SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
NYSE:SIG - BMG812761002 - Common Stock
88.68 USD
-1.78 (-1.97%)
88.55 USD
-0.13 (-0.15%)
Taking everything into account, SIG scores 5 out of 10 in our fundamental rating. SIG was compared to 123 industry peers in the Specialty Retail industry. SIG has an excellent financial health rating, but there are some minor concerns on its profitability. SIG has a bad growth rate and is valued cheaply. With these ratings, SIG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SIG had positive earnings in the past year.
SIG had a positive operating cash flow in the past year.
In multiple years SIG reported negative net income over the last 5 years.
Each year in the past 5 years SIG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.70%, SIG is in line with its industry, outperforming 53.66% of the companies in the same industry.
With a Return On Equity value of 2.14%, SIG perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
The Return On Invested Capital of SIG (10.54%) is better than 73.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIG is below the industry average of 12.10%.
The last Return On Invested Capital (10.54%) for SIG is above the 3 year average (9.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.14% | ||
| ROIC | 10.54% |
ROA(3y)5.31%
ROA(5y)5.27%
ROE(3y)13.63%
ROE(5y)14.29%
ROIC(3y)9.28%
ROIC(5y)9.31%
1.3 Margins
SIG has a Profit Margin of 0.56%. This is comparable to the rest of the industry: SIG outperforms 55.28% of its industry peers.
The Operating Margin of SIG (7.54%) is better than 78.05% of its industry peers.
In the last couple of years the Operating Margin of SIG has grown nicely.
SIG's Gross Margin of 39.38% is fine compared to the rest of the industry. SIG outperforms 62.60% of its industry peers.
SIG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.54% | ||
| PM (TTM) | 0.56% | ||
| GM | 39.38% |
OM growth 3Y-13.67%
OM growth 5Y7.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SIG is still creating some value.
Compared to 1 year ago, SIG has less shares outstanding
Compared to 5 years ago, SIG has less shares outstanding
SIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.30 indicates that SIG is not in any danger for bankruptcy at the moment.
SIG has a Altman-Z score of 3.30. This is in the better half of the industry: SIG outperforms 73.98% of its industry peers.
There is no outstanding debt for SIG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.1
WACC9.61%
2.3 Liquidity
SIG has a Current Ratio of 1.50. This is a normal value and indicates that SIG is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.50, SIG is doing good in the industry, outperforming 61.79% of the companies in the same industry.
A Quick Ratio of 0.28 indicates that SIG may have some problems paying its short term obligations.
The Quick ratio of SIG (0.28) is worse than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
SIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.43%.
SIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.38% yearly.
SIG shows a decrease in Revenue. In the last year, the revenue decreased by -6.52%.
The Revenue has been growing slightly by 1.78% on average over the past years.
EPS 1Y (TTM)3.43%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%28.8%
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.96%
3.2 Future
SIG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.52% yearly.
SIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
EPS Next Y-1.96%
EPS Next 2Y4.38%
EPS Next 3Y4.52%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y0.89%
Revenue Next 3Y0.71%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.19 indicates a reasonable valuation of SIG.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.90, SIG is valued rather cheaply.
SIG is valuated reasonably with a Price/Forward Earnings ratio of 8.83.
Based on the Price/Forward Earnings ratio, SIG is valued cheaper than 88.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.52, SIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.83 |
4.2 Price Multiples
SIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIG is cheaper than 86.99% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIG is valued cheaper than 88.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 5.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y4.38%
EPS Next 3Y4.52%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.41, SIG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, SIG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
5.2 History
The dividend of SIG decreases each year by -5.93%.
SIG has paid a dividend for at least 10 years, which is a reliable track record.
SIG has decreased its dividend recently.
Dividend Growth(5Y)-5.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SIG pays out 155.79% of its income as dividend. This is not a sustainable payout ratio.
DP155.79%
EPS Next 2Y4.38%
EPS Next 3Y4.52%
88.68
-1.78 (-1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners116.2%
Inst Owner Change0.08%
Ins Owners3.58%
Ins Owner Change5%
Market Cap3.65B
Analysts76.92
Price Target95.73 (7.95%)
Short Float %15.83%
Short Ratio6.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend1.54
Dividend Growth(5Y)-5.93%
DP155.79%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.07%
Min EPS beat(2)4.81%
Max EPS beat(2)13.33%
EPS beat(4)3
Avg EPS beat(4)0.49%
Min EPS beat(4)-24.84%
Max EPS beat(4)13.33%
EPS beat(8)7
Avg EPS beat(8)9.09%
EPS beat(12)11
Avg EPS beat(12)19.14%
EPS beat(16)14
Avg EPS beat(16)25.39%
Revenue beat(2)1
Avg Revenue beat(2)0.16%
Min Revenue beat(2)-0.1%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.92%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)0.43%
Revenue beat(8)2
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.74%
PT rev (1m)3.93%
PT rev (3m)26.67%
EPS NQ rev (1m)2.14%
EPS NQ rev (3m)11.08%
EPS NY rev (1m)0%
EPS NY rev (3m)7.34%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.19 | ||
| Fwd PE | 8.83 | ||
| P/S | 0.54 | ||
| P/FCF | 8.96 | ||
| P/OCF | 6.36 | ||
| P/B | 2.06 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)9.65
EY10.88%
EPS(NY)10.05
Fwd EY11.33%
FCF(TTM)9.9
FCFY11.17%
OCF(TTM)13.94
OCFY15.72%
SpS163.66
BVpS43.15
TBVpS23.96
PEG (NY)N/A
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.7% | ||
| ROE | 2.14% | ||
| ROCE | 13.34% | ||
| ROIC | 10.54% | ||
| ROICexc | 11.33% | ||
| ROICexgc | 14.58% | ||
| OM | 7.54% | ||
| PM (TTM) | 0.56% | ||
| GM | 39.38% | ||
| FCFM | 6.05% |
ROA(3y)5.31%
ROA(5y)5.27%
ROE(3y)13.63%
ROE(5y)14.29%
ROIC(3y)9.28%
ROIC(5y)9.31%
ROICexc(3y)11.56%
ROICexc(5y)12.35%
ROICexgc(3y)16.77%
ROICexgc(5y)17.21%
ROCE(3y)11.75%
ROCE(5y)11.78%
ROICexcg growth 3Y-25.96%
ROICexcg growth 5Y13.3%
ROICexc growth 3Y-24.14%
ROICexc growth 5Y11.09%
OM growth 3Y-13.67%
OM growth 5Y7.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y1.48%
F-Score6
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 111.91% | ||
| Cap/Sales | 2.47% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.43% | ||
| Profit Quality | 1072.37% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.28 | ||
| Altman-Z | 3.3 |
F-Score6
WACC9.61%
ROIC/WACC1.1
Cap/Depr(3y)88.4%
Cap/Depr(5y)78.32%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.43%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%28.8%
EPS Next Y-1.96%
EPS Next 2Y4.38%
EPS Next 3Y4.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.96%
Revenue Next Year0.71%
Revenue Next 2Y0.89%
Revenue Next 3Y0.71%
Revenue Next 5YN/A
EBIT growth 1Y-12.98%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year35.99%
EBIT Next 3Y10.79%
EBIT Next 5YN/A
FCF growth 1Y0.27%
FCF growth 3Y-27.04%
FCF growth 5Y0.87%
OCF growth 1Y4.02%
OCF growth 3Y-22.25%
OCF growth 5Y1.24%