NYSE:SIG appears to be flying under the radar despite its strong fundamentals.

Last update: May 30, 2024

Our stock screening tool has pinpointed SIGNET JEWELERS LTD (NYSE:SIG) as an undervalued stock option. NYSE:SIG retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Valuation Analysis for NYSE:SIG

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:SIG boasts a 8 out of 10:

The Price/Earnings ratio is 10.13, which indicates a very decent valuation of SIG.
SIG's Price/Earnings ratio is rather cheap when compared to the industry. SIG is cheaper than 84.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.82. SIG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.78, the valuation of SIG can be described as very reasonable.
84.00% of the companies in the same industry are more expensive than SIG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 19.80. 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 92.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SIG is valued cheaper than 82.40% of the companies in the same industry.
SIG has a very decent profitability rating, which 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.

Evaluating Profitability: NYSE:SIG

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SIG was assigned a score of 7 for profitability:

SIG's Return On Assets of 11.39% is amongst the best of the industry. SIG outperforms 88.80% of its industry peers.
The Return On Equity of SIG (27.49%) is better than 82.40% of its industry peers.
SIG has a better Return On Invested Capital (10.58%) than 76.00% of its industry peers.
SIG has a better Profit Margin (10.82%) than 92.80% of its industry peers.
The Operating Margin of SIG (8.55%) is better than 80.80% 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.

Understanding NYSE:SIG's Health Score

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 3.11. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.11, SIG is doing good in the industry, outperforming 68.80% of the companies in the same industry.
SIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Looking at the Current ratio, with a value of 1.79, SIG is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
SIG has a better Quick ratio (0.81) than 64.00% of its industry peers.

Growth Analysis 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
SIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.16% yearly.

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

Our latest full fundamental report of SIG contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.