SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
NYSE:SGI - US88023U1016 - Common Stock
84.18 USD
+0.23 (+0.27%)
84.18 USD
0 (0%)
Taking everything into account, SGI scores 5 out of 10 in our fundamental rating. SGI was compared to 61 industry peers in the Household Durables industry. SGI scores excellent on profitability, but there are concerns on its financial health. SGI shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year SGI was profitable.
SGI had a positive operating cash flow in the past year.
SGI had positive earnings in each of the past 5 years.
SGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SGI has a worse Return On Assets (2.35%) than 60.66% of its industry peers.
SGI has a Return On Equity of 9.43%. This is comparable to the rest of the industry: SGI outperforms 49.18% of its industry peers.
SGI's Return On Invested Capital of 4.99% is in line compared to the rest of the industry. SGI outperforms 40.98% of its industry peers.
SGI had an Average Return On Invested Capital over the past 3 years of 12.53%. This is above the industry average of 10.51%.
The last Return On Invested Capital (4.99%) for SGI is well below the 3 year average (12.53%), which needs to be investigated, but indicates that SGI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 9.43% | ||
| ROIC | 4.99% |
ROA(3y)8.32%
ROA(5y)9.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.53%
ROIC(5y)15.1%
1.3 Margins
SGI has a Profit Margin (4.47%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SGI has grown nicely.
SGI has a Operating Margin of 10.43%. This is in the better half of the industry: SGI outperforms 60.66% of its industry peers.
SGI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 43.86%, SGI belongs to the top of the industry, outperforming 83.61% of the companies in the same industry.
In the last couple of years the Gross Margin of SGI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 4.47% | ||
| GM | 43.86% |
OM growth 3Y-10.85%
OM growth 5Y1.76%
PM growth 3Y-14.94%
PM growth 5Y5.02%
GM growth 3Y0.47%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SGI is creating some value.
Compared to 1 year ago, SGI has more shares outstanding
SGI has less shares outstanding than it did 5 years ago.
SGI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that SGI is not a great score, but indicates only limited risk for bankruptcy at the moment.
SGI has a Altman-Z score of 2.36. This is in the lower half of the industry: SGI underperforms 60.66% of its industry peers.
The Debt to FCF ratio of SGI is 8.47, which is on the high side as it means it would take SGI, 8.47 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 8.47, SGI perfoms like the industry average, outperforming 54.10% of the companies in the same industry.
SGI has a Debt/Equity ratio of 1.69. This is a high value indicating a heavy dependency on external financing.
SGI has a Debt to Equity ratio of 1.69. This is amonst the worse of the industry: SGI underperforms 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 8.47 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.57
WACC8.78%
2.3 Liquidity
A Current Ratio of 0.82 indicates that SGI may have some problems paying its short term obligations.
SGI's Current ratio of 0.82 is on the low side compared to the rest of the industry. SGI is outperformed by 93.44% of its industry peers.
SGI has a Quick Ratio of 0.82. This is a bad value and indicates that SGI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.40, SGI is not doing good in the industry: 85.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.41% over the past year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
The Revenue has grown by 23.05% in the past year. This is a very strong growth!
Measured over the past years, SGI shows a quite strong growth in Revenue. The Revenue has been growing by 9.68% on average per year.
EPS 1Y (TTM)0.41%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-15.87%
Revenue 1Y (TTM)23.05%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%52.46%
3.2 Future
Based on estimates for the next years, SGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.23% on average per year.
SGI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.14% yearly.
EPS Next Y1.04%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
EPS Next 5Y15.23%
Revenue Next Year51.66%
Revenue Next 2Y26.63%
Revenue Next 3Y18.99%
Revenue Next 5Y12.14%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.50, the valuation of SGI can be described as expensive.
Based on the Price/Earnings ratio, SGI is valued a bit more expensive than 68.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.90. SGI is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 26.46, SGI can be considered very expensive at the moment.
