SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
NASDAQ:SGC - Nasdaq - US8683581024 - Common Stock - Currency: USD
SGC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Textiles, Apparel & Luxury Goods industry. SGC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SGC has a decent growth rate and is not valued too expensively. SGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SGC was profitable.
In the past year SGC had a positive cash flow from operations.
Of the past 5 years SGC 4 years were profitable.
Of the past 5 years SGC 4 years had a positive operating cash flow.
1.2 Ratios
SGC's Return On Assets of 1.78% is in line compared to the rest of the industry. SGC outperforms 48.00% of its industry peers.
SGC's Return On Equity of 3.77% is in line compared to the rest of the industry. SGC outperforms 50.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.00%, SGC is doing worse than 62.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SGC is significantly below the industry average of 11.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.77% | ||
| ROIC | 4% |
ROA(3y)-0.68%
ROA(5y)2.93%
ROE(3y)-2.05%
ROE(5y)5.64%
ROIC(3y)4.82%
ROIC(5y)8.02%
1.3 Margins
With a Profit Margin value of 1.30%, SGC perfoms like the industry average, outperforming 46.00% of the companies in the same industry.
SGC's Profit Margin has declined in the last couple of years.
SGC has a Operating Margin of 2.59%. This is in the lower half of the industry: SGC underperforms 66.00% of its industry peers.
In the last couple of years the Operating Margin of SGC has declined.
SGC's Gross Margin of 38.25% is on the low side compared to the rest of the industry. SGC is outperformed by 76.00% of its industry peers.
SGC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.59% | ||
| PM (TTM) | 1.3% | ||
| GM | 38.25% |
OM growth 3Y-22.49%
OM growth 5Y-6.94%
PM growth 3Y-27.09%
PM growth 5Y-7.96%
GM growth 3Y4.03%
GM growth 5Y2.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SGC is destroying value.
Compared to 1 year ago, SGC has less shares outstanding
SGC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SGC has an improved debt to assets ratio.
2.2 Solvency
SGC has an Altman-Z score of 2.83. This is not the best score and indicates that SGC is in the grey zone with still only limited risk for bankruptcy at the moment.
SGC has a Altman-Z score (2.83) which is in line with its industry peers.
The Debt to FCF ratio of SGC is 5.60, which is a neutral value as it means it would take SGC, 5.60 years of fcf income to pay off all of its debts.
SGC's Debt to FCF ratio of 5.60 is in line compared to the rest of the industry. SGC outperforms 54.00% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that SGC is not too dependend on debt financing.
SGC has a Debt to Equity ratio of 0.46. This is comparable to the rest of the industry: SGC outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.48
WACC8.42%
2.3 Liquidity
A Current Ratio of 2.90 indicates that SGC has no problem at all paying its short term obligations.
SGC has a Current ratio of 2.90. This is in the better half of the industry: SGC outperforms 80.00% of its industry peers.
A Quick Ratio of 1.85 indicates that SGC should not have too much problems paying its short term obligations.
With an excellent Quick ratio value of 1.85, SGC belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for SGC have decreased strongly by -38.36% in the last year.
The Earnings Per Share has been decreasing by -1.55% on average over the past years.
The Revenue has been growing slightly by 2.28% in the past year.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.36%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%-120.83%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.26%
3.2 Future
Based on estimates for the next years, SGC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.55% on average per year.
SGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y-42.13%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
EPS Next 5Y10.55%
Revenue Next Year-1.31%
Revenue Next 2Y1.46%
Revenue Next 3Y2.35%
Revenue Next 5Y2.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.22, SGC is valued on the expensive side.
SGC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SGC to the average of the S&P500 Index (26.82), we can say SGC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.34, the valuation of SGC can be described as very reasonable.
SGC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SGC is cheaper than 74.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.21, SGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 11.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SGC is on the same level as its industry peers.
82.00% of the companies in the same industry are more expensive than SGC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 8.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.69%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
SGC has a Yearly Dividend Yield of 5.15%, which is a nice return.
