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 6 out of 10 to SIG. 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 is cheap, but on the other hand it scores bad on growth. These ratings could make SIG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
SIG had positive earnings in the past year.
In the past year SIG had a positive cash flow from operations.
In multiple years SIG reported negative net income over the last 5 years.
In the past 5 years SIG always reported a positive cash flow from operatings.
1.2 Ratios
SIG's Return On Assets of 0.70% is in line compared to the rest of the industry. SIG outperforms 55.28% of its industry peers.
SIG has a better Return On Equity (2.14%) than 60.98% of its industry peers.
SIG's Return On Invested Capital of 10.54% is fine compared to the rest of the industry. SIG outperforms 74.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SIG is below the industry average of 11.91%.
The 3 year average ROIC (9.28%) for SIG is below the current ROIC(10.54%), indicating increased profibility in the last year.
| 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 55.28% of the companies in the same industry.
The Operating Margin of SIG (7.54%) is better than 78.05% of its industry peers.
SIG's Operating Margin has improved in the last couple of years.
The Gross Margin of SIG (39.38%) is better than 61.79% of its industry peers.
In the last couple of years the Gross Margin of SIG has remained more or less at the same level.
| 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.
The number of shares outstanding for SIG has been reduced compared to 1 year ago.
The number of shares outstanding for SIG has been reduced compared to 5 years ago.
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.
2.2 Solvency
SIG has an Altman-Z score of 3.20. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG has a Altman-Z score of 3.20. This is in the better half of the industry: SIG outperforms 71.54% 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 | 3.2 |
ROIC/WACC1.11
WACC9.5%
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.
SIG has a Current ratio of 1.50. This is in the better half of the industry: SIG outperforms 60.16% of its industry peers.
SIG has a Quick Ratio of 1.50. This is a bad value and indicates that SIG is not financially healthy enough and could expect problems in meeting its short term obligations.
SIG's Quick ratio of 0.28 is on the low side compared to the rest of the industry. SIG is outperformed by 73.98% 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.
Measured over the past years, SIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.38% on average per year.
SIG shows a decrease in Revenue. In the last year, the revenue decreased by -3.98%.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
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.
Based on estimates for the next years, SIG will show a small growth in Revenue. The Revenue will grow by 0.65% on average per year.
EPS Next Y-1.96%
EPS Next 2Y4.38%
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SIG is valuated reasonably with a Price/Earnings ratio of 8.58.
90.24% of the companies in the same industry are more expensive than SIG, based on the Price/Earnings ratio.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
SIG is valuated cheaply with a Price/Forward Earnings ratio of 7.93.
Based on the Price/Forward Earnings ratio, SIG is valued cheaply inside the industry as 91.87% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 33.87. SIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 89.43% of the companies are valued more expensively.
SIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SIG is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 4.38 |
4.3 Compensation for Growth
The decent profitability rating of SIG may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.4
EPS Next 2Y4.38%
EPS Next 3Y4.7%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.70%.
Compared to an average industry Dividend Yield of 6.24, SIG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, SIG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
5.2 History
The dividend of SIG decreases each year by -5.93%.
SIG has been paying a dividend for at least 10 years, so it has 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 3Y4.7%
79.68
+3.35 (+4.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners116.2%
Inst Owner Change0.18%
Ins Owners3.58%
Ins Owner Change4.87%
Market Cap3.28B
Analysts76.92
Price Target92.38 (15.94%)
Short Float %14.53%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.7% |
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)0%
EPS NQ rev (3m)8.75%
EPS NY rev (1m)0%
EPS NY rev (3m)7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.58 | ||
| Fwd PE | 7.93 | ||
| P/S | 0.49 | ||
| P/FCF | 8.05 | ||
| P/OCF | 5.71 | ||
| P/B | 1.85 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | 4.38 |
EPS(TTM)9.29
EY11.66%
EPS(NY)10.05
Fwd EY12.61%
FCF(TTM)9.9
FCFY12.43%
OCF(TTM)13.94
OCFY17.5%
SpS163.66
BVpS43.15
TBVpS23.96
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 | 3.2 |
F-Score6
WACC9.5%
ROIC/WACC1.11
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-1.96%
EPS Next 2Y4.38%
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 Year35.99%
EBIT Next 3Y10.7%
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%