SUPERIOR GROUP OF COS INC (SGC) Stock Fundamental Analysis
NASDAQ:SGC - Nasdaq - US8683581024 - Common Stock - Currency: USD
Taking everything into account, SGC scores 5 out of 10 in our fundamental rating. SGC was compared to 50 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of SGC get a neutral evaluation. Nothing too spectacular is happening here. SGC is not valued too expensively and it also shows a decent growth rate. SGC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year SGC was profitable.
SGC had a positive operating cash flow in the past year.
SGC had positive earnings in 4 of the past 5 years.
Of the past 5 years SGC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SGC (3.31%) is better than 61.22% of its industry peers.
Looking at the Return On Equity, with a value of 6.75%, SGC is in line with its industry, outperforming 55.10% of the companies in the same industry.
SGC's Return On Invested Capital of 6.60% is in line compared to the rest of the industry. SGC outperforms 55.10% of its industry peers.
SGC had an Average Return On Invested Capital over the past 3 years of 6.52%. This is significantly below the industry average of 11.76%.
The last Return On Invested Capital (6.60%) for SGC is above the 3 year average (6.52%), which is a sign of increasing profitability.
| 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.
SGC has a worse Operating Margin (4.04%) than 61.22% of its industry peers.
SGC's Operating Margin has declined in the last couple of years.
The Gross Margin of SGC (39.16%) is worse than 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.
Compared to 5 years ago, SGC has more shares outstanding
Compared to 1 year ago, SGC has an improved debt to assets ratio.
2.2 Solvency
SGC has an Altman-Z score of 3.20. This indicates that SGC is financially healthy and has little risk of bankruptcy at the moment.
SGC has a Altman-Z score of 3.20. This is in the better half of the industry: SGC outperforms 63.27% of its industry peers.
The Debt to FCF ratio of SGC is 2.10, which is a good value as it means it would take SGC, 2.10 years of fcf income to pay off all of its debts.
SGC has a Debt to FCF ratio of 2.10. This is in the better half of the industry: SGC outperforms 65.31% of its industry peers.
SGC has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
SGC has a Debt to Equity ratio (0.39) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.61
WACC10.77%
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.
SGC's Current ratio of 2.86 is fine compared to the rest of the industry. SGC outperforms 75.51% of its industry peers.
A Quick Ratio of 1.87 indicates that SGC should not have too much problems paying its short term obligations.
The Quick ratio of SGC (1.87) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.86 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 207.41% over the past year.
The earnings per share for SGC have been decreasing by -12.94% on average. This is quite bad
The Revenue has been growing slightly by 4.19% in the past year.
The Revenue has been growing by 9.42% on average over the past years. This is quite good.
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
SGC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.27% yearly.
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.
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
Based on the Price/Earnings ratio of 17.41, the valuation of SGC can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as SGC.
SGC is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
SGC is valuated correctly with a Price/Forward Earnings ratio of 15.06.
Based on the Price/Forward Earnings ratio, SGC is valued a bit cheaper than the industry average as 63.27% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.70. SGC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
69.39% of the companies in the same industry are more expensive than SGC, based on the Enterprise Value to EBITDA ratio.
SGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGC is cheaper than 89.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.88 | ||
| EV/EBITDA | 8.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SGC's earnings are expected to grow with 34.33% in the coming years.
PEG (NY)0.43
PEG (5Y)N/A
EPS Next 2Y32.08%
EPS Next 3Y34.33%
5. Dividend
5.1 Amount
SGC has a Yearly Dividend Yield of 3.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.86, 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 2.27, SGC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
On average, the dividend of SGC grows each year by 7.65%, 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 their dividend for at least 10 years, which is a reliable track record.
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%
14.45
-0.24 (-1.63%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners46.44%
Inst Owner Change-85.13%
Ins Owners16.44%
Ins Owner Change5.94%
Market Cap236.11M
Analysts85.71
Price Target23.72 (64.15%)
Short Float %2.52%
Short Ratio6.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
Yearly Dividend0.56
Dividend Growth(5Y)7.65%
DP68.97%
Div Incr Years10
Div Non Decr Years11
Ex-Date
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)0%
EPS NQ rev (1m)-23.86%
EPS NQ rev (3m)-23.86%
EPS NY rev (1m)0%
EPS NY rev (3m)1.32%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.06 | ||
| P/S | 0.42 | ||
| P/FCF | 5.88 | ||
| P/OCF | 5.36 | ||
| P/B | 1.18 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 8.28 |
EPS(TTM)0.83
EY5.74%
EPS(NY)0.96
Fwd EY6.64%
FCF(TTM)2.46
FCFY17.02%
OCF(TTM)2.69
OCFY18.65%
SpS34.73
BVpS12.21
TBVpS9.27
PEG (NY)0.43
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 | 3.2 |
F-Score8
WACC10.77%
ROIC/WACC0.61
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%