NYSE:SIG is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Jun 20, 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.

A Closer Look at Valuation for NYSE:SIG

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:

Based on the Price/Earnings ratio of 9.47, the valuation of SIG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 87.20% of the companies listed in the same industry.
SIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.73.
With a Price/Forward Earnings ratio of 7.45, the valuation of SIG can be described as very cheap.
SIG's Price/Forward Earnings ratio is rather cheap when compared to the industry. SIG is cheaper than 90.40% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SIG to the average of the S&P500 Index (20.21), we can say SIG is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 87.20% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SIG is valued cheaper than 93.60% of the companies in the same industry.
SIG has a very decent profitability rating, which may justify a higher PE ratio.

Profitability Examination for 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:

With an excellent Return On Assets value of 10.52%, SIG belongs to the best of the industry, outperforming 86.40% of the companies in the same industry.
SIG's Return On Equity of 26.85% is amongst the best of the industry. SIG outperforms 82.40% of its industry peers.
SIG's Return On Invested Capital of 10.83% is fine compared to the rest of the industry. SIG outperforms 76.80% of its industry peers.
The Profit Margin of SIG (9.22%) is better than 92.00% of its industry peers.
SIG has a Operating Margin of 8.14%. This is in the better half of the industry: SIG outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of SIG has grown nicely.
SIG's Gross Margin has improved in the last couple of years.

Exploring NYSE:SIG's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SIG has received a 7 out of 10:

An Altman-Z score of 3.19 indicates that SIG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, SIG is in the better half of the industry, outperforming 69.60% 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.
SIG's Current ratio of 1.67 is fine compared to the rest of the industry. SIG outperforms 66.40% of its industry peers.

Deciphering 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:

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 11.36% on average per year.

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.

Disclaimer

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.