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

Last update: Jul 12, 2024

Our stock screener has spotted SIGNET JEWELERS LTD (NYSE:SIG) as an undervalued stock with solid fundamentals. NYSE:SIG shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

Valuation Examination 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:

SIG is valuated reasonably with a Price/Earnings ratio of 9.34.
86.40% of the companies in the same industry are more expensive than SIG, based on the Price/Earnings ratio.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.34, the valuation of SIG can be described as very cheap.
Based on the Price/Forward Earnings ratio, SIG is valued cheaper than 90.40% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, SIG is valued rather cheaply.
SIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIG is cheaper than 89.60% of the companies in the same industry.
95.20% of the companies in the same industry are more expensive than SIG, based on the Price/Free Cash Flow ratio.
The decent profitability rating of SIG may justify a higher PE ratio.

Profitability Insights: NYSE:SIG

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:SIG, the assigned 7 is a significant indicator of profitability:

Looking at the Return On Assets, with a value of 10.52%, SIG belongs to the top of the industry, outperforming 85.60% of the companies in the same industry.
The Return On Equity of SIG (26.85%) is better than 82.40% of its industry peers.
SIG has a better Return On Invested Capital (10.83%) than 77.60% of its industry peers.
SIG has a Profit Margin of 9.22%. This is amongst the best in the industry. SIG outperforms 90.40% of its industry peers.
SIG's Operating Margin of 8.14% is fine compared to the rest 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.
In the last couple of years the Gross Margin of SIG has grown nicely.

Health Assessment of NYSE:SIG

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:

SIG has an Altman-Z score of 3.18. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG has a better Altman-Z score (3.18) than 67.20% of its industry peers.
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's Current ratio of 1.67 is fine compared to the rest of the industry. SIG outperforms 67.20% of its industry peers.

Assessing Growth Metrics 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:

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.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

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

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.