---
title: "With EPS Growth And More, Smiths Group (LON:SMIN) Makes An Interesting Case"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286204719.md"
description: "Smiths Group (LON:SMIN) has shown promising growth with a 26% annual increase in earnings per share (EPS) over the past three years. Despite revenue growth, EBIT margins have faced challenges. Insider buying, including a significant purchase by a director, indicates confidence in the company's future. The CEO's compensation is below the median for similar companies, suggesting alignment with shareholder interests. Overall, Smiths Group presents a compelling case for growth investors, although potential risks should be noted."
datetime: "2026-05-13T06:01:40.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286204719.md)
  - [en](https://longbridge.com/en/news/286204719.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286204719.md)
---

# With EPS Growth And More, Smiths Group (LON:SMIN) Makes An Interesting Case

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like **Smiths Group** (LON:SMIN). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

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## How Fast Is Smiths Group Growing?

If you believe that markets are even vaguely efficient, then over the long term you'd expect a company's share price to follow its earnings per share (EPS) outcomes. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Shareholders will be happy to know that Smiths Group's EPS has grown 26% each year, compound, over three years. As a general rule, we'd say that if a company can keep up _that_ sort of growth, shareholders will be beaming.

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While Smiths Group did well to grow revenue over the last year, EBIT margins were dampened at the same time. If EBIT margins are able to stay balanced and this revenue growth continues, then we should see brighter days ahead.

You can take a look at the company's revenue and earnings growth trend, in the chart below. To see the actual numbers, click on the chart.

LSE:SMIN Earnings and Revenue History May 13th 2026

See our latest analysis for Smiths Group

Fortunately, we've got access to analyst forecasts of Smiths Group's _future_ profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

## Are Smiths Group Insiders Aligned With All Shareholders?

It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

We note that Smiths Group insiders spent UK£130k on stock, over the last year; in contrast, we didn't see any selling. That paints the company in a nice light, as it signals that its leaders are feeling confident in where the company is heading. We also note that it was the Independent Non-Executive Director, Alister Cowan, who made the biggest single acquisition, paying UK£113k for shares at about UK£22.68 each.

Recent insider purchases of Smiths Group stock is not the only way management has kept the interests of the general public shareholders in mind. To be specific, the CEO is paid modestly when compared to company peers of the same size. Our analysis has discovered that the median total compensation for the CEOs of companies like Smiths Group, with market caps over UK£5.9b, is about UK£5.4m.

The Smiths Group CEO received UK£4.4m in compensation for the year ending July 2025. That is actually below the median for CEO's of similarly sized companies. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense.

## Does Smiths Group Deserve A Spot On Your Watchlist?

For growth investors, Smiths Group's raw rate of earnings growth is a beacon in the night. And that's not the only positive either. We have both insider buying and reasonable and remuneration to consider. All in all, this stock is worth the time to delve deeper into the details. You still need to take note of risks, for example - Smiths Group has **1 warning sign** we think you should be aware of.

The good news is that Smiths Group is not the only stock with insider buying. Here's a list of small cap, undervalued companies in GB with insider buying in the last three months!

_Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction._

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## Related News & Research

- [Smiths Group (LON:SMIN) Insider Purchases £1,772.40 in Stock](https://longbridge.com/en/news/284907452.md)
- [UK engineer Smiths Group trims revenue outlook on hit to Middle East sales](https://longbridge.com/en/news/287179053.md)
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