SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
NYSE:SIG - New York Stock Exchange, Inc. - BMG812761002 - Common Stock - Currency: USD
Taking everything into account, SIG scores 5 out of 10 in our fundamental rating. SIG was compared to 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of SIG get a neutral evaluation. Nothing too spectacular is happening here. SIG has a bad growth rate and is valued cheaply. 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
SIG has a Return On Assets of -0.62%. This is comparable to the rest of the industry: SIG outperforms 42.15% of its industry peers.
SIG has a Return On Equity of -1.92%. This is comparable to the rest of the industry: SIG outperforms 48.76% of its industry peers.
SIG has a better Return On Invested Capital (10.02%) than 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIG is below the industry average of 13.05%.
The last Return On Invested Capital (10.02%) for SIG is above the 3 year average (9.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.92% | ||
| ROIC | 10.02% |
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 better Operating Margin (7.37%) than 76.86% of its industry peers.
In the last couple of years the Operating Margin of SIG has grown nicely.
SIG's Gross Margin of 39.17% is in line compared to the rest of the industry. SIG outperforms 57.85% 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 | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 39.17% |
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
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
SIG has an Altman-Z score of 2.96. This is not the best score and indicates that SIG is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.96, SIG is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
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 | 2.96 |
ROIC/WACC1.05
WACC9.56%
2.3 Liquidity
SIG has a Current Ratio of 1.48. This is a normal value and indicates that SIG is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.48, SIG is in line with its industry, outperforming 55.37% of the companies in the same industry.
SIG has a Quick Ratio of 1.48. This is a bad value and indicates that SIG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.42, SIG is not doing good in the industry: 61.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
SIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.49%.
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 -6.52%.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)-10.49%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%-1.63%
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%-5.81%
3.2 Future
Based on estimates for the next years, SIG will show a small growth in Earnings Per Share. The EPS will grow by 1.69% on average per year.
Based on estimates for the next years, SIG will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
EPS Next Y-9.05%
EPS Next 2Y1.03%
EPS Next 3Y1.69%
EPS Next 5YN/A
Revenue Next Year-0.04%
Revenue Next 2Y0.61%
Revenue Next 3Y0.68%
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
The Price/Earnings ratio is 6.75, which indicates a rather cheap valuation of SIG.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 90.08% of the companies are valued more expensively.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.42, the valuation of SIG can be described as very cheap.
Based on the Price/Forward Earnings ratio, SIG is valued cheaper than 88.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SIG to the average of the S&P500 Index (20.42), we can say SIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
90.08% of the companies in the same industry are more expensive than SIG, based on the Enterprise Value to EBITDA ratio.
SIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SIG is cheaper than 90.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.1 | ||
| EV/EBITDA | 3.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.32
EPS Next 2Y1.03%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
SIG's Dividend Yield is a higher than the industry average which is at 5.47.
Compared to an average S&P500 Dividend Yield of 2.43, SIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
The earnings of SIG are negative and hence is the payout ratio. SIG will probably not be able to sustain this dividend level.
DP-188.48%
EPS Next 2Y1.03%
EPS Next 3Y1.69%
NYSE:SIG (5/7/2025, 10:01:55 AM)
62.225
+1.48 (+2.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change0.55%
Ins Owners3.47%
Ins Owner Change4.05%
Market Cap2.67B
Analysts74.55
Price Target73.24 (17.7%)
Short Float %13.39%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.54
Dividend Growth(5Y)-5.93%
DP-188.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.02%
Min EPS beat(2)-24.84%
Max EPS beat(2)4.81%
EPS beat(4)3
Avg EPS beat(4)4.42%
Min EPS beat(4)-24.84%
Max EPS beat(4)29.07%
EPS beat(8)7
Avg EPS beat(8)9.73%
EPS beat(12)11
Avg EPS beat(12)19.59%
EPS beat(16)14
Avg EPS beat(16)29.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-0.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.31%
Revenue beat(16)8
Avg Revenue beat(16)0.93%
PT rev (1m)-7.24%
PT rev (3m)-12.44%
EPS NQ rev (1m)0.49%
EPS NQ rev (3m)-0.58%
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-10.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.75 | ||
| Fwd PE | 7.42 | ||
| P/S | 0.4 | ||
| P/FCF | 6.1 | ||
| P/OCF | 4.52 | ||
| P/B | 1.44 | ||
| P/tB | 2.51 | ||
| EV/EBITDA | 3.12 |
EPS(TTM)9.22
EY14.82%
EPS(NY)8.39
Fwd EY13.48%
FCF(TTM)10.21
FCFY16.4%
OCF(TTM)13.77
OCFY22.14%
SpS156.27
BVpS43.17
TBVpS24.77
PEG (NY)N/A
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.92% | ||
| ROCE | 12.69% | ||
| ROIC | 10.02% | ||
| ROICexc | 11.86% | ||
| ROICexgc | 15.6% | ||
| OM | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 39.17% | ||
| FCFM | 6.53% |
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-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 103.24% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 35.81 | ||
| Cash Conversion | 91.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.96 |
F-Score5
WACC9.56%
ROIC/WACC1.05
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)-10.49%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%-1.63%
EPS Next Y-9.05%
EPS Next 2Y1.03%
EPS Next 3Y1.69%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%-5.81%
Revenue Next Year-0.04%
Revenue Next 2Y0.61%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
EBIT growth 1Y-20.97%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year33.17%
EBIT Next 3Y8.95%
EBIT Next 5YN/A
FCF growth 1Y3.92%
FCF growth 3Y-27.04%
FCF growth 5Y0.87%
OCF growth 1Y8.05%
OCF growth 3Y-22.25%
OCF growth 5Y1.24%