SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
NASDAQ:SGC - Nasdaq - US8683581024 - Common Stock - Currency: USD
Overall SGC gets a fundamental rating of 4 out of 10. We evaluated SGC against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. SGC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SGC has a decent growth rate and is not valued too expensively. Finally SGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
SGC had positive earnings in the past year.
In the past year SGC had a positive cash flow from operations.
Of the past 5 years SGC 4 years were profitable.
SGC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.78%, SGC is in line with its industry, outperforming 43.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.77%, SGC is in line with its industry, outperforming 45.83% of the companies in the same industry.
SGC has a worse Return On Invested Capital (4.00%) than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SGC is significantly below the industry average of 11.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.77% | ||
| ROIC | 4% |
ROA(3y)-0.68%
ROA(5y)2.93%
ROE(3y)-2.05%
ROE(5y)5.64%
ROIC(3y)4.82%
ROIC(5y)8.02%
1.3 Margins
SGC has a Profit Margin (1.30%) which is in line with its industry peers.
SGC's Profit Margin has declined in the last couple of years.
The Operating Margin of SGC (2.59%) is worse than 68.75% of its industry peers.
In the last couple of years the Operating Margin of SGC has declined.
Looking at the Gross Margin, with a value of 38.25%, SGC is doing worse than 79.17% of the companies in the same industry.
In the last couple of years the Gross Margin of SGC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.59% | ||
| PM (TTM) | 1.3% | ||
| GM | 38.25% |
OM growth 3Y-22.49%
OM growth 5Y-6.94%
PM growth 3Y-27.09%
PM growth 5Y-7.96%
GM growth 3Y4.03%
GM growth 5Y2.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SGC is destroying value.
SGC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SGC has been increased compared to 5 years ago.
Compared to 1 year ago, SGC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.86 indicates that SGC is not a great score, but indicates only limited risk for bankruptcy at the moment.
SGC has a Altman-Z score (2.86) which is comparable to the rest of the industry.
SGC has a debt to FCF ratio of 5.60. This is a neutral value as SGC would need 5.60 years to pay back of all of its debts.
SGC has a Debt to FCF ratio (5.60) which is in line with its industry peers.
A Debt/Equity ratio of 0.46 indicates that SGC is not too dependend on debt financing.
SGC's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. SGC outperforms 47.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.6 | ||
| Altman-Z | 2.86 |
ROIC/WACC0.45
WACC8.8%
2.3 Liquidity
SGC has a Current Ratio of 2.90. This indicates that SGC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SGC (2.90) is better than 77.08% of its industry peers.
SGC has a Quick Ratio of 1.85. This is a normal value and indicates that SGC is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.85, SGC belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
The earnings per share for SGC have decreased strongly by -38.36% in the last year.
The Earnings Per Share has been decreasing by -1.55% on average over the past years.
SGC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.28%.
The Revenue has been growing by 8.47% on average over the past years. This is quite good.
EPS 1Y (TTM)-38.36%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%-120.83%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.26%
3.2 Future
Based on estimates for the next years, SGC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.55% on average per year.
The Revenue is expected to grow by 2.61% on average over the next years.
EPS Next Y-42.13%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
EPS Next 5Y10.55%
Revenue Next Year-1.31%
Revenue Next 2Y1.46%
Revenue Next 3Y2.35%
Revenue Next 5Y2.61%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.87 indicates a rather expensive valuation of SGC.
Compared to the rest of the industry, the Price/Earnings ratio of SGC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of SGC to the average of the S&P500 Index (27.21), we can say SGC is valued inline with the index average.
A Price/Forward Earnings ratio of 12.75 indicates a correct valuation of SGC.
70.83% of the companies in the same industry are more expensive than SGC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, SGC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 12.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SGC indicates a somewhat cheap valuation: SGC is cheaper than 60.42% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SGC is valued cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.04 | ||
| EV/EBITDA | 8.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.69%
EPS Next 3Y6.7%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.46%, SGC is a good candidate for dividend investing.
SGC's Dividend Yield is rather good when compared to the industry average which is at 3.86. SGC pays more dividend than 89.58% of the companies in the same industry.
SGC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
On average, the dividend of SGC grows each year by 7.14%, which is quite nice.
SGC has been paying a dividend for at least 10 years, so it has a reliable track record.
