SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
USA - NYSE:SGI - US88023U1016 - Common Stock
93.5 USD
+2.25 (+2.47%)
93.22 USD
-0.28 (-0.3%)
SGI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Household Durables industry. While SGI belongs to the best of the industry regarding profitability, there are 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.
In the past 5 years SGI has always been profitable.
SGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.77%, SGI perfoms like the industry average, outperforming 47.54% of the companies in the same industry.
SGI has a Return On Equity (10.56%) which is comparable to the rest of the industry.
SGI has a Return On Invested Capital (5.84%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SGI is above the industry average of 9.90%.
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
The Profit Margin of SGI (4.62%) is comparable to the rest of the industry.
SGI's Profit Margin has improved in the last couple of years.
SGI has a better Operating Margin (10.70%) than 73.77% of its industry peers.
In the last couple of years the Operating Margin of SGI has grown nicely.
SGI has a Gross Margin of 43.77%. This is amongst the best in the industry. SGI outperforms 80.33% of its industry peers.
SGI's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SGI is creating some value.
SGI has more shares outstanding than it did 1 year ago.
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
The Debt to FCF ratio of SGI is 6.60, which is on the high side as it means it would take SGI, 6.60 years of fcf income to pay off all of its debts.
SGI has a Debt to FCF ratio (6.60) which is in line with its industry peers.
SGI has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
SGI has a worse Debt to Equity ratio (1.51) 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
A Current Ratio of 0.75 indicates that SGI may have some problems paying 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.
A Quick Ratio of 0.38 indicates that SGI may have some problems paying its short term obligations.
SGI has a Quick ratio of 0.38. This is amonst the worse of the industry: SGI underperforms 88.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
SGI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.63%.
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.
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.
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 Y1.62%
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
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
Based on the Price/Earnings ratio of 36.38, the valuation of SGI can be described as expensive.
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 26.28.
The Price/Forward Earnings ratio is 29.26, which means the current valuation is very expensive for SGI.
Based on the Price/Forward Earnings ratio, SGI is valued a bit more expensive than 67.21% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SGI to the average of the S&P500 Index (33.61), we can say SGI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.38 | ||
| Fwd PE | 29.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGI is valued a bit more expensive than the industry average as 73.77% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.02 | ||
| EV/EBITDA | 24.85 |
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 14.66% in the coming years.
PEG (NY)22.51
PEG (5Y)1.77
EPS Next 2Y11.93%
EPS Next 3Y14.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 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.
Compared to an average S&P500 Dividend Yield of 2.36, SGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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%
93.5
+2.25 (+2.47%)
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 Cap19.62B
Revenue(TTM)6.82B
Net Income(TTM)315.20M
Analysts80
Price Target90.14 (-3.59%)
Short Float %4.41%
Short Ratio4.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 | 36.38 | ||
| Fwd PE | 29.26 | ||
| P/S | 2.88 | ||
| P/FCF | 28.02 | ||
| P/OCF | 23.65 | ||
| P/B | 6.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.85 |
EPS(TTM)2.57
EY2.75%
EPS(NY)3.19
Fwd EY3.42%
FCF(TTM)3.34
FCFY3.57%
OCF(TTM)3.95
OCFY4.23%
SpS32.47
BVpS14.22
TBVpS-19.19
PEG (NY)22.51
PEG (5Y)1.77
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%.