SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
NASDAQ:SGC - Nasdaq - US8683581024 - Common Stock - Currency: USD
Taking everything into account, SGC scores 5 out of 10 in our fundamental rating. SGC was compared to 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 has a correct valuation and a medium growth rate. SGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SGC had positive earnings in the past year.
In the past year SGC had a positive cash flow from operations.
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 of 2.89%. This is comparable to the rest of the industry: SGC outperforms 56.25% of its industry peers.
Looking at the Return On Equity, with a value of 6.04%, SGC is in line with its industry, outperforming 50.00% of the companies in the same industry.
SGC has a worse Return On Invested Capital (5.73%) than 60.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SGC is significantly below the industry average of 13.58%.
The 3 year average ROIC (4.82%) for SGC is below the current ROIC(5.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 6.04% | ||
| ROIC | 5.73% |
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 2.12%, SGC perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
In the last couple of years the Profit Margin of SGC has declined.
SGC has a worse Operating Margin (3.65%) than 66.67% of its industry peers.
SGC's Operating Margin has declined in the last couple of years.
SGC has a Gross Margin of 38.99%. This is in the lower half of the industry: SGC underperforms 79.17% of its industry peers.
SGC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.65% | ||
| PM (TTM) | 2.12% | ||
| GM | 38.99% |
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
SGC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SGC has been reduced compared to 1 year ago.
The number of shares outstanding for SGC has been increased compared to 5 years ago.
SGC has a better debt/assets ratio than last year.
2.2 Solvency
SGC has an Altman-Z score of 2.90. 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 of 2.90. This is comparable to the rest of the industry: SGC outperforms 54.17% of its industry peers.
SGC has a debt to FCF ratio of 2.97. This is a good value and a sign of high solvency as SGC would need 2.97 years to pay back of all of its debts.
SGC has a Debt to FCF ratio of 2.97. This is in the better half of the industry: SGC outperforms 66.67% of its industry peers.
SGC has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.40, SGC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.97 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.56
WACC10.17%
2.3 Liquidity
SGC has a Current Ratio of 2.68. This indicates that SGC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SGC (2.68) is better than 72.92% of its industry peers.
SGC has a Quick Ratio of 1.73. This is a normal value and indicates that SGC is financially healthy and should not expect problems in meeting its short term obligations.
SGC has a Quick ratio of 1.73. This is amongst the best in the industry. SGC outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.73 |
3. Growth
3.1 Past
The earnings per share for SGC have decreased strongly by -38.36% in the last year.
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 4.12% in the last year.
SGC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.47% yearly.
EPS 1Y (TTM)-38.36%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%-120.83%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.25%
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 16.02% on average per year.
SGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y5.09%
EPS Next 2Y22.71%
EPS Next 3Y17.55%
EPS Next 5Y16.02%
Revenue Next Year3.51%
Revenue Next 2Y4.26%
Revenue Next 3Y4.11%
Revenue Next 5Y3.66%
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
A Price/Earnings ratio of 23.04 indicates a rather expensive valuation of SGC.
Based on the Price/Earnings ratio, SGC is valued a bit more expensive than 60.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. SGC is around the same levels.
Based on the Price/Forward Earnings ratio of 9.31, the valuation of SGC can be described as reasonable.
83.33% of the companies in the same industry are more expensive than SGC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.44. SGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 9.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
SGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGC is cheaper than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.89 | ||
| EV/EBITDA | 7.04 |
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 17.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.52
PEG (5Y)N/A
EPS Next 2Y22.71%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
SGC has a Yearly Dividend Yield of 5.35%, which is a nice return.
The stock price of SGC dropped by -28.63% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
SGC's Dividend Yield is rather good when compared to the industry average which is at 3.80. SGC pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, SGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
5.2 History
The dividend of SGC is nicely growing with an annual growth rate of 7.14%!
SGC has paid a dividend for at least 10 years, which is 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 Years10
Div Non Decr Years11
5.3 Sustainability
SGC pays out 77.34% of its income as dividend. This is not a sustainable payout ratio.
SGC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.34%
EPS Next 2Y22.71%
EPS Next 3Y17.55%
10.37
-0.1 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners46.44%
Inst Owner Change-1.9%
Ins Owners16.44%
Ins Owner Change2.3%
Market Cap170.90M
Analysts85.71
Price Target21.93 (111.48%)
Short Float %2.23%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.35% |
Yearly Dividend0.56
Dividend Growth(5Y)7.14%
DP77.34%
Div Incr Years10
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.22%
Min EPS beat(2)-23.16%
Max EPS beat(2)55.59%
EPS beat(4)2
Avg EPS beat(4)52.18%
Min EPS beat(4)-63.16%
Max EPS beat(4)239.46%
EPS beat(8)4
Avg EPS beat(8)31.23%
EPS beat(12)5
Avg EPS beat(12)20.28%
EPS beat(16)7
Avg EPS beat(16)93.31%
Revenue beat(2)1
Avg Revenue beat(2)0.91%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)3.58%
Revenue beat(4)2
Avg Revenue beat(4)-0.2%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)3.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.87%
Revenue beat(12)6
Avg Revenue beat(12)-0.66%
Revenue beat(16)9
Avg Revenue beat(16)1.59%
PT rev (1m)0%
PT rev (3m)-7.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.5%
EPS NY rev (1m)-5.81%
EPS NY rev (3m)-18.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 9.31 | ||
| P/S | 0.3 | ||
| P/FCF | 5.89 | ||
| P/OCF | 5.11 | ||
| P/B | 0.86 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 7.04 |
EPS(TTM)0.45
EY4.34%
EPS(NY)1.11
Fwd EY10.75%
FCF(TTM)1.76
FCFY16.97%
OCF(TTM)2.03
OCFY19.56%
SpS34.33
BVpS12.07
TBVpS8.82
PEG (NY)4.52
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.89% | ||
| ROE | 6.04% | ||
| ROCE | 6.59% | ||
| ROIC | 5.73% | ||
| ROICexc | 6.09% | ||
| ROICexgc | 7.44% | ||
| OM | 3.65% | ||
| PM (TTM) | 2.12% | ||
| GM | 38.99% | ||
| FCFM | 5.13% |
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-Score8
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.97 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 33.64% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 3.49 | ||
| Cash Conversion | 98.79% | ||
| Profit Quality | 241.53% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.73 | ||
| Altman-Z | 2.9 |
F-Score8
WACC10.17%
ROIC/WACC0.56
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 Y5.09%
EPS Next 2Y22.71%
EPS Next 3Y17.55%
EPS Next 5Y16.02%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.25%
Revenue Next Year3.51%
Revenue Next 2Y4.26%
Revenue Next 3Y4.11%
Revenue Next 5Y3.66%
EBIT growth 1Y6.27%
EBIT growth 3Y-21.13%
EBIT growth 5Y0.95%
EBIT Next Year53.57%
EBIT Next 3Y22.73%
EBIT Next 5Y15.52%
FCF growth 1Y-60.8%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-57.65%
OCF growth 3Y25.09%
OCF growth 5Y10.81%