SUPERIOR GROUP OF COS INC (SGC)
US8683581024 - Common Stock
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. The financial health of SGC is average, but there are quite some concerns on its profitability. SGC is quite expensive at the moment. It does show a decent growth rate. Finally SGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SGC was profitable.
SGC had a positive operating cash flow in the past year.
SGC had positive earnings in 4 of the past 5 years.
Of the past 5 years SGC 4 years had a positive operating cash flow.
1.2 Ratios
SGC has a Return On Assets (2.07%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.43%, SGC is in line with its industry, outperforming 46.00% of the companies in the same industry.
SGC's Return On Invested Capital of 5.42% is in line compared to the rest of the industry. SGC outperforms 44.00% of its industry peers.
SGC had an Average Return On Invested Capital over the past 3 years of 6.52%. This is below the industry average of 10.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 4.43% | ||
| ROIC | 5.42% |
ROA(3y)0.44%
ROA(5y)3.02%
ROE(3y)0.26%
ROE(5y)5.97%
ROIC(3y)6.52%
ROIC(5y)8.32%
1.3 Margins
Looking at the Profit Margin, with a value of 1.61%, SGC is doing worse than 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of SGC has declined.
The Operating Margin of SGC (3.58%) is worse than 64.00% of its industry peers.
In the last couple of years the Operating Margin of SGC has declined.
The Gross Margin of SGC (37.46%) is worse than 74.00% of its industry peers.
In the last couple of years the Gross Margin of SGC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.58% | ||
| PM (TTM) | 1.61% | ||
| GM | 37.46% |
OM growth 3Y-28.32%
OM growth 5Y-12.77%
PM growth 3Y-40.81%
PM growth 5Y-19.94%
GM growth 3Y1.48%
GM growth 5Y1.29%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SGC is destroying value.
Compared to 1 year ago, SGC has more 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 3.07. This indicates that SGC is financially healthy and has little risk of bankruptcy at the moment.
SGC's Altman-Z score of 3.07 is fine compared to the rest of the industry. SGC outperforms 64.00% of its industry peers.
SGC has a debt to FCF ratio of 1.26. This is a very positive value and a sign of high solvency as it would only need 1.26 years to pay back of all of its debts.
SGC has a better Debt to FCF ratio (1.26) than 72.00% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SGC is not too dependend on debt financing.
SGC has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.56
WACC9.7%
2.3 Liquidity
A Current Ratio of 2.78 indicates that SGC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.78, SGC is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
SGC has a Quick Ratio of 1.80. This is a normal value and indicates that SGC is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SGC (1.80) is better than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The earnings per share for SGC have decreased by -9.84% in the last year.
Measured over the past years, SGC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.94% on average per year.
SGC shows a decrease in Revenue. In the last year, the revenue decreased by -6.13%.
SGC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.42% yearly.
EPS 1Y (TTM)-9.84%
EPS 3Y-40.03%
EPS 5Y-12.94%
EPS growth Q2Q466.67%
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y1.04%
Revenue growth 5Y9.42%
Revenue growth Q2Q-0.91%
3.2 Future
The Earnings Per Share is expected to grow by 41.48% on average over the next years. This is a very strong growth
SGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.16% yearly.
EPS Next Y16.92%
EPS Next 2Y41.48%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.26%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 30.62, SGC can be considered very expensive at the moment.
SGC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.06, SGC is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.19, the valuation of SGC can be described as expensive.
Based on the Price/Forward Earnings ratio, SGC is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.72. SGC is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 26.19 |
4.2 Price Multiples
SGC's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, SGC is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.8 | ||
| EV/EBITDA | 10.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SGC's earnings are expected to grow with 41.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y41.48%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SGC has a Yearly Dividend Yield of 3.35%.
Compared to an average industry Dividend Yield of 2.90, SGC pays a better dividend. On top of this SGC pays more dividend than 88.00% of the companies listed in the same industry.
SGC's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
5.2 History
On average, the dividend of SGC grows each year by 7.65%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.65%
Div Incr Years3
Div Non Decr Years10
5.3 Sustainability
104.92% of the earnings are spent on dividend by SGC. This is not a sustainable payout ratio.
The dividend of SGC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.92%
EPS Next 2Y41.48%
EPS Next 3YN/A
SUPERIOR GROUP OF COS INC
NASDAQ:SGC (5/2/2024, 7:18:58 PM)
16.84
+0.78 (+4.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap281.40M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.62 | ||
| Fwd PE | 26.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 4.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.58% | ||
| PM (TTM) | 1.61% | ||
| GM | 37.46% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.78 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-9.84%
EPS 3Y-40.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y16.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.13%
Revenue growth 3Y1.04%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y