SGC's Dividend Yield is rather good when compared to the industry average which is at 3.70. SGC pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, SGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
5.2 History
On average, the dividend of SGC grows each year by 7.14%, which is quite nice.
SGC has been paying a dividend for at least 10 years, so it has a reliable track record.
SGC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.14%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SGC pays out 125.91% of its income as dividend. This is not a sustainable payout ratio.
The dividend of SGC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP125.91%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
9.55
-0.1 (-1.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners45.47%
Inst Owner Change-0.41%
Ins Owners17.03%
Ins Owner Change4.56%
Market Cap152.61M
Analysts85
Price Target17.34 (81.57%)
Short Float %3.26%
Short Ratio7.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
Yearly Dividend0.56
Dividend Growth(5Y)7.14%
DP125.91%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.78%
Min EPS beat(2)-140.41%
Max EPS beat(2)-23.16%
EPS beat(4)1
Avg EPS beat(4)-42.79%
Min EPS beat(4)-140.41%
Max EPS beat(4)55.59%
EPS beat(8)4
Avg EPS beat(8)20.97%
EPS beat(12)5
Avg EPS beat(12)9.96%
EPS beat(16)6
Avg EPS beat(16)79.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)3.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)5
Avg Revenue beat(12)-1.24%
Revenue beat(16)8
Avg Revenue beat(16)0.61%
PT rev (1m)0%
PT rev (3m)-20.93%
EPS NQ rev (1m)-12.26%
EPS NQ rev (3m)-46.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-44.94%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-3.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.22 | ||
| Fwd PE | 11.34 | ||
| P/S | 0.27 | ||
| P/FCF | 8.92 | ||
| P/OCF | 6.94 | ||
| P/B | 0.78 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 8.29 |
EPS(TTM)0.45
EY4.71%
EPS(NY)0.84
Fwd EY8.82%
FCF(TTM)1.07
FCFY11.21%
OCF(TTM)1.38
OCFY14.41%
SpS35.29
BVpS12.17
TBVpS8.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.77% | ||
| ROCE | 4.61% | ||
| ROIC | 4% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 5.19% | ||
| OM | 2.59% | ||
| PM (TTM) | 1.3% | ||
| GM | 38.25% | ||
| FCFM | 3.03% |
ROA(3y)-0.68%
ROA(5y)2.93%
ROE(3y)-2.05%
ROE(5y)5.64%
ROIC(3y)4.82%
ROIC(5y)8.02%
ROICexc(3y)5.12%
ROICexc(5y)8.3%
ROICexgc(3y)6.18%
ROICexgc(5y)11.34%
ROCE(3y)5.55%
ROCE(5y)9.23%
ROICexcg growth 3Y-20.14%
ROICexcg growth 5Y-4.61%
ROICexc growth 3Y-16.46%
ROICexc growth 5Y-0.04%
OM growth 3Y-22.49%
OM growth 5Y-6.94%
PM growth 3Y-27.09%
PM growth 5Y-7.96%
GM growth 3Y4.03%
GM growth 5Y2.65%
F-Score5
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 37.23% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.26% | ||
| Profit Quality | 233.19% | ||
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 2.83 |
F-Score5
WACC8.42%
ROIC/WACC0.48
Cap/Depr(3y)51.29%
Cap/Depr(5y)98.06%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.36%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%-120.83%
EPS Next Y-42.13%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
EPS Next 5Y10.55%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.26%
Revenue Next Year-1.31%
Revenue Next 2Y1.46%
Revenue Next 3Y2.35%
Revenue Next 5Y2.61%
EBIT growth 1Y-34.51%
EBIT growth 3Y-21.13%
EBIT growth 5Y0.95%
EBIT Next Year34.32%
EBIT Next 3Y16.04%
EBIT Next 5Y11.82%
FCF growth 1Y-23.1%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-29.46%
OCF growth 3Y25.09%
OCF growth 5Y10.81%