SIGNET JEWELERS LTD (SIG)
BMG812761002 - Common Stock
SIG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 125 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, SIG could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SIG had positive earnings in the past year.
In the past year SIG had a positive cash flow from operations.
Of the past 5 years SIG 4 years were profitable.
SIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.39%, SIG belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
The Return On Equity of SIG (27.49%) is better than 82.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.58%, SIG is in the better half of 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 below the industry average of 13.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 27.49% | ||
| ROIC | 10.58% |
ROA(3y)9.25%
ROA(5y)5.62%
ROE(3y)25.34%
ROE(5y)15.46%
ROIC(3y)11.82%
ROIC(5y)8.87%
1.3 Margins
With an excellent Profit Margin value of 10.82%, SIG belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
With an excellent Operating Margin value of 8.55%, SIG belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
In the last couple of years the Operating Margin of SIG has grown nicely.
SIG's Gross Margin of 39.40% is in line compared to the rest of the industry. SIG outperforms 58.73% of its industry peers.
SIG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.55% | ||
| PM (TTM) | 10.82% | ||
| GM | 39.4% |
OM growth 3Y42.65%
OM growth 5Y34.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.9%
GM growth 5Y2.06%
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.
The number of shares outstanding for SIG has been reduced compared to 1 year ago.
SIG has less shares outstanding than it did 5 years ago.
SIG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.07 indicates that SIG is not in any danger for bankruptcy at the moment.
SIG's Altman-Z score of 3.07 is fine compared to the rest of the industry. SIG outperforms 66.67% 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 | 0.35 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.17
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.79 indicates that SIG should not have too much problems paying its short term obligations.
The Current ratio of SIG (1.79) is better than 71.43% 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.
With a decent Quick ratio value of 0.81, SIG is doing good in the industry, outperforming 63.49% of the companies in the same industry.
| 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%.
Measured over the past years, SIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.95% on average per year.
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -8.56% in the last year.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.80% yearly.
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
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.
Based on estimates for the next years, SIG will show a small growth in Revenue. The Revenue will grow by 0.57% on average per year.
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
A Price/Earnings ratio of 9.60 indicates a reasonable valuation of SIG.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.60, SIG is valued rather cheaply.
A Price/Forward Earnings ratio of 9.24 indicates a reasonable valuation of SIG.
Based on the Price/Forward Earnings ratio, SIG is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of SIG to the average of the S&P500 Index (20.15), we can say SIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 82.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.44 | ||
| EV/EBITDA | 4.09 |
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.
The decent profitability rating of SIG 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)2.48
PEG (5Y)0.4
EPS Next 2Y9.65%
EPS Next 3Y12.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.14%, SIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.25, SIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, SIG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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
SIG pays out 9.38% of its income as dividend. This is a sustainable payout ratio.
DP9.38%
EPS Next 2Y9.65%
EPS Next 3Y12.16%
SIGNET JEWELERS LTD
NYSE:SIG (5/17/2024, 7:26:19 PM)
After market: 98.85 0 (0%)98.85
-2.6 (-2.56%)
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 Cap4.40B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.6 | ||
| Fwd PE | 9.24 | ||
| 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)2.48
PEG (5Y)0.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.39% | ||
| ROE | 27.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.55% | ||
| 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
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OCF growth 1Y
OCF growth 3Y
OCF growth 5Y