SUPERIOR GROUP OF COS INC (SGC)
US8683581024 - Common Stock
We assign a fundamental rating of 5 out of 10 to SGC. SGC was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. While SGC seems to be doing ok healthwise, there are quite some concerns on its profitability. 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.
SGC had a positive operating cash flow in the past year.
SGC had positive earnings in 4 of the past 5 years.
SGC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SGC has a Return On Assets of 3.31%. This is comparable to the rest of the industry: SGC outperforms 59.18% of its industry peers.
With a Return On Equity value of 6.75%, SGC perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
SGC has a Return On Invested Capital of 6.60%. This is comparable to the rest of the industry: SGC outperforms 57.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SGC is significantly below the industry average of 11.58%.
The 3 year average ROIC (6.52%) for SGC is below the current ROIC(6.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 6.75% | ||
| ROIC | 6.6% |
ROA(3y)0.44%
ROA(5y)3.02%
ROE(3y)0.26%
ROE(5y)5.97%
ROIC(3y)6.52%
ROIC(5y)8.32%
1.3 Margins
SGC has a Profit Margin (2.37%) which is comparable to the rest of the industry.
SGC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.04%, SGC is doing worse than 61.22% of the companies in the same industry.
In the last couple of years the Operating Margin of SGC has declined.
SGC's Gross Margin of 39.16% is on the low side compared to the rest of the industry. SGC is outperformed by 73.47% of its industry peers.
SGC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.04% | ||
| PM (TTM) | 2.37% | ||
| GM | 39.16% |
OM growth 3Y-28.32%
OM growth 5Y-12.77%
PM growth 3Y-40.81%
PM growth 5Y-19.94%
GM growth 3Y1.48%
GM growth 5Y1.29%
2. Health
2.1 Basic Checks
SGC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SGC has been increased compared to 1 year ago.
SGC has more shares outstanding than it did 5 years ago.
SGC has a better debt/assets ratio than last year.
2.2 Solvency
SGC has an Altman-Z score of 3.25. This indicates that SGC is financially healthy and has little risk of bankruptcy at the moment.
SGC's Altman-Z score of 3.25 is fine compared to the rest of the industry. SGC outperforms 61.22% of its industry peers.
SGC has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as SGC would need 2.10 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.10, SGC is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
SGC has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.39, SGC perfoms like the industry average, outperforming 48.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 3.25 |
ROIC/WACC0.75
WACC8.78%
2.3 Liquidity
SGC has a Current Ratio of 2.86. This indicates that SGC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.86, SGC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
SGC has a Quick Ratio of 1.87. This is a normal value and indicates that SGC is financially healthy and should not expect problems in meeting its short term obligations.
SGC has a Quick ratio of 1.87. This is amongst the best in the industry. SGC outperforms 83.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
SGC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 207.41%, which is quite impressive.
Measured over the past years, SGC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.94% on average per year.
The Revenue has been growing slightly by 4.19% in the past year.
Measured over the past years, SGC shows a quite strong growth in Revenue. The Revenue has been growing by 9.42% on average per year.
EPS 1Y (TTM)207.41%
EPS 3Y-40.03%
EPS 5Y-12.94%
EPS Q2Q%73.68%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y1.04%
Revenue growth 5Y9.42%
Sales Q2Q%9.96%
3.2 Future
Based on estimates for the next years, SGC will show a very strong growth in Earnings Per Share. The EPS will grow by 25.27% on average per year.
SGC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y40.48%
EPS Next 2Y32.08%
EPS Next 3Y34.33%
EPS Next 5Y25.27%
Revenue Next Year5.04%
Revenue Next 2Y4.45%
Revenue Next 3Y4.81%
Revenue Next 5Y4.28%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SGC is valuated rather expensively with a Price/Earnings ratio of 18.80.
SGC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of SGC to the average of the S&P500 Index (27.28), we can say SGC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.26, the valuation of SGC can be described as correct.
SGC's Price/Forward Earnings ratio is in line with the industry average.
SGC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 16.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGC is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
89.80% of the companies in the same industry are more expensive than SGC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.34 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
SGC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SGC's earnings are expected to grow with 34.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y32.08%
EPS Next 3Y34.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.59%, SGC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.88, SGC pays a better dividend. On top of this SGC pays more dividend than 91.84% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, SGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
5.2 History
The dividend of SGC is nicely growing with an annual growth rate of 7.65%!
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)7.65%
Div Incr Years10
Div Non Decr Years11
5.3 Sustainability
68.97% of the earnings are spent on dividend by SGC. This is not a sustainable payout ratio.
