SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
USA - NYSE:SIG - BMG812761002 - Common Stock
101.01 USD
-1.42 (-1.39%)
100.95 USD
-0.06 (-0.06%)
Taking everything into account, SIG scores 6 out of 10 in our fundamental rating. 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 has a bad growth rate and is valued cheaply. These ratings would make SIG suitable 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.
In the past 5 years SIG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.44%, SIG perfoms like the industry average, outperforming 57.38% of the companies in the same industry.
The Return On Equity of SIG (7.54%) is better than 63.93% of its industry peers.
SIG has a better Return On Invested Capital (11.13%) than 77.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SIG is below the industry average of 11.81%.
The last Return On Invested Capital (11.13%) for SIG is above the 3 year average (9.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 7.54% | ||
| ROIC | 11.13% |
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 Profit Margin (1.92%) which is comparable to the rest of the industry.
With a decent Operating Margin value of 7.77%, SIG is doing good in the industry, outperforming 77.05% of the companies in the same industry.
SIG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.50%, SIG is in the better half of the industry, outperforming 60.66% 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 | 7.77% | ||
| PM (TTM) | 1.92% | ||
| GM | 39.5% |
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
SIG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SIG has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.46 indicates that SIG is not in any danger for bankruptcy at the moment.
SIG's Altman-Z score of 3.46 is fine compared to the rest of the industry. SIG outperforms 77.05% 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 | 3.46 |
ROIC/WACC1.18
WACC9.44%
2.3 Liquidity
A Current Ratio of 1.54 indicates that SIG should not have too much problems paying its short term obligations.
SIG's Current ratio of 1.54 is fine compared to the rest of the industry. SIG outperforms 63.93% of its industry peers.
SIG has a Quick Ratio of 1.54. 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 (0.30) is worse than 77.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.43% over the past year.
SIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.38% yearly.
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -1.63% in the last year.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)3.43%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%28.8%
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.96%
3.2 Future
The Earnings Per Share is expected to grow by 7.39% on average over the next years.
SIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.29% yearly.
EPS Next Y0.17%
EPS Next 2Y5.26%
EPS Next 3Y7.39%
EPS Next 5YN/A
Revenue Next Year1.94%
Revenue Next 2Y1.59%
Revenue Next 3Y1.29%
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.
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
With a Price/Earnings ratio of 10.47, the valuation of SIG can be described as very reasonable.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 81.97% of the companies are valued more expensively.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
SIG is valuated reasonably with a Price/Forward Earnings ratio of 9.89.
Based on the Price/Forward Earnings ratio, SIG is valued cheaply inside the industry as 82.79% 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 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued a bit cheaper than the industry average as 77.05% 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 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.11 | ||
| EV/EBITDA | 5.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SIG does not grow enough to justify the current Price/Earnings ratio.
SIG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)60.26
PEG (5Y)0.49
EPS Next 2Y5.26%
EPS Next 3Y7.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.25%, SIG has a reasonable but not impressive dividend return.
SIG's Dividend Yield is a higher than the industry average which is at 5.49.
With a Dividend Yield of 1.25, SIG pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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
42.48% of the earnings are spent on dividend by SIG. This is a bit on the high side, but may be sustainable.
DP42.48%
EPS Next 2Y5.26%
EPS Next 3Y7.39%
101.01
-1.42 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners114.88%
Inst Owner Change-0.07%
Ins Owners3.67%
Ins Owner Change3.4%
Market Cap4.14B
Revenue(TTM)6.78B
Net Income(TTM)130.40M
Analysts76.92
Price Target105.21 (4.16%)
Short Float %17.61%
Short Ratio7.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.54
Dividend Growth(5Y)-5.93%
DP42.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.71%
Min EPS beat(2)13.33%
Max EPS beat(2)30.08%
EPS beat(4)3
Avg EPS beat(4)5.85%
Min EPS beat(4)-24.84%
Max EPS beat(4)30.08%
EPS beat(8)7
Avg EPS beat(8)12.15%
EPS beat(12)11
Avg EPS beat(12)21.43%
EPS beat(16)14
Avg EPS beat(16)23.4%
Revenue beat(2)2
Avg Revenue beat(2)0.81%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.19%
Revenue beat(4)2
Avg Revenue beat(4)-0.19%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)1.19%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)5
Avg Revenue beat(12)-0.2%
Revenue beat(16)8
Avg Revenue beat(16)0.31%
PT rev (1m)1.4%
PT rev (3m)13.88%
EPS NQ rev (1m)0.59%
EPS NQ rev (3m)104.43%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 9.89 | ||
| P/S | 0.61 | ||
| P/FCF | 9.11 | ||
| P/OCF | 6.71 | ||
| P/B | 2.39 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)9.65
EY9.55%
EPS(NY)10.22
Fwd EY10.11%
FCF(TTM)11.09
FCFY10.98%
OCF(TTM)15.05
OCFY14.9%
SpS165.54
BVpS42.21
TBVpS24.63
PEG (NY)60.26
PEG (5Y)0.49
Graham Number95.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 7.54% | ||
| ROCE | 14.08% | ||
| ROIC | 11.13% | ||
| ROICexc | 12.03% | ||
| ROICexgc | 15.19% | ||
| OM | 7.77% | ||
| PM (TTM) | 1.92% | ||
| GM | 39.5% | ||
| FCFM | 6.7% |
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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 109.89% | ||
| Cap/Sales | 2.39% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.34% | ||
| Profit Quality | 348.16% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z | 3.46 |
F-Score7
WACC9.44%
ROIC/WACC1.18
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)3.43%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%28.8%
EPS Next Y0.17%
EPS Next 2Y5.26%
EPS Next 3Y7.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.63%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%2.96%
Revenue Next Year1.94%
Revenue Next 2Y1.59%
Revenue Next 3Y1.29%
Revenue Next 5YN/A
EBIT growth 1Y-5.84%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year36.34%
EBIT Next 3Y13.32%
EBIT Next 5YN/A
FCF growth 1Y-13.26%
FCF growth 3Y-27.04%
FCF growth 5Y0.87%
OCF growth 1Y-6.55%
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 0.17% in the next year.
Can you provide the dividend sustainability for SIG stock?
The dividend rating of SIGNET JEWELERS LTD (SIG) is 3 / 10 and the dividend payout ratio is 42.48%.