70.49% of the companies in the same industry are cheaper than SGI, based on the Price/Forward Earnings ratio.
SGI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 26.46 |
4.2 Price Multiples
73.77% of the companies in the same industry are cheaper than SGI, based on the Enterprise Value to EBITDA ratio.
SGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.45 | ||
| EV/EBITDA | 27.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SGI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SGI may justify a higher PE ratio.
A more expensive valuation may be justified as SGI's earnings are expected to grow with 14.04% in the coming years.
PEG (NY)33.05
PEG (5Y)1.68
EPS Next 2Y11.7%
EPS Next 3Y14.04%
5. Dividend
5.1 Amount
SGI has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 2.97, SGI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of SGI is nicely growing with an annual growth rate of 55.01%!
SGI has been paying a dividend for over 5 years, so it has already some track record.
SGI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)55.01%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
SGI pays out 40.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
SGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.93%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
84.18
+0.23 (+0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.56%
Inst Owner ChangeN/A
Ins Owners3.01%
Ins Owner Change14.74%
Market Cap17.67B
Analysts80
Price Target84.66 (0.57%)
Short Float %5.34%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP40.93%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.12%
Max EPS beat(2)4.03%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.54%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)0.45%
EPS beat(12)9
Avg EPS beat(12)1.2%
EPS beat(16)11
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.7%
Revenue beat(16)4
Avg Revenue beat(16)-1.92%
PT rev (1m)15.08%
PT rev (3m)14.96%
EPS NQ rev (1m)-5.07%
EPS NQ rev (3m)-9.66%
EPS NY rev (1m)2.64%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.5 | ||
| Fwd PE | 26.46 | ||
| P/S | 2.95 | ||
| P/FCF | 30.45 | ||
| P/OCF | 26.05 | ||
| P/B | 6.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.14 |
EPS(TTM)2.44
EY2.9%
EPS(NY)3.18
Fwd EY3.78%
FCF(TTM)2.76
FCFY3.28%
OCF(TTM)3.23
OCFY3.84%
SpS28.55
BVpS13.54
TBVpS-19.62
PEG (NY)33.05
PEG (5Y)1.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 9.43% | ||
| ROCE | 6.45% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.04% | ||
| ROICexgc | 18.33% | ||
| OM | 10.43% | ||
| PM (TTM) | 4.47% | ||
| GM | 43.86% | ||
| FCFM | 9.68% |
ROA(3y)8.32%
ROA(5y)9.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.53%
ROIC(5y)15.1%
ROICexc(3y)12.8%
ROICexc(5y)15.79%
ROICexgc(3y)25.07%
ROICexgc(5y)36.46%
ROCE(3y)16.2%
ROCE(5y)19.53%
ROICexcg growth 3Y-36.91%
ROICexcg growth 5Y-14.03%
ROICexc growth 3Y-24.57%
ROICexc growth 5Y-4.71%
OM growth 3Y-10.85%
OM growth 5Y1.76%
PM growth 3Y-14.94%
PM growth 5Y5.02%
GM growth 3Y0.47%
GM growth 5Y0.55%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 8.47 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 48.61% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 82.03% | ||
| Profit Quality | 216.65% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.36 |
F-Score5
WACC8.78%
ROIC/WACC0.57
Cap/Depr(3y)145.7%
Cap/Depr(5y)131.92%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.5%
Profit Quality(3y)89.49%
Profit Quality(5y)104.05%
High Growth Momentum
Growth
EPS 1Y (TTM)0.41%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-15.87%
EPS Next Y1.04%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
EPS Next 5Y15.23%
Revenue 1Y (TTM)23.05%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%52.46%
Revenue Next Year51.66%
Revenue Next 2Y26.63%
Revenue Next 3Y18.99%
Revenue Next 5Y12.14%
EBIT growth 1Y2.85%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year75.41%
EBIT Next 3Y30.02%
EBIT Next 5Y21.05%
FCF growth 1Y112.14%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y20.57%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%