SGC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.97%
EPS Next 2Y32.08%
EPS Next 3Y34.33%
SUPERIOR GROUP OF COS INC
NASDAQ:SGC (1/14/2025, 8:05:04 PM)
Premarket: 13.5 -2.1 (-13.46%)15.6
+0.19 (+1.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners43.86%
Inst Owner Change0%
Ins Owners15.15%
Ins Owner Change5.21%
Market Cap254.90M
Analysts85.71
Price Target23.72 (52.05%)
Short Float %2.86%
Short Ratio6.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.59% |
Dividend Growth(5Y)7.65%
DP68.97%
Div Incr Years10
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.79%
Min EPS beat(2)-63.16%
Max EPS beat(2)55.59%
EPS beat(4)3
Avg EPS beat(4)70.1%
Min EPS beat(4)-63.16%
Max EPS beat(4)239.46%
EPS beat(8)4
Avg EPS beat(8)14.2%
EPS beat(12)5
Avg EPS beat(12)18.73%
EPS beat(16)8
Avg EPS beat(16)100.54%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-4.39%
Max Revenue beat(2)3.58%
Revenue beat(4)3
Avg Revenue beat(4)0.75%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)3.58%
Revenue beat(8)4
Avg Revenue beat(8)-1.37%
Revenue beat(12)7
Avg Revenue beat(12)0.4%
Revenue beat(16)10
Avg Revenue beat(16)2.26%
PT rev (1m)0%
PT rev (3m)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)2.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.8 | ||
| Fwd PE | 16.26 | ||
| P/S | 0.45 | ||
| P/FCF | 6.34 | ||
| P/OCF | 5.79 | ||
| P/B | 1.28 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 8.8 |
EPS(TTM)0.83
EY5.32%
EPS(NY)0.96
Fwd EY6.15%
FCF(TTM)2.46
FCFY15.76%
OCF(TTM)2.69
OCFY17.28%
SpS34.73
BVpS12.21
TBVpS9.27
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 6.75% | ||
| ROCE | 7.35% | ||
| ROIC | 6.6% | ||
| ROICexc | 7.01% | ||
| ROICexgc | 8.38% | ||
| OM | 4.04% | ||
| PM (TTM) | 2.37% | ||
| GM | 39.16% | ||
| FCFM | 7.08% |
ROA(3y)0.44%
ROA(5y)3.02%
ROE(3y)0.26%
ROE(5y)5.97%
ROIC(3y)6.52%
ROIC(5y)8.32%
ROICexc(3y)6.79%
ROICexc(5y)8.58%
ROICexgc(3y)8.85%
ROICexgc(5y)12.13%
ROCE(3y)7.26%
ROCE(5y)9.27%
ROICexcg growth 3Y-34.1%
ROICexcg growth 5Y-10.38%
ROICexc growth 3Y-29.06%
ROICexc growth 5Y-5.76%
OM growth 3Y-28.32%
OM growth 5Y-12.77%
PM growth 3Y-40.81%
PM growth 5Y-19.94%
GM growth 3Y1.48%
GM growth 5Y1.29%
F-Score8
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 28.47% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.7% | ||
| Profit Quality | 298.26% | ||
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z | 3.25 |
F-Score8
WACC8.78%
ROIC/WACC0.75
Cap/Depr(3y)103.59%
Cap/Depr(5y)114.71%
Cap/Sales(3y)2.04%
Cap/Sales(5y)2.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)207.41%
EPS 3Y-40.03%
EPS 5Y-12.94%
EPS Q2Q%73.68%
EPS Next Y40.48%
EPS Next 2Y32.08%
EPS Next 3Y34.33%
EPS Next 5Y25.27%
Revenue 1Y (TTM)4.19%
Revenue growth 3Y1.04%
Revenue growth 5Y9.42%
Sales Q2Q%9.96%
Revenue Next Year5.04%
Revenue Next 2Y4.45%
Revenue Next 3Y4.81%
Revenue Next 5Y4.28%
EBIT growth 1Y73.83%
EBIT growth 3Y-27.58%
EBIT growth 5Y-4.55%
EBIT Next Year82.78%
EBIT Next 3Y32.78%
EBIT Next 5Y20.79%
FCF growth 1Y300.51%
FCF growth 3Y35.85%
FCF growth 5Y37.61%
OCF growth 1Y889.18%
OCF growth 3Y24.04%
OCF growth 5Y31.78%