SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
USA - NASDAQ:SGC - US8683581024 - Common Stock
10.42 USD
-0.19 (-1.79%)
10.42 USD
0 (0%)
Taking everything into account, SGC scores 4 out of 10 in our fundamental rating. SGC was compared to 48 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 correct valuation and a medium growth rate. Finally 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.
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
The Return On Assets of SGC (1.96%) is worse than 62.50% of its industry peers.
SGC's Return On Equity of 4.31% is in line compared to the rest of the industry. SGC outperforms 41.67% of its industry peers.
With a Return On Invested Capital value of 4.24%, SGC is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for SGC is significantly below the industry average of 12.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 4.31% | ||
| ROIC | 4.24% |
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 1.44%, SGC is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of SGC has declined.
SGC has a Operating Margin of 2.69%. This is in the lower half of the industry: SGC underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of SGC has declined.
The Gross Margin of SGC (38.23%) is worse than 72.92% of its industry peers.
In the last couple of years the Gross Margin of SGC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.69% | ||
| PM (TTM) | 1.44% | ||
| GM | 38.23% |
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
An Altman-Z score of 2.80 indicates that SGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.80, SGC perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
The Debt to FCF ratio of SGC is 6.67, which is on the high side as it means it would take SGC, 6.67 years of fcf income to pay off all of its debts.
SGC has a Debt to FCF ratio of 6.67. This is comparable to the rest of the industry: SGC outperforms 47.92% of its industry peers.
SGC has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.49, SGC is in line with its industry, outperforming 52.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.39
WACC10.75%
2.3 Liquidity
A Current Ratio of 2.71 indicates that SGC has no problem at all paying its short term obligations.
SGC has a better Current ratio (2.71) than 79.17% of its industry peers.
SGC has a Quick Ratio of 1.70. 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 (1.70) is better than 89.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
SGC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.09%.
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 4.03% 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)-26.09%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%150%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%9.34%
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 13.00% on average per year.
SGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.00% yearly.
EPS Next Y-36.67%
EPS Next 2Y6.18%
EPS Next 3Y13.28%
EPS Next 5Y13%
Revenue Next Year0.63%
Revenue Next 2Y1.99%
Revenue Next 3Y2.89%
Revenue Next 5Y3%
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
The Price/Earnings ratio is 20.43, which indicates a rather expensive current valuation of SGC.
SGC's Price/Earnings ratio is in line with the industry average.
SGC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
SGC is valuated correctly with a Price/Forward Earnings ratio of 12.49.
72.92% 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 23.29. SGC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 12.49 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SGC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGC indicates a rather cheap valuation: SGC is cheaper than 81.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.17 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
A more expensive valuation may be justified as SGC's earnings are expected to grow with 13.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.18%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.05%, SGC is a good candidate for dividend investing.
SGC's Dividend Yield is rather good when compared to the industry average which is at 3.20. SGC pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, SGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
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 110.34% 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.
DP110.34%
EPS Next 2Y6.18%
EPS Next 3Y13.28%
10.42
-0.19 (-1.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners43.78%
Inst Owner Change1.08%
Ins Owners17.22%
Ins Owner Change2.88%
Market Cap166.41M
Analysts85
Price Target17.54 (68.33%)
Short Float %2.43%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend0.56
Dividend Growth(5Y)7.14%
DP110.34%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-47.4%
Min EPS beat(2)-140.41%
Max EPS beat(2)45.6%
EPS beat(4)2
Avg EPS beat(4)-15.59%
Min EPS beat(4)-140.41%
Max EPS beat(4)55.59%
EPS beat(8)5
Avg EPS beat(8)30.56%
EPS beat(12)6
Avg EPS beat(12)20.36%
EPS beat(16)6
Avg EPS beat(16)6.61%
Revenue beat(2)1
Avg Revenue beat(2)2.36%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)7.24%
Revenue beat(4)2
Avg Revenue beat(4)1.64%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)7.24%
Revenue beat(8)4
Avg Revenue beat(8)0.56%
Revenue beat(12)6
Avg Revenue beat(12)-0.61%
Revenue beat(16)8
Avg Revenue beat(16)0.27%
PT rev (1m)0%
PT rev (3m)1.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)-4.53%
EPS NY rev (3m)9.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.27%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)1.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.43 | ||
| Fwd PE | 12.49 | ||
| P/S | 0.29 | ||
| P/FCF | 11.17 | ||
| P/OCF | 8.29 | ||
| P/B | 0.87 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)0.51
EY4.89%
EPS(NY)0.83
Fwd EY8.01%
FCF(TTM)0.93
FCFY8.95%
OCF(TTM)1.26
OCFY12.06%
SpS36.08
BVpS12.03
TBVpS8.79
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.96% | ||
| ROE | 4.31% | ||
| ROCE | 4.88% | ||
| ROIC | 4.24% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 5.5% | ||
| OM | 2.69% | ||
| PM (TTM) | 1.44% | ||
| GM | 38.23% | ||
| FCFM | 2.59% |
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-Score4
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 3.32 | ||
| Cap/Depr | 40.61% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.05% | ||
| Profit Quality | 179.81% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 2.8 |
F-Score4
WACC10.75%
ROIC/WACC0.39
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)-26.09%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%150%
EPS Next Y-36.67%
EPS Next 2Y6.18%
EPS Next 3Y13.28%
EPS Next 5Y13%
Revenue 1Y (TTM)4.03%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%9.34%
Revenue Next Year0.63%
Revenue Next 2Y1.99%
Revenue Next 3Y2.89%
Revenue Next 5Y3%
EBIT growth 1Y-24.37%
EBIT growth 3Y-21.13%
EBIT growth 5Y0.95%
EBIT Next Year19.43%
EBIT Next 3Y19.84%
EBIT Next 5Y13.3%
FCF growth 1Y-58.07%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-53.48%
OCF growth 3Y25.09%
OCF growth 5Y10.81%