NYSE:SIG is an undervalued gem with solid fundamentals.

Last update: Aug 5, 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.

Unpacking NYSE:SIG's Valuation Rating

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:SIG has received a 8 out of 10:

Based on the Price/Earnings ratio of 8.12, the valuation of SIG can be described as reasonable.
Based on the Price/Earnings ratio, SIG is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
SIG is valuated cheaply when we compare the Price/Earnings ratio to 29.18, which is the current average of the S&P500 Index.
SIG is valuated cheaply with a Price/Forward Earnings ratio of 6.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 96.80% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.38, SIG is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 95.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SIG is valued cheaply inside the industry as 96.80% of the companies are valued more expensively.
The decent profitability rating of SIG may justify a higher PE ratio.

Profitability Insights: 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 10.52%, SIG belongs to the top of the industry, outperforming 86.40% of the companies in the same industry.
With an excellent Return On Equity value of 26.85%, SIG belongs to the best of the industry, outperforming 82.40% of the companies in the same industry.
SIG has a Return On Invested Capital of 10.83%. This is in the better half of the industry: SIG outperforms 78.40% of its industry peers.
The Profit Margin of SIG (9.22%) is better than 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.
SIG's Operating Margin has improved in the last couple of years.
SIG's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:SIG

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SIG has achieved a 7 out of 10:

SIG has an Altman-Z score of 3.10. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG has a better Altman-Z score (3.10) than 69.60% 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.
Looking at the Current ratio, with a value of 1.67, SIG is in the better half of the industry, outperforming 68.00% of the companies in the same industry.

Growth Analysis for NYSE:SIG

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:SIG was assigned a score of 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 11.37% 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.

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.