SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
USA - NYSE:SGI - US88023U1016 - Common Stock
92.06 USD
-1.44 (-1.54%)
92.06 USD
0 (0%)
Overall SGI gets a fundamental rating of 4 out of 10. We evaluated SGI against 61 industry peers in the Household Durables industry. SGI scores excellent on profitability, but there are concerns on its financial health. SGI is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years SGI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.77%, SGI is in line with its industry, outperforming 47.54% of the companies in the same industry.
The Return On Equity of SGI (10.56%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.84%, SGI is in line with its industry, outperforming 42.62% of the companies in the same industry.
SGI had an Average Return On Invested Capital over the past 3 years of 12.53%. This is above the industry average of 9.86%.
The 3 year average ROIC (12.53%) for SGI is well above the current ROIC(5.84%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 10.56% | ||
| ROIC | 5.84% |
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 (4.62%) which is in line with its industry peers.
In the last couple of years the Profit Margin of SGI has grown nicely.
SGI's Operating Margin of 10.70% is fine compared to the rest of the industry. SGI outperforms 73.77% of its industry peers.
In the last couple of years the Operating Margin of SGI has grown nicely.
With an excellent Gross Margin value of 43.77%, SGI belongs to the best of the industry, outperforming 80.33% 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 | 10.7% | ||
| PM (TTM) | 4.62% | ||
| GM | 43.77% |
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.
Compared to 1 year ago, SGI has more shares outstanding
The number of shares outstanding for SGI has been reduced compared to 5 years ago.
SGI has a worse debt/assets ratio than last year.
2.2 Solvency
SGI has a debt to FCF ratio of 6.60. This is a slightly negative value and a sign of low solvency as SGI would need 6.60 years to pay back of all of its debts.
SGI has a Debt to FCF ratio of 6.60. This is comparable to the rest of the industry: SGI outperforms 52.46% of its industry peers.
SGI has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SGI (1.51) is worse than 83.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC8.5%
2.3 Liquidity
SGI has a Current Ratio of 0.75. 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 Current ratio value of 0.75, SGI is not doing good in the industry: 95.08% of the companies in the same industry are doing better.
SGI has a Quick Ratio of 0.75. 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 has a Quick ratio of 0.38. This is amonst the worse of the industry: SGI underperforms 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.63% 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
Looking at the last year, SGI shows a very strong growth in Revenue. The Revenue has grown by 39.29%.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)3.63%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%15.85%
Revenue 1Y (TTM)39.29%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%63.28%
3.2 Future
The Earnings Per Share is expected to grow by 15.23% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.14% on average over the next years. This is quite good.
EPS Next Y1.62%
EPS Next 2Y11.93%
EPS Next 3Y14.66%
EPS Next 5Y15.23%
Revenue Next Year52.08%
Revenue Next 2Y26.81%
Revenue Next 3Y18.82%
Revenue Next 5Y12.14%
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 35.82, which means the current valuation is very expensive for SGI.
SGI's Price/Earnings ratio is a bit more expensive when compared to the industry. SGI is more expensive than 70.49% of the companies in the same industry.
SGI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.35.
SGI is valuated quite expensively with a Price/Forward Earnings ratio of 28.81.
67.21% 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 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 28.81 |
4.2 Price Multiples
75.41% 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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.59 | ||
| EV/EBITDA | 25.35 |
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.
SGI's earnings are expected to grow with 14.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)22.16
PEG (5Y)1.74
EPS Next 2Y11.93%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, SGI is not a good candidate for dividend investing.
SGI's Dividend Yield is a higher than the industry average which is at 3.32.
With a Dividend Yield of 0.64, SGI pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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
37.60% of the earnings are spent on dividend by SGI. This is a low number and sustainable payout ratio.
SGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.6%
EPS Next 2Y11.93%
EPS Next 3Y14.66%
92.06
-1.44 (-1.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners110.33%
Inst Owner ChangeN/A
Ins Owners2.92%
Ins Owner Change14.83%
Market Cap19.32B
Revenue(TTM)6.82B
Net Income(TTM)315.20M
Analysts80
Price Target90.14 (-2.09%)
Short Float %4.41%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP37.6%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.38%
Min EPS beat(2)3.12%
Max EPS beat(2)9.64%
EPS beat(4)4
Avg EPS beat(4)5.48%
Min EPS beat(4)3.12%
Max EPS beat(4)9.64%
EPS beat(8)6
Avg EPS beat(8)2.4%
EPS beat(12)9
Avg EPS beat(12)1.75%
EPS beat(16)11
Avg EPS beat(16)1.58%
Revenue beat(2)1
Avg Revenue beat(2)0.18%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)1.95%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)1.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)3
Avg Revenue beat(12)-1.42%
Revenue beat(16)4
Avg Revenue beat(16)-1.84%
PT rev (1m)1.14%
PT rev (3m)16.86%
EPS NQ rev (1m)6.13%
EPS NQ rev (3m)22.56%
EPS NY rev (1m)0.57%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)1.09%
Revenue NQ rev (3m)2.37%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.82 | ||
| Fwd PE | 28.81 | ||
| P/S | 2.83 | ||
| P/FCF | 27.59 | ||
| P/OCF | 23.29 | ||
| P/B | 6.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.35 |
EPS(TTM)2.57
EY2.79%
EPS(NY)3.19
Fwd EY3.47%
FCF(TTM)3.34
FCFY3.62%
OCF(TTM)3.95
OCFY4.29%
SpS32.47
BVpS14.22
TBVpS-19.19
PEG (NY)22.16
PEG (5Y)1.74
Graham Number28.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 10.56% | ||
| ROCE | 7.55% | ||
| ROIC | 5.84% | ||
| ROICexc | 5.9% | ||
| ROICexgc | 22.17% | ||
| OM | 10.7% | ||
| PM (TTM) | 4.62% | ||
| GM | 43.77% | ||
| FCFM | 10.27% |
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%
ROICexgc growth 3Y-36.91%
ROICexgc 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 4.74 | ||
| Cap/Depr | 58.02% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.1% | ||
| Profit Quality | 222.18% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | N/A |
F-Score5
WACC8.5%
ROIC/WACC0.69
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)3.63%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%15.85%
EPS Next Y1.62%
EPS Next 2Y11.93%
EPS Next 3Y14.66%
EPS Next 5Y15.23%
Revenue 1Y (TTM)39.29%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%63.28%
Revenue Next Year52.08%
Revenue Next 2Y26.81%
Revenue Next 3Y18.82%
Revenue Next 5Y12.14%
EBIT growth 1Y16.35%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year77.34%
EBIT Next 3Y31.02%
EBIT Next 5Y21.05%
FCF growth 1Y111.44%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y44.31%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%
SOMNIGROUP INTERNATIONAL INC / SGI FAQ
Can you provide the ChartMill fundamental rating for SOMNIGROUP INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to SGI.
What is the valuation status of SOMNIGROUP INTERNATIONAL INC (SGI) stock?
ChartMill assigns a valuation rating of 2 / 10 to SOMNIGROUP INTERNATIONAL INC (SGI). This can be considered as Overvalued.
Can you provide the profitability details for SOMNIGROUP INTERNATIONAL INC?
SOMNIGROUP INTERNATIONAL INC (SGI) has a profitability rating of 7 / 10.
Can you provide the financial health for SGI stock?
The financial health rating of SOMNIGROUP INTERNATIONAL INC (SGI) is 1 / 10.
Is the dividend of SOMNIGROUP INTERNATIONAL INC sustainable?
The dividend rating of SOMNIGROUP INTERNATIONAL INC (SGI) is 4 / 10 and the dividend payout ratio is 37.6%.