Investors should take notice of NYSE:SIG—it offers a great deal for the fundamentals it presents.

Last update: May 8, 2024

Take a closer look at SIGNET JEWELERS LTD (NYSE:SIG), a remarkable value stock uncovered by our stock screener. NYSE:SIG excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Understanding NYSE:SIG's Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:SIG, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 9.39, which indicates a very decent valuation of SIG.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
SIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.11.
SIG is valuated reasonably with a Price/Forward Earnings ratio of 9.04.
87.30% of the companies in the same industry are more expensive than SIG, based on the Price/Forward Earnings ratio.
SIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.39.
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaper than 93.65% of the companies in the same industry.
SIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SIG is cheaper than 81.75% of the companies in the same industry.
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 utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:SIG has earned a 7 out of 10:

Looking at the Return On Assets, with a value of 11.39%, SIG belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
SIG has a better Return On Equity (27.49%) than 82.54% of its industry peers.
SIG has a Return On Invested Capital of 10.58%. This is in the better half of the industry: SIG outperforms 75.40% of its industry peers.
SIG has a better Profit Margin (10.82%) than 92.86% of its industry peers.
SIG's Operating Margin of 8.55% is amongst the best of the industry. SIG outperforms 80.95% 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.

Deciphering NYSE:SIG's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SIG scores a 7 out of 10:

An Altman-Z score of 3.06 indicates that SIG is not in any danger for bankruptcy at the moment.
SIG has a better Altman-Z score (3.06) than 67.46% 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.
With a decent Current ratio value of 1.79, SIG is doing good in the industry, outperforming 69.05% of the companies in the same industry.
Looking at the Quick ratio, with a value of 0.81, SIG is in the better half of the industry, outperforming 61.11% of the companies in the same industry.

What does the Growth looks like for NYSE:SIG

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:SIG has earned a 4 for growth:

The Earnings Per Share has been growing by 23.95% on average over the past years. This is a very strong growth
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.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.