SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
NYSE:SGI - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
Taking everything into account, SGI scores 5 out of 10 in our fundamental rating. SGI was compared to 64 industry peers in the Household Durables industry. SGI scores excellent on profitability, but there are concerns on its financial health. SGI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SGI had positive earnings in the past year.
In the past year SGI had a positive cash flow from operations.
SGI had positive earnings in each of the past 5 years.
Each year in the past 5 years SGI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SGI (6.43%) is comparable to the rest of the industry.
SGI has a better Return On Equity (68.75%) than 96.88% of its industry peers.
SGI has a better Return On Invested Capital (9.78%) than 60.94% of its industry peers.
SGI had an Average Return On Invested Capital over the past 3 years of 12.53%. This is in line with the industry average of 12.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 68.75% | ||
| ROIC | 9.78% |
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 of 7.79%. This is in the better half of the industry: SGI outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of SGI has grown nicely.
SGI has a Operating Margin of 12.88%. This is in the better half of the industry: SGI outperforms 75.00% of its industry peers.
SGI's Operating Margin has improved in the last couple of years.
SGI has a better Gross Margin (44.41%) than 84.38% of its industry peers.
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 | 12.88% | ||
| PM (TTM) | 7.79% | ||
| GM | 44.41% |
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
SGI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, SGI has a worse debt to assets ratio.
2.2 Solvency
SGI has an Altman-Z score of 3.43. This indicates that SGI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SGI (3.43) is better than 64.06% of its industry peers.
The Debt to FCF ratio of SGI is 6.69, which is on the high side as it means it would take SGI, 6.69 years of fcf income to pay off all of its debts.
SGI has a Debt to FCF ratio (6.69) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.69 is on the high side and indicates that SGI has dependencies on debt financing.
SGI has a Debt to Equity ratio of 6.69. This is amonst the worse of the industry: SGI underperforms 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.69 | ||
| Debt/FCF | 6.69 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.17
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SGI should not have too much problems paying its short term obligations.
SGI has a worse Current ratio (1.11) than 89.06% of its industry peers.
SGI has a Quick Ratio of 1.11. This is a bad value and indicates that SGI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SGI (0.64) is worse than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.81% over the past year.
SGI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 20.59% yearly.
The Revenue has been growing slightly by 0.11% in the past year.
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)5.81%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%13.21%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%3.2%
3.2 Future
The Earnings Per Share is expected to grow by 15.72% on average over the next years. This is quite good.
SGI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.32% yearly.
EPS Next Y9.78%
EPS Next 2Y15.42%
EPS Next 3Y15.55%
EPS Next 5Y15.72%
Revenue Next Year56.7%
Revenue Next 2Y29.48%
Revenue Next 3Y20.44%
Revenue Next 5Y13.32%
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.
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
SGI is valuated rather expensively with a Price/Earnings ratio of 23.48.
Based on the Price/Earnings ratio, SGI is valued a bit more expensive than 62.50% of the companies in the same industry.
SGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.99.
With a Price/Forward Earnings ratio of 21.39, SGI is valued on the expensive side.
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 67.19% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, SGI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.39 |
4.2 Price Multiples
71.88% of the companies in the same industry are cheaper than SGI, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as SGI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.94 | ||
| EV/EBITDA | 20.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SGI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SGI's earnings are expected to grow with 15.55% in the coming years.
PEG (NY)2.4
PEG (5Y)1.14
EPS Next 2Y15.42%
EPS Next 3Y15.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, SGI is not a good candidate for dividend investing.
SGI's Dividend Yield is a higher than the industry average which is at 3.59.
Compared to an average S&P500 Dividend Yield of 2.44, SGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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.
Dividend Growth(5Y)55.01%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
SGI pays out 24.12% of its income as dividend. This is a sustainable payout ratio.
The dividend of SGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.12%
EPS Next 2Y15.42%
EPS Next 3Y15.55%
NYSE:SGI (5/8/2025, 1:11:10 PM)
59.885
-0.71 (-1.16%)
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 Change-1.69%
Market Cap12.49B
Analysts81.25
Price Target73.64 (22.97%)
Short Float %16.33%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP24.12%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.84%
Min EPS beat(2)0.54%
Max EPS beat(2)5.14%
EPS beat(4)3
Avg EPS beat(4)1.49%
Min EPS beat(4)-2.2%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)0.15%
EPS beat(12)8
Avg EPS beat(12)1.44%
EPS beat(16)11
Avg EPS beat(16)4.46%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.08%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.38%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)6
Avg Revenue beat(16)-1.42%
PT rev (1m)-2.14%
PT rev (3m)N/A
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.66%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 21.39 | ||
| P/S | 2.53 | ||
| P/FCF | 21.94 | ||
| P/OCF | 18.74 | ||
| P/B | 22.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.41 |
EPS(TTM)2.55
EY4.26%
EPS(NY)2.8
Fwd EY4.67%
FCF(TTM)2.73
FCFY4.56%
OCF(TTM)3.2
OCFY5.34%
SpS23.64
BVpS2.68
TBVpS-5.79
PEG (NY)2.4
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.43% | ||
| ROE | 68.75% | ||
| ROCE | 12.65% | ||
| ROIC | 9.78% | ||
| ROICexc | 10.02% | ||
| ROICexgc | 15.66% | ||
| OM | 12.88% | ||
| PM (TTM) | 7.79% | ||
| GM | 44.41% | ||
| FCFM | 11.54% |
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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.69 | ||
| Debt/FCF | 6.69 | ||
| Debt/EBITDA | 4.68 | ||
| Cap/Depr | 58.93% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 4.03 | ||
| Cash Conversion | 83.31% | ||
| Profit Quality | 148.11% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | 3.43 |
F-Score5
WACC8.34%
ROIC/WACC1.17
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)5.81%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%13.21%
EPS Next Y9.78%
EPS Next 2Y15.42%
EPS Next 3Y15.55%
EPS Next 5Y15.72%
Revenue 1Y (TTM)0.11%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%3.2%
Revenue Next Year56.7%
Revenue Next 2Y29.48%
Revenue Next 3Y20.44%
Revenue Next 5Y13.32%
EBIT growth 1Y6.83%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year88.65%
EBIT Next 3Y32.29%
EBIT Next 5Y21.58%
FCF growth 1Y47.88%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y16.87%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%