SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SGI - US88023U1016 - Common Stock
89.28 USD
-1.03 (-1.14%)
89.28 USD
0 (0%)
Overall SGI gets a fundamental rating of 5 out of 10. We evaluated SGI against 60 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year SGI was profitable.
In the past year SGI had a positive cash flow from operations.
Each year in the past 5 years SGI has been profitable.
Each year in the past 5 years SGI had a positive operating cash flow.
1.2 Ratios
SGI has a Return On Assets (2.77%) which is comparable to the rest of the industry.
With a Return On Equity value of 10.56%, SGI perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
SGI has a Return On Invested Capital (7.75%) 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 9.70%.
The 3 year average ROIC (12.53%) for SGI is well above the current ROIC(7.75%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 10.56% | ||
| ROIC | 7.75% |
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.
The Operating Margin of SGI (14.20%) is better than 86.67% of its industry peers.
SGI's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 47.27%, SGI belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
SGI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.2% | ||
| PM (TTM) | 4.62% | ||
| GM | 47.27% |
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.
Compared to 5 years ago, SGI has less shares outstanding
The debt/assets ratio for SGI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.64 indicates that SGI is not a great score, but indicates only limited risk for bankruptcy at the moment.
SGI has a Altman-Z score (2.64) which is in line with its industry peers.
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 (6.60) which is comparable to the rest of the industry.
SGI has a Debt/Equity ratio of 1.51. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.51, SGI is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.87
WACC8.9%
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: 95.00% 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.
Looking at the Quick ratio, with a value of 0.38, SGI is doing worse than 88.33% of the companies in the same industry.
| 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.
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 grown by 39.29% in the past year. This is a very strong growth!
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
Based on estimates for the next years, SGI will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.12% on average per year.
The Revenue is expected to grow by 12.46% on average over the next years. This is quite good.
EPS Next Y6.72%
EPS Next 2Y14.9%
EPS Next 3Y16.91%
EPS Next 5Y16.12%
Revenue Next Year53.59%
Revenue Next 2Y27.85%
Revenue Next 3Y19.5%
Revenue Next 5Y12.46%
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
A Price/Earnings ratio of 34.74 indicates a quite expensive valuation of SGI.
Based on the Price/Earnings ratio, SGI is valued a bit more expensive than the industry average as 70.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of SGI to the average of the S&P500 Index (26.51), we can say SGI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 26.52, the valuation of SGI can be described as expensive.
Based on the Price/Forward Earnings ratio, SGI is valued a bit more expensive than 66.67% of the companies in the same industry.
SGI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 26.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGI is valued a bit more expensive than the industry average as 73.33% 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 | 26.76 | ||
| EV/EBITDA | 19.72 |
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.
SGI's earnings are expected to grow with 16.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.17
PEG (5Y)1.69
EPS Next 2Y14.9%
EPS Next 3Y16.91%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, SGI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.23, SGI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.67, SGI pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
SGI pays out 37.60% of its income as dividend. This is a sustainable payout ratio.
SGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.6%
EPS Next 2Y14.9%
EPS Next 3Y16.91%
89.28
-1.03 (-1.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.18%
Inst Owner ChangeN/A
Ins Owners2.82%
Ins Owner Change-8.42%
Market Cap18.74B
Revenue(TTM)6.82B
Net Income(TTM)315.20M
Analysts80
Price Target104.33 (16.86%)
Short Float %2.55%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP37.6%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)1.27%
PT rev (3m)21.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.79%
EPS NY rev (1m)5.02%
EPS NY rev (3m)5.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)1%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 26.52 | ||
| P/S | 2.75 | ||
| P/FCF | 26.76 | ||
| P/OCF | 22.58 | ||
| P/B | 6.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.72 |
EPS(TTM)2.57
EY2.88%
EPS(NY)3.37
Fwd EY3.77%
FCF(TTM)3.34
FCFY3.74%
OCF(TTM)3.95
OCFY4.43%
SpS32.47
BVpS14.22
TBVpS-19.19
PEG (NY)5.17
PEG (5Y)1.69
Graham Number28.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.77% | ||
| ROE | 10.56% | ||
| ROCE | 10.02% | ||
| ROIC | 7.75% | ||
| ROICexc | 7.83% | ||
| ROICexgc | 29.41% | ||
| OM | 14.2% | ||
| PM (TTM) | 4.62% | ||
| GM | 47.27% | ||
| 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-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.51 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 3.79 | ||
| Cap/Depr | 58.02% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 69.68% | ||
| Profit Quality | 222.18% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 2.64 |
F-Score6
WACC8.9%
ROIC/WACC0.87
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 Y6.72%
EPS Next 2Y14.9%
EPS Next 3Y16.91%
EPS Next 5Y16.12%
Revenue 1Y (TTM)39.29%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%63.28%
Revenue Next Year53.59%
Revenue Next 2Y27.85%
Revenue Next 3Y19.5%
Revenue Next 5Y12.46%
EBIT growth 1Y54.34%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year82.31%
EBIT Next 3Y32.92%
EBIT Next 5Y22.15%
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 5 / 10 to SGI.
Can you provide the valuation status for SOMNIGROUP INTERNATIONAL INC?
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.
How financially healthy is SOMNIGROUP INTERNATIONAL INC?
The financial health rating of SOMNIGROUP INTERNATIONAL INC (SGI) is 2 / 10.
Can you provide the expected EPS growth for SGI stock?
The Earnings per Share (EPS) of SOMNIGROUP INTERNATIONAL INC (SGI) is expected to grow by 6.72% in the next year.