When you look at NYSE:SIG, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Apr 16, 2024

Uncover the hidden value in SIGNET JEWELERS LTD (NYSE:SIG) as our stock screening tool recommends it as an undervalued choice. NYSE:SIG maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Looking at the Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:SIG has earned a 8 for valuation:

With a Price/Earnings ratio of 9.24, the valuation of SIG can be described as very reasonable.
Based on the Price/Earnings ratio, SIG is valued cheaper than 83.20% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.05, SIG is valued rather cheaply.
The Price/Forward Earnings ratio is 8.90, which indicates a very decent valuation of SIG.
Based on the Price/Forward Earnings ratio, SIG is valued cheaper than 84.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.53. SIG is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 93.60% of the companies are valued more expensively.
80.80% of the companies in the same industry are more expensive than SIG, based on the Price/Free Cash Flow ratio.
SIG has a very decent profitability rating, which may justify a higher PE ratio.
SIG's earnings are expected to grow with 12.16% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: NYSE:SIG

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:SIG, the assigned 7 is noteworthy for profitability:

SIG has a Return On Assets of 11.39%. This is amongst the best in the industry. SIG outperforms 88.00% of its industry peers.
Looking at the Return On Equity, with a value of 27.49%, SIG belongs to the top of the industry, outperforming 82.40% of the companies in the same industry.
SIG has a better Return On Invested Capital (10.80%) than 75.20% of its industry peers.
SIG has a better Profit Margin (10.82%) than 93.60% of its industry peers.
The Operating Margin of SIG (8.72%) is better than 80.00% of its industry peers.
SIG's Operating Margin has improved in the last couple of years.
SIG's Gross Margin has improved in the last couple of years.

Assessing Health for NYSE:SIG

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SIG has earned a 7 out of 10:

SIG has an Altman-Z score of 3.06. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, SIG is in the better half of the industry, outperforming 72.00% 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.
SIG has a better Current ratio (1.79) than 70.40% of its industry peers.
SIG's Quick ratio of 0.81 is fine compared to the rest of the industry. SIG outperforms 60.80% of its industry peers.

Unpacking NYSE:SIG's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:SIG has achieved a 4 out of 10:

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.
The Earnings Per Share is expected to grow by 12.16% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of SIG

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.