SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SIG - BMG812761002 - Common Stock
92.63 USD
+5.38 (+6.17%)
92.63 USD
0 (0%)
Taking everything into account, SIG scores 6 out of 10 in our fundamental rating. SIG was compared to 121 industry peers in the Specialty Retail industry. SIG has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on SIG. This makes SIG very considerable 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.
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
The Return On Assets of SIG (2.68%) is comparable to the rest of the industry.
SIG has a Return On Equity of 8.43%. This is in the better half of the industry: SIG outperforms 64.46% of its industry peers.
With an excellent Return On Invested Capital value of 11.48%, SIG belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
SIG had an Average Return On Invested Capital over the past 3 years of 9.28%. This is below the industry average of 12.23%.
The 3 year average ROIC (9.28%) for SIG is below the current ROIC(11.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.43% | ||
| ROIC | 11.48% |
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 2.13%, SIG is in the better half of the industry, outperforming 61.98% of the companies in the same industry.
SIG's Operating Margin of 7.88% is fine compared to the rest of the industry. SIG outperforms 76.86% of its industry peers.
SIG's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 39.75%, SIG is doing good in the industry, outperforming 61.16% of the companies in the same industry.
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 | 7.88% | ||
| PM (TTM) | 2.13% | ||
| GM | 39.75% |
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.
SIG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SIG has less shares outstanding
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
An Altman-Z score of 3.33 indicates that SIG is not in any danger for bankruptcy at the moment.
The Altman-Z score of SIG (3.33) is better than 79.34% of its industry peers.
SIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.17
WACC9.82%
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 61.16% of the companies in the same industry.
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.
The Quick ratio of SIG (0.27) is worse than 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
SIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.61%.
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 -0.40%.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)7.61%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%162.5%
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%3.14%
3.2 Future
The Earnings Per Share is expected to grow by 6.79% 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 1.47% on average per year.
EPS Next Y0.01%
EPS Next 2Y5.98%
EPS Next 3Y6.79%
EPS Next 5YN/A
Revenue Next Year2.1%
Revenue Next 2Y1.76%
Revenue Next 3Y1.47%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.23, the valuation of SIG can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 89.26% of the companies listed in the same industry.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
SIG is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 92.56% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of SIG to the average of the S&P500 Index (23.80), we can say SIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaper than 88.43% of the companies in the same industry.
95.87% of the companies in the same industry are more expensive than SIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of SIG may justify a higher PE ratio.
PEG (NY)654.34
PEG (5Y)0.43
EPS Next 2Y5.98%
EPS Next 3Y6.79%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.67, SIG pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.31, SIG is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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.
The dividend of SIG decreased recently.
Dividend Growth(5Y)-5.93%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
35.52% of the earnings are spent on dividend by SIG. This is a low number and sustainable payout ratio.
DP35.52%
EPS Next 2Y5.98%
EPS Next 3Y6.79%
92.63
+5.38 (+6.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners115.18%
Inst Owner Change-0.14%
Ins Owners3.67%
Ins Owner Change0.8%
Market Cap3.79B
Revenue(TTM)6.82B
Net Income(TTM)145.00M
Analysts77.33
Price Target110.95 (19.78%)
Short Float %14.43%
Short Ratio7.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend1.54
Dividend Growth(5Y)-5.93%
DP35.52%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)73.99%
Min EPS beat(2)30.08%
Max EPS beat(2)117.91%
EPS beat(4)4
Avg EPS beat(4)41.53%
Min EPS beat(4)4.81%
Max EPS beat(4)117.91%
EPS beat(8)7
Avg EPS beat(8)22.95%
EPS beat(12)11
Avg EPS beat(12)19.99%
EPS beat(16)14
Avg EPS beat(16)24.72%
Revenue beat(2)2
Avg Revenue beat(2)0.88%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.19%
Revenue beat(4)3
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-0.1%
Max Revenue beat(4)1.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)8
Avg Revenue beat(16)-0.07%
PT rev (1m)5.46%
PT rev (3m)15.9%
EPS NQ rev (1m)-2.9%
EPS NQ rev (3m)-7.63%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)2.01%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.56 | ||
| P/FCF | 6.42 | ||
| P/OCF | 5.25 | ||
| P/B | 2.2 | ||
| P/tB | 3.79 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)10.04
EY10.84%
EPS(NY)10.35
Fwd EY11.18%
FCF(TTM)14.43
FCFY15.58%
OCF(TTM)17.65
OCFY19.05%
SpS166.57
BVpS42.02
TBVpS24.45
PEG (NY)654.34
PEG (5Y)0.43
Graham Number97.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.68% | ||
| ROE | 8.43% | ||
| ROCE | 14.53% | ||
| ROIC | 11.48% | ||
| ROICexc | 12.25% | ||
| ROICexgc | 15.47% | ||
| OM | 7.88% | ||
| PM (TTM) | 2.13% | ||
| GM | 39.75% | ||
| FCFM | 8.66% |
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%
ROICexgc growth 3Y-25.96%
ROICexgc 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-Score7
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.69% | ||
| Cap/Sales | 1.93% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.38% | ||
| Profit Quality | 407.59% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 3.33 |
F-Score7
WACC9.82%
ROIC/WACC1.17
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)7.61%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%162.5%
EPS Next Y0.01%
EPS Next 2Y5.98%
EPS Next 3Y6.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.4%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%3.14%
Revenue Next Year2.1%
Revenue Next 2Y1.76%
Revenue Next 3Y1.47%
Revenue Next 5YN/A
EBIT growth 1Y-4.02%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year34.03%
EBIT Next 3Y13.32%
EBIT Next 5YN/A
FCF growth 1Y-3.76%
FCF growth 3Y-27.04%
FCF growth 5Y0.87%
OCF growth 1Y-3.4%
OCF growth 3Y-22.25%
OCF growth 5Y1.24%
SIGNET JEWELERS LTD / SIG FAQ
What is the fundamental rating for SIG stock?
ChartMill assigns a fundamental rating of 6 / 10 to SIG.
What is the valuation status of SIGNET JEWELERS LTD (SIG) stock?
ChartMill assigns a valuation rating of 7 / 10 to SIGNET JEWELERS LTD (SIG). This can be considered as Undervalued.
How profitable is SIGNET JEWELERS LTD (SIG) stock?
SIGNET JEWELERS LTD (SIG) has a profitability rating of 6 / 10.
What is the expected EPS growth for SIGNET JEWELERS LTD (SIG) stock?
The Earnings per Share (EPS) of SIGNET JEWELERS LTD (SIG) is expected to grow by 0.01% in the next year.
Can you provide the dividend sustainability for SIG stock?
The dividend rating of SIGNET JEWELERS LTD (SIG) is 4 / 10 and the dividend payout ratio is 35.52%.