SGC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.14%
Div Incr Years0
Div Non Decr Years11
5.3 Sustainability
SGC pays out 125.91% of its income as dividend. This is not a sustainable payout ratio.
SGC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP125.91%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
10.74
+0.44 (+4.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners45.47%
Inst Owner Change-4.12%
Ins Owners17.03%
Ins Owner Change2.82%
Market Cap171.63M
Analysts85
Price Target17.34 (61.45%)
Short Float %3.6%
Short Ratio7.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
Yearly Dividend0.56
Dividend Growth(5Y)7.14%
DP125.91%
Div Incr Years0
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-81.78%
Min EPS beat(2)-140.41%
Max EPS beat(2)-23.16%
EPS beat(4)1
Avg EPS beat(4)-42.79%
Min EPS beat(4)-140.41%
Max EPS beat(4)55.59%
EPS beat(8)4
Avg EPS beat(8)20.97%
EPS beat(12)5
Avg EPS beat(12)9.96%
EPS beat(16)6
Avg EPS beat(16)79.11%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.76%
Revenue beat(4)1
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)3.58%
Revenue beat(8)3
Avg Revenue beat(8)-1.08%
Revenue beat(12)5
Avg Revenue beat(12)-1.24%
Revenue beat(16)8
Avg Revenue beat(16)0.61%
PT rev (1m)-20.93%
PT rev (3m)-20.93%
EPS NQ rev (1m)-35.42%
EPS NQ rev (3m)-45.61%
EPS NY rev (1m)-37.42%
EPS NY rev (3m)-48.13%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-3.93%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-4.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.87 | ||
| Fwd PE | 12.75 | ||
| P/S | 0.3 | ||
| P/FCF | 10.04 | ||
| P/OCF | 7.8 | ||
| P/B | 0.88 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 8.67 |
EPS(TTM)0.45
EY4.19%
EPS(NY)0.84
Fwd EY7.84%
FCF(TTM)1.07
FCFY9.96%
OCF(TTM)1.38
OCFY12.81%
SpS35.29
BVpS12.17
TBVpS8.88
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 3.77% | ||
| ROCE | 4.61% | ||
| ROIC | 4% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 5.19% | ||
| OM | 2.59% | ||
| PM (TTM) | 1.3% | ||
| GM | 38.25% | ||
| FCFM | 3.03% |
ROA(3y)-0.68%
ROA(5y)2.93%
ROE(3y)-2.05%
ROE(5y)5.64%
ROIC(3y)4.82%
ROIC(5y)8.02%
ROICexc(3y)5.12%
ROICexc(5y)8.3%
ROICexgc(3y)6.18%
ROICexgc(5y)11.34%
ROCE(3y)5.55%
ROCE(5y)9.23%
ROICexcg growth 3Y-20.14%
ROICexcg growth 5Y-4.61%
ROICexc growth 3Y-16.46%
ROICexc growth 5Y-0.04%
OM growth 3Y-22.49%
OM growth 5Y-6.94%
PM growth 3Y-27.09%
PM growth 5Y-7.96%
GM growth 3Y4.03%
GM growth 5Y2.65%
F-Score5
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 5.6 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 37.23% | ||
| Cap/Sales | 0.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.26% | ||
| Profit Quality | 233.19% | ||
| Current Ratio | 2.9 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 2.86 |
F-Score5
WACC8.8%
ROIC/WACC0.45
Cap/Depr(3y)51.29%
Cap/Depr(5y)98.06%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.83%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-38.36%
EPS 3Y-29.81%
EPS 5Y-1.55%
EPS Q2Q%-120.83%
EPS Next Y-42.13%
EPS Next 2Y6.69%
EPS Next 3Y6.7%
EPS Next 5Y10.55%
Revenue 1Y (TTM)2.28%
Revenue growth 3Y1.75%
Revenue growth 5Y8.47%
Sales Q2Q%-1.26%
Revenue Next Year-1.31%
Revenue Next 2Y1.46%
Revenue Next 3Y2.35%
Revenue Next 5Y2.61%
EBIT growth 1Y-34.51%
EBIT growth 3Y-21.13%
EBIT growth 5Y0.95%
EBIT Next Year34.32%
EBIT Next 3Y16.04%
EBIT Next 5Y11.82%
FCF growth 1Y-23.1%
FCF growth 3YN/A
FCF growth 5Y22.9%
OCF growth 1Y-29.46%
OCF growth 3Y25.09%
OCF growth 5Y10.81%