SLEEP NUMBER CORP (SNBR) Stock Fundamental Analysis
NASDAQ:SNBR - Nasdaq - US83125X1037 - Common Stock - Currency: USD
Taking everything into account, SNBR scores 2 out of 10 in our fundamental rating. SNBR was compared to 121 industry peers in the Specialty Retail industry. SNBR has a bad profitability rating. Also its financial health evaluation is rather negative. SNBR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SNBR had negative earnings in the past year.
SNBR had a positive operating cash flow in the past year.
In multiple years SNBR reported negative net income over the last 5 years.
SNBR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SNBR's Return On Assets of -2.36% is on the low side compared to the rest of the industry. SNBR is outperformed by 63.64% of its industry peers.
The Return On Invested Capital of SNBR (6.48%) is better than 60.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SNBR is significantly below the industry average of 13.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.36% | ||
| ROE | N/A | ||
| ROIC | 6.48% |
ROA(3y)-0.04%
ROA(5y)6.8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.69%
ROIC(5y)19.87%
1.3 Margins
The Operating Margin of SNBR (2.43%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SNBR has declined.
With an excellent Gross Margin value of 59.61%, SNBR belongs to the best of the industry, outperforming 87.60% of the companies in the same industry.
In the last couple of years the Gross Margin of SNBR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.43% | ||
| PM (TTM) | N/A | ||
| GM | 59.61% |
OM growth 3Y-34.99%
OM growth 5Y-18.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SNBR is destroying value.
Compared to 1 year ago, SNBR has more shares outstanding
The number of shares outstanding for SNBR has been reduced compared to 5 years ago.
The debt/assets ratio for SNBR is higher compared to a year ago.
2.2 Solvency
SNBR has an Altman-Z score of 0.40. This is a bad value and indicates that SNBR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.40, SNBR is doing worse than 79.34% of the companies in the same industry.
The Debt to FCF ratio of SNBR is 150.25, which is on the high side as it means it would take SNBR, 150.25 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 150.25, SNBR is not doing good in the industry: 60.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 150.25 | ||
| Altman-Z | 0.4 |
ROIC/WACC0.74
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.20 indicates that SNBR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.20, SNBR is doing worse than 97.52% of the companies in the same industry.
SNBR has a Quick Ratio of 0.20. This is a bad value and indicates that SNBR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SNBR (0.09) is worse than 96.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.50% over the past year.
The Revenue for SNBR has decreased by -10.87% in the past year. This is quite bad
The Revenue has been decreasing by -0.19% on average over the past years.
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-15.15%
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y-8.34%
Revenue growth 5Y-0.19%
Sales Q2Q%-16.41%
3.2 Future
Based on estimates for the next years, SNBR will show a very strong growth in Earnings Per Share. The EPS will grow by 36.85% on average per year.
Based on estimates for the next years, SNBR will show a small growth in Revenue. The Revenue will grow by 0.46% on average per year.
EPS Next Y55.12%
EPS Next 2Y47.66%
EPS Next 3Y41.21%
EPS Next 5Y36.85%
Revenue Next Year-7.46%
Revenue Next 2Y-1.81%
Revenue Next 3Y0.29%
Revenue Next 5Y0.46%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SNBR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 43.96, SNBR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SNBR is on the same level as its industry peers.
SNBR is valuated expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SNBR is valued cheaply inside the industry as 98.35% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SNBR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.41 | ||
| EV/EBITDA | 1.68 |
4.3 Compensation for Growth
SNBR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SNBR's earnings are expected to grow with 41.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.66%
EPS Next 3Y41.21%
5. Dividend
5.1 Amount
No dividends for SNBR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.13
-0.92 (-11.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners90.07%
Inst Owner Change0.21%
Ins Owners3.64%
Ins Owner Change28.54%
Market Cap161.57M
Analysts50
Price Target10.2 (43.06%)
Short Float %11.81%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.6%
Min EPS beat(2)8.9%
Max EPS beat(2)18.3%
EPS beat(4)3
Avg EPS beat(4)5.71%
Min EPS beat(4)-45.73%
Max EPS beat(4)41.39%
EPS beat(8)5
Avg EPS beat(8)26.97%
EPS beat(12)7
Avg EPS beat(12)45.89%
EPS beat(16)9
Avg EPS beat(16)33.78%
Revenue beat(2)0
Avg Revenue beat(2)-5.71%
Min Revenue beat(2)-6.21%
Max Revenue beat(2)-5.22%
Revenue beat(4)0
Avg Revenue beat(4)-4.43%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)-2.75%
Revenue beat(8)1
Avg Revenue beat(8)-4.36%
Revenue beat(12)3
Avg Revenue beat(12)-2.77%
Revenue beat(16)4
Avg Revenue beat(16)-3.32%
PT rev (1m)-30.23%
PT rev (3m)-20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-98.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-208.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.73%
Revenue NY rev (1m)-8.99%
Revenue NY rev (3m)-8.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 43.96 | ||
| P/S | 0.1 | ||
| P/FCF | 44.41 | ||
| P/OCF | 5.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 1.68 |
EPS(TTM)-0.95
EYN/A
EPS(NY)0.16
Fwd EY2.27%
FCF(TTM)0.16
FCFY2.25%
OCF(TTM)1.2
OCFY16.8%
SpS74.24
BVpS-19.93
TBVpS-22.86
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.36% | ||
| ROE | N/A | ||
| ROCE | -86.73% | ||
| ROIC | 6.48% | ||
| ROICexc | 6.5% | ||
| ROICexgc | 7.5% | ||
| OM | 2.43% | ||
| PM (TTM) | N/A | ||
| GM | 59.61% | ||
| FCFM | 0.22% |
ROA(3y)-0.04%
ROA(5y)6.8%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)7.69%
ROIC(5y)19.87%
ROICexc(3y)7.72%
ROICexc(5y)20.02%
ROICexgc(3y)8.92%
ROICexgc(5y)24.22%
ROCE(3y)152.05%
ROCE(5y)421.6%
ROICexcg growth 3Y-45.92%
ROICexcg growth 5Y-20.82%
ROICexc growth 3Y-44.92%
ROICexc growth 5Y-20.21%
OM growth 3Y-34.99%
OM growth 5Y-18.09%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.42%
GM growth 5Y-0.76%
F-Score5
Asset Turnover1.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 150.25 | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 35.43% | ||
| Cap/Sales | 1.4% | ||
| Interest Coverage | 0.91 | ||
| Cash Conversion | 25.3% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.2 | ||
| Quick Ratio | 0.09 | ||
| Altman-Z | 0.4 |
F-Score5
WACC8.71%
ROIC/WACC0.74
Cap/Depr(3y)71.87%
Cap/Depr(5y)77.97%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)37.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-15.15%
EPS Next Y55.12%
EPS Next 2Y47.66%
EPS Next 3Y41.21%
EPS Next 5Y36.85%
Revenue 1Y (TTM)-10.87%
Revenue growth 3Y-8.34%
Revenue growth 5Y-0.19%
Sales Q2Q%-16.41%
Revenue Next Year-7.46%
Revenue Next 2Y-1.81%
Revenue Next 3Y0.29%
Revenue Next 5Y0.46%
EBIT growth 1Y5.99%
EBIT growth 3Y-40.41%
EBIT growth 5Y-18.25%
EBIT Next Year272.9%
EBIT Next 3Y68.78%
EBIT Next 5Y51.81%
FCF growth 1Y105.51%
FCF growth 3Y-75.01%
FCF growth 5Y-51.09%
OCF growth 1Y400.65%
OCF growth 3Y-55.11%
OCF growth 5Y-32.18%