Monday, April 16, 2018

Smiths Group Looks Poised For Better Results

Over time Smiths Group (OTCPK:SMGZY) (SMIN.L) has built up a well-earned reputation for always coming up a little short. Although this U.K. conglomerate's historical performance wasn't bad in terms of margins or ROIC, the cash flow generation was weak and it was the sort of story where there was always something a little off. Likewise, while Smiths shares performed okay relative to other U.K. conglomerates, the gap with American industrial conglomerates like 3M (NYSE:MMM), Illinois Tool Works (NYSE:ITW), and Parker-Hannifin (PH) has been sizable.

Quite a bit has changed recently, as new management has returned to a philosophy of active portfolio management and R&D/innovation-driven growth. Although the results aren't showing up just yet in terms of organic revenue growth or margin expansion, I believe Smiths is on the cusp of better results that should make this a solid market-outperformer for the next couple of years.

Read the full article here:
Smiths Group Looks Poised For Better Results

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