SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
NYSE:SGI - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
Overall SGI gets a fundamental rating of 5 out of 10. We evaluated SGI against 64 industry peers in the Household Durables industry. While SGI has a great profitability rating, there are quite some concerns on its financial health. SGI is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year SGI was profitable.
SGI had a positive operating cash flow in the past year.
Each year in the past 5 years SGI has been profitable.
In the past 5 years SGI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of SGI (2.43%) is comparable to the rest of the industry.
With a Return On Equity value of 10.03%, SGI perfoms like the industry average, outperforming 51.56% of the companies in the same industry.
SGI has a Return On Invested Capital (4.85%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SGI is above the industry average of 10.43%.
The 3 year average ROIC (12.53%) for SGI is well above the current ROIC(4.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 10.03% | ||
| ROIC | 4.85% |
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
The Profit Margin of SGI (5.14%) 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 better Operating Margin (11.30%) than 71.88% of its industry peers.
SGI's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 44.05%, SGI belongs to the best of the industry, outperforming 82.81% 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 | 11.3% | ||
| PM (TTM) | 5.14% | ||
| GM | 44.05% |
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.
The number of shares outstanding for SGI has been increased compared to 1 year ago.
Compared to 5 years ago, SGI has less shares outstanding
SGI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.00 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 2.00. This is in the lower half of the industry: SGI underperforms 65.63% of its industry peers.
The Debt to FCF ratio of SGI is 9.10, which is on the high side as it means it would take SGI, 9.10 years of fcf income to pay off all of its debts.
SGI's Debt to FCF ratio of 9.10 is in line compared to the rest of the industry. SGI outperforms 51.56% of its industry peers.
SGI has a Debt/Equity ratio of 1.79. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SGI (1.79) is worse than 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.1 | ||
| Altman-Z | 2 |
ROIC/WACC0.57
WACC8.48%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SGI may have some problems paying its short term obligations.
SGI has a worse Current ratio (0.84) than 92.19% of its industry peers.
SGI has a Quick Ratio of 0.84. This is a bad value and indicates that SGI is not financially healthy enough and could expect problems in meeting its short term obligations.
SGI's Quick ratio of 0.44 is on the low side compared to the rest of the industry. SGI is outperformed by 79.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.72% over the past year.
Measured over the past years, SGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
The Revenue has grown by 8.96% in the past year. This is quite good.
SGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.68% yearly.
EPS 1Y (TTM)6.72%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-2%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%34.92%
3.2 Future
The Earnings Per Share is expected to grow by 15.72% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.32% on average over the next years. This is quite good.
EPS Next Y-2.05%
EPS Next 2Y9.71%
EPS Next 3Y12.74%
EPS Next 5Y15.72%
Revenue Next Year50.83%
Revenue Next 2Y26.42%
Revenue Next 3Y18.24%
Revenue Next 5Y13.32%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.61, which means the current valuation is very expensive for SGI.
Based on the Price/Earnings ratio, SGI is valued a bit more expensive than 65.63% of the companies in the same industry.
SGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.25.
Based on the Price/Forward Earnings ratio of 21.20, the valuation of SGI can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGI indicates a slightly more expensive valuation: SGI is more expensive than 70.31% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SGI to the average of the S&P500 Index (22.15), we can say SGI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 21.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGI is valued a bit more expensive than the industry average as 70.31% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as SGI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.54 | ||
| EV/EBITDA | 23.48 |
4.3 Compensation for Growth
SGI has a very decent profitability rating, which may justify a higher PE ratio.
SGI's earnings are expected to grow with 12.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y9.71%
EPS Next 3Y12.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, SGI is not a good candidate for dividend investing.
SGI's Dividend Yield is a higher than the industry average which is at 3.61.
With a Dividend Yield of 0.92, SGI pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
On average, the dividend of SGI grows each year by 55.01%, which is quite nice.
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
36.63% of the earnings are spent on dividend by SGI. This is a low number and sustainable payout ratio.
The dividend of SGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.63%
EPS Next 2Y9.71%
EPS Next 3Y12.74%
65.06
-0.26 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.34%
Inst Owner ChangeN/A
Ins Owners2.78%
Ins Owner Change17.98%
Market Cap13.57B
Analysts81.25
Price Target73.64 (13.19%)
Short Float %13.72%
Short Ratio6.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP36.63%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.59%
Min EPS beat(2)4.03%
Max EPS beat(2)5.14%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.2%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)0.34%
EPS beat(12)8
Avg EPS beat(12)0.69%
EPS beat(16)11
Avg EPS beat(16)3.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)2
Avg Revenue beat(12)-2.04%
Revenue beat(16)5
Avg Revenue beat(16)-1.75%
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)-24.67%
EPS NQ rev (3m)-24.51%
EPS NY rev (1m)-10.77%
EPS NY rev (3m)-13.8%
Revenue NQ rev (1m)-4.84%
Revenue NQ rev (3m)-5.07%
Revenue NY rev (1m)-3.75%
Revenue NY rev (3m)44.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.61 | ||
| Fwd PE | 21.2 | ||
| P/S | 2.54 | ||
| P/FCF | 24.54 | ||
| P/OCF | 21.11 | ||
| P/B | 4.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.48 |
EPS(TTM)2.54
EY3.9%
EPS(NY)3.07
Fwd EY4.72%
FCF(TTM)2.65
FCFY4.07%
OCF(TTM)3.08
OCFY4.74%
SpS25.63
BVpS13.14
TBVpS-20
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 10.03% | ||
| ROCE | 6.27% | ||
| ROIC | 4.85% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 17.88% | ||
| OM | 11.3% | ||
| PM (TTM) | 5.14% | ||
| GM | 44.05% | ||
| FCFM | 10.34% |
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-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.1 | ||
| Debt/EBITDA | 6.25 | ||
| Cap/Depr | 48.91% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 81.61% | ||
| Profit Quality | 201.13% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2 |
F-Score6
WACC8.48%
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)6.72%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-2%
EPS Next Y-2.05%
EPS Next 2Y9.71%
EPS Next 3Y12.74%
EPS Next 5Y15.72%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%34.92%
Revenue Next Year50.83%
Revenue Next 2Y26.42%
Revenue Next 3Y18.24%
Revenue Next 5Y13.32%
EBIT growth 1Y1.96%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year74.86%
EBIT Next 3Y29.53%
EBIT Next 5Y21.58%
FCF growth 1Y485.7%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y63.66%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%