interested in long-term growth or short-term trading. For a comparison of leading brokers in the UK, see the table further down the page.

Spot buying

A cash purchase of Smiths Group shares means you become a direct shareholder and benefit from any dividends or voting rights. This is the most common and straightforward method. Fees typically include a fixed commission per order, often ranging from £5 to £10, charged in pounds sterling.

Gain Scenario Example

If the Smiths Group share price is 2,240 pence (or £22.40), you can buy around 44 shares with a £1,000 stake, including a brokerage fee of around £5.

Gain scenario: If the share price rises by 10%, your shares are now worth £1,100. Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Smiths Group shares lets you speculate on price changes without actually owning the underlying shares. You trade on margin, which means you can use leverage and only need to deposit a fraction of the position’s value. Typical costs include the spread (the difference between buy and sell price) and an overnight financing fee if you hold the position for more than a day.

CFD Gain Scenario: 5x Leverage

You open a CFD position on Smiths Group shares, with 5x leverage.
This gives you a market exposure of £5,000 with a £1,000 deposit.

If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before making any investment, take the time to compare brokers’ fees and their terms, as costs can vary significantly from one provider to another. Both spot buying and CFD trading have their own advantages: your choice should match your risk appetite, investment objectives, and preferred strategy. For a detailed comparison of regulated brokers, please consult our broker comparator further down this page.

Our 7 Tips for Buying Smiths Group Stock

The latest news about Smiths Group

Smiths Group shares have recorded a 30% gain over the past year, outperforming the FTSE 100. This impressive growth is supported by solid trading volumes, with a current price of 2,240 pence, and a one-week gain of nearly 1%, reflecting sustained market confidence from UK investors.

The company’s latest annual results confirmed organic sales growth of 5.4%, matching management targets. A robust operating margin of 16.8% and an 8.3% increase in earnings per share offer reassurance, underlining the continued financial health and efficiency of Smiths Group in its core industrial markets across the United Kingdom.

Smiths Group’s decision to divest Smiths Interconnect and separate Smiths Detection focuses its portfolio on UK-led industrial technologies. The £500 million share buyback and anticipated return of sale proceeds are set to benefit UK shareholders, and the market reacted favourably, pushing the stock to new historic highs in the days following these announcements.

Analyst consensus has shifted to a strong buy, driven by positive technical signals and resilient business fundamentals. All major moving averages and technical indicators (RSI, MACD) now point to ongoing upward momentum, strengthening the company’s profile within the UK market and for institutional portfolios.

Guidance for 2025 remains positive, with the company maintaining growth targets despite a recent cyber incident. Smiths Group’s commitment to the UK market, strong governance, and operational resilience provide a constructive outlook, and its eligibility for local tax-efficient investment vehicles further increases its attractiveness for UK-based investors.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.