SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
NYSE:SIG - New York Stock Exchange, Inc. - BMG812761002 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to SIG. SIG was compared to 122 industry peers in the Specialty Retail industry. While SIG has a great health rating, its profitability is only average at the moment. SIG is valued quite cheap, but it does not seem to be growing. These ratings could make SIG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year SIG was profitable.
In the past year SIG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SIG reported negative net income in multiple years.
Each year in the past 5 years SIG had a positive operating cash flow.
1.2 Ratios
SIG has a Return On Assets (0.70%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 2.14%, SIG is in line with its industry, outperforming 59.84% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.54%, SIG is doing good in the industry, outperforming 73.77% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SIG is below the industry average of 12.95%.
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
Looking at the Profit Margin, with a value of 0.56%, SIG is in line with its industry, outperforming 54.10% of the companies in the same industry.
SIG has a Operating Margin of 7.54%. This is in the better half of the industry: SIG outperforms 77.87% of its industry peers.
In the last couple of years the Operating Margin of SIG has grown nicely.
The Gross Margin of SIG (39.38%) is better than 60.66% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SIG is creating some value.
Compared to 1 year ago, SIG has less shares outstanding
The number of shares outstanding for SIG has been reduced compared to 5 years ago.
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
SIG has an Altman-Z score of 3.23. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SIG (3.23) is better than 75.41% 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 | 3.23 |
ROIC/WACC1.08
WACC9.77%
2.3 Liquidity
A Current Ratio of 1.50 indicates that SIG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, SIG is in the better half of the industry, outperforming 60.66% 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 75.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
The earnings per share for SIG have decreased by -3.53% in the last year.
The Earnings Per Share has been growing by 21.38% on average over the past years. This is a very strong growth
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -3.98% in the last year.
Measured over the past years, SIG shows a small growth in Revenue. The Revenue has been growing by 1.78% on average per year.
EPS 1Y (TTM)-3.53%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%6.31%
Revenue 1Y (TTM)-3.98%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.04%
3.2 Future
The Earnings Per Share is expected to grow by 4.70% on average over the next years.
The Revenue is expected to grow by 0.65% on average over the next years.
EPS Next Y-3.4%
EPS Next 2Y4.34%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y0.89%
Revenue Next 3Y0.65%
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
With a Price/Earnings ratio of 8.59, the valuation of SIG can be described as very reasonable.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
SIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.65.
A Price/Forward Earnings ratio of 7.95 indicates a rather cheap valuation of SIG.
Based on the Price/Forward Earnings ratio, SIG is valued cheaply inside the industry as 87.70% of the companies are valued more expensively.
SIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
SIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIG is cheaper than 84.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SIG is valued cheaper than 86.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 4.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y4.34%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.57%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.35, SIG pays a bit more dividend than its industry peers.
SIG's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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 2Y4.34%
EPS Next 3Y4.7%
79.76
-1.88 (-2.3%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners116.14%
Inst Owner Change-3.69%
Ins Owners3.54%
Ins Owner Change4.03%
Market Cap3.30B
Analysts75
Price Target88.89 (11.45%)
Short Float %14.18%
Short Ratio4.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)21.88%
PT rev (3m)12.59%
EPS NQ rev (1m)3.18%
EPS NQ rev (3m)-10.3%
EPS NY rev (1m)5.76%
EPS NY rev (3m)-4.94%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0.71%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.59 | ||
| Fwd PE | 7.95 | ||
| P/S | 0.49 | ||
| P/FCF | 8.1 | ||
| P/OCF | 5.75 | ||
| P/B | 1.86 | ||
| P/tB | 3.35 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)9.29
EY11.65%
EPS(NY)10.04
Fwd EY12.58%
FCF(TTM)9.85
FCFY12.35%
OCF(TTM)13.87
OCFY17.39%
SpS162.75
BVpS42.91
TBVpS23.83
PEG (NY)N/A
PEG (5Y)0.4
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 | 3.23 |
F-Score6
WACC9.77%
ROIC/WACC1.08
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)-3.53%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%6.31%
EPS Next Y-3.4%
EPS Next 2Y4.34%
EPS Next 3Y4.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.98%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.04%
Revenue Next Year0.71%
Revenue Next 2Y0.89%
Revenue Next 3Y0.65%
Revenue Next 5YN/A
EBIT growth 1Y-12.98%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year29.87%
EBIT Next 3Y11.43%
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%