SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
NASDAQ:SGC - Nasdaq - US8683581024 - Common Stock - Currency: USD
Overall SGC gets a fundamental rating of 4 out of 10. We evaluated SGC against 48 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 not valued too expensively and it also shows 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.
In the past year SGC had a positive cash flow from operations.
SGC had positive earnings in 4 of the past 5 years.
SGC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SGC has a Return On Assets (1.78%) which is comparable to the rest of the industry.
With a Return On Equity value of 3.77%, SGC perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
SGC's Return On Invested Capital of 4.00% is on the low side compared to the rest of the industry. SGC is outperformed by 66.67% of its industry peers.
SGC had an Average Return On Invested Capital over the past 3 years of 4.82%. This is significantly below the industry average of 11.45%.
| 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 41.67% 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 68.75% of its industry peers.
SGC's Operating Margin has declined in the last couple of years.
SGC's Gross Margin of 38.25% is on the low side compared to the rest of the industry. SGC is outperformed by 79.17% of its industry peers.
In the last couple of years the Gross Margin of SGC has grown nicely.
| 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
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 less shares outstanding
Compared to 5 years ago, SGC has more shares outstanding
The debt/assets ratio for SGC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.86 indicates that SGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SGC (2.86) is comparable to the rest of the industry.
SGC has a debt to FCF ratio of 5.60. This is a neutral value as SGC would need 5.60 years to pay back of 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 52.08% 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 (0.46) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.45
WACC8.8%
2.3 Liquidity
SGC has a Current Ratio of 2.90. This indicates that SGC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.90, SGC is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
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 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
SGC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -38.36%.
Measured over the past years, SGC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.55% on average per year.
Looking at the last year, SGC shows a small growth in Revenue. The Revenue has grown by 2.28% in the last year.
Measured over the past years, SGC shows a quite strong growth in Revenue. The Revenue has been growing by 8.47% on average per year.
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.
Based on estimates for the next years, SGC will show a small growth in Revenue. The Revenue will grow by 2.61% on average per year.
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.
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
SGC is valuated rather expensively with a Price/Earnings ratio of 22.89.
The rest of the industry has a similar Price/Earnings ratio as SGC.
When comparing the Price/Earnings ratio of SGC to the average of the S&P500 Index (27.15), we can say SGC is valued inline with the index average.
With a Price/Forward Earnings ratio of 12.23, SGC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGC indicates a somewhat cheap valuation: SGC is cheaper than 70.83% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SGC to the average of the S&P500 Index (21.60), we can say SGC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 12.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGC is valued a bit cheaper than 60.42% of the companies in the same industry.
SGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGC is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 8.67 |
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 5.46%, which is a nice return.
SGC's Dividend Yield is rather good when compared to the industry average which is at 3.86. SGC pays more dividend than 89.58% of the companies in the same industry.
SGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
The dividend of SGC is nicely growing with an annual growth rate of 7.14%!
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%
10.3
+0.01 (+0.1%)
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-4.12%
Ins Owners17.03%
Ins Owner Change2.82%
Market Cap164.59M
Analysts85
Price Target17.34 (68.35%)
Short Float %3.6%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
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)-20.93%
PT rev (3m)-20.93%
EPS NQ rev (1m)-35.42%
EPS NQ rev (3m)-45.61%
EPS NY rev (1m)-37.42%
EPS NY rev (3m)-48.13%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.89 | ||
| Fwd PE | 12.23 | ||
| P/S | 0.29 | ||
| P/FCF | 9.62 | ||
| P/OCF | 7.48 | ||
| P/B | 0.85 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.45
EY4.37%
EPS(NY)0.84
Fwd EY8.18%
FCF(TTM)1.07
FCFY10.39%
OCF(TTM)1.38
OCFY13.36%
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 | 2.86 |
F-Score5
WACC8.8%
ROIC/WACC0.45
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%