SIGNET JEWELERS LTD (SIG)
BMG812761002 - Common Stock
Taking everything into account, SIG scores 6 out of 10 in our fundamental rating. SIG was compared to 126 industry peers in the Specialty Retail industry. SIG gets an excellent profitability rating and is at the same time showing great financial health properties. SIG may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make SIG suitable 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.
SIG had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SIG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 11.39%, SIG belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
The Return On Equity of SIG (27.49%) is better than 82.54% of its industry peers.
With a decent Return On Invested Capital value of 10.80%, SIG is doing good in the industry, outperforming 76.19% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIG is in line with the industry average of 13.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 27.49% | ||
| ROIC | 10.8% |
ROA(3y)9.25%
ROA(5y)5.62%
ROE(3y)25.34%
ROE(5y)15.46%
ROIC(3y)11.98%
ROIC(5y)8.96%
1.3 Margins
SIG has a better Profit Margin (10.82%) than 93.65% of its industry peers.
SIG has a Operating Margin of 8.72%. This is amongst the best in the industry. SIG outperforms 80.95% of its industry peers.
SIG's Operating Margin has improved in the last couple of years.
SIG has a Gross Margin of 39.40%. This is comparable to the rest of the industry: SIG outperforms 59.52% of its industry peers.
SIG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.72% | ||
| PM (TTM) | 10.82% | ||
| GM | 39.4% |
OM growth 3Y44.66%
OM growth 5Y35.9%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.92%
GM growth 5Y2.07%
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
The number of shares outstanding for SIG has been reduced compared to 5 years ago.
The debt/assets ratio for SIG has been reduced compared to a year ago.
2.2 Solvency
SIG has an Altman-Z score of 3.09. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG has a better Altman-Z score (3.09) than 72.22% 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 | 0.35 | ||
| Altman-Z | 3.09 |
ROIC/WACC1.16
WACC9.33%
2.3 Liquidity
SIG has a Current Ratio of 1.79. This is a normal value and indicates that SIG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SIG (1.79) is better than 69.84% of its industry peers.
SIG has a Quick Ratio of 1.79. 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 has a better Quick ratio (0.81) than 60.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
SIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.71%.
SIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.95% yearly.
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -8.56% in the last year.
Measured over the past years, SIG shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)-12.71%
EPS 3Y88.41%
EPS 5Y23.95%
EPS growth Q2Q21.92%
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y11.12%
Revenue growth 5Y2.8%
Revenue growth Q2Q-6.32%
3.2 Future
Based on estimates for the next years, SIG will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.16% on average per year.
SIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.57% yearly.
EPS Next Y3.86%
EPS Next 2Y9.65%
EPS Next 3Y12.16%
EPS Next 5YN/A
Revenue Next Year-5.13%
Revenue Next 2Y-1.33%
Revenue Next 3Y0.57%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.88, the valuation of SIG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 82.54% of the companies listed in the same industry.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.52, the valuation of SIG can be described as very reasonable.
SIG's Price/Forward Earnings ratio is rather cheap when compared to the industry. SIG is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. SIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 9.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 93.65% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIG indicates a somewhat cheap valuation: SIG is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SIG has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SIG's earnings are expected to grow with 12.16% in the coming years.
PEG (NY)2.56
PEG (5Y)0.41
EPS Next 2Y9.65%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.49, SIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, SIG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
The dividend of SIG decreases each year by -3.62%.
SIG has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-3.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
9.38% of the earnings are spent on dividend by SIG. This is a low number and sustainable payout ratio.
DP9.38%
EPS Next 2Y9.65%
EPS Next 3Y12.16%
SIGNET JEWELERS LTD
NYSE:SIG (4/26/2024, 7:16:10 PM)
After market: 101 -0.8 (-0.79%)101.8
+2.14 (+2.15%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 9.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.56
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 27.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.72% | ||
| PM (TTM) | 10.82% | ||
| GM | 39.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.79 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-12.71%
EPS 3Y88.41%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y11.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y