SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
NYSE:SGI - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
Overall SGI gets a fundamental rating of 5 out of 10. We evaluated SGI against 63 industry peers in the Household Durables industry. While SGI has a great profitability rating, there are quite some concerns on its financial health. SGI is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
SGI had positive earnings in the past year.
In the past year SGI had a positive cash flow from operations.
In the past 5 years SGI has always been profitable.
SGI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SGI has a Return On Assets (2.43%) which is in line with its industry peers.
SGI has a Return On Equity of 10.03%. This is comparable to the rest of the industry: SGI outperforms 52.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.85%, SGI is in line with its industry, outperforming 44.44% of the companies in the same industry.
SGI had an Average Return On Invested Capital over the past 3 years of 12.53%. This is above the industry average of 10.51%.
The 3 year average ROIC (12.53%) for SGI is well above the current ROIC(4.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 10.03% | ||
| ROIC | 4.85% |
ROA(3y)8.32%
ROA(5y)9.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.53%
ROIC(5y)15.1%
1.3 Margins
SGI has a Profit Margin (5.14%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SGI has grown nicely.
With a decent Operating Margin value of 11.30%, SGI is doing good in the industry, outperforming 71.43% of the companies in the same industry.
SGI's Operating Margin has improved in the last couple of years.
The Gross Margin of SGI (44.05%) is better than 82.54% of its industry peers.
In the last couple of years the Gross Margin of SGI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.3% | ||
| PM (TTM) | 5.14% | ||
| GM | 44.05% |
OM growth 3Y-10.85%
OM growth 5Y1.76%
PM growth 3Y-14.94%
PM growth 5Y5.02%
GM growth 3Y0.47%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SGI is still creating some value.
The number of shares outstanding for SGI has been increased compared to 1 year ago.
The number of shares outstanding for SGI has been reduced compared to 5 years ago.
Compared to 1 year ago, SGI has a worse debt to assets ratio.
2.2 Solvency
SGI has an Altman-Z score of 2.08. This is not the best score and indicates that SGI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of SGI (2.08) is worse than 65.08% of its industry peers.
The Debt to FCF ratio of SGI is 9.10, which is on the high side as it means it would take SGI, 9.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.10, SGI is in line with its industry, outperforming 53.97% of the companies in the same industry.
A Debt/Equity ratio of 1.79 is on the high side and indicates that SGI has dependencies on debt financing.
SGI has a worse Debt to Equity ratio (1.79) than 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.1 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.57
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.84 indicates that SGI may have some problems paying its short term obligations.
With a Current ratio value of 0.84, SGI is not doing good in the industry: 92.06% of the companies in the same industry are doing better.
A Quick Ratio of 0.44 indicates that SGI may have some problems paying its short term obligations.
SGI has a worse Quick ratio (0.44) than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.72% over the past year.
The Earnings Per Share has been growing by 20.59% on average over the past years. This is a very strong growth
SGI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.96%.
SGI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.68% yearly.
EPS 1Y (TTM)6.72%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-2%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%34.92%
3.2 Future
The Earnings Per Share is expected to grow by 14.46% on average over the next years. This is quite good.
SGI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.72% yearly.
EPS Next Y-1.55%
EPS Next 2Y10.13%
EPS Next 3Y13.12%
EPS Next 5Y14.46%
Revenue Next Year51.01%
Revenue Next 2Y26.61%
Revenue Next 3Y18.65%
Revenue Next 5Y12.72%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.66 indicates a quite expensive valuation of SGI.
65.08% of the companies in the same industry are cheaper than SGI, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SGI is valued at the same level.
A Price/Forward Earnings ratio of 22.72 indicates a rather expensive valuation of SGI.
68.25% of the companies in the same industry are cheaper than SGI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SGI to the average of the S&P500 Index (35.33), we can say SGI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 22.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGI is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as SGI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.51 | ||
| EV/EBITDA | 24.86 |
4.3 Compensation for Growth
The decent profitability rating of SGI may justify a higher PE ratio.
SGI's earnings are expected to grow with 13.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.34
EPS Next 2Y10.13%
EPS Next 3Y13.12%
5. Dividend
5.1 Amount
SGI has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.25, SGI pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.82, SGI pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
On average, the dividend of SGI grows each year by 55.01%, which is quite nice.
SGI has been paying a dividend for over 5 years, so it has already some track record.
SGI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)55.01%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
36.63% of the earnings are spent on dividend by SGI. This is a low number and sustainable payout ratio.
SGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.63%
EPS Next 2Y10.13%
EPS Next 3Y13.12%
70.26
-1.71 (-2.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners105.29%
Inst Owner ChangeN/A
Ins Owners3.01%
Ins Owner Change17.6%
Market Cap14.65B
Analysts80
Price Target71.4 (1.62%)
Short Float %8.8%
Short Ratio5.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP36.63%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.59%
Min EPS beat(2)4.03%
Max EPS beat(2)5.14%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.2%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)0.34%
EPS beat(12)8
Avg EPS beat(12)0.69%
EPS beat(16)11
Avg EPS beat(16)3.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.76%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)1.16%
Revenue beat(8)2
Avg Revenue beat(8)-1.53%
Revenue beat(12)2
Avg Revenue beat(12)-2.04%
Revenue beat(16)5
Avg Revenue beat(16)-1.75%
PT rev (1m)0.8%
PT rev (3m)-2.91%
EPS NQ rev (1m)0.41%
EPS NQ rev (3m)-24.37%
EPS NY rev (1m)0.51%
EPS NY rev (3m)-10.91%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-4.79%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-3.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.66 | ||
| Fwd PE | 22.72 | ||
| P/S | 2.74 | ||
| P/FCF | 26.51 | ||
| P/OCF | 22.8 | ||
| P/B | 5.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.86 |
EPS(TTM)2.54
EY3.62%
EPS(NY)3.09
Fwd EY4.4%
FCF(TTM)2.65
FCFY3.77%
OCF(TTM)3.08
OCFY4.39%
SpS25.63
BVpS13.14
TBVpS-20
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.43% | ||
| ROE | 10.03% | ||
| ROCE | 6.27% | ||
| ROIC | 4.85% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 17.88% | ||
| OM | 11.3% | ||
| PM (TTM) | 5.14% | ||
| GM | 44.05% | ||
| FCFM | 10.34% |
ROA(3y)8.32%
ROA(5y)9.99%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)12.53%
ROIC(5y)15.1%
ROICexc(3y)12.8%
ROICexc(5y)15.79%
ROICexgc(3y)25.07%
ROICexgc(5y)36.46%
ROCE(3y)16.2%
ROCE(5y)19.53%
ROICexcg growth 3Y-36.91%
ROICexcg growth 5Y-14.03%
ROICexc growth 3Y-24.57%
ROICexc growth 5Y-4.71%
OM growth 3Y-10.85%
OM growth 5Y1.76%
PM growth 3Y-14.94%
PM growth 5Y5.02%
GM growth 3Y0.47%
GM growth 5Y0.55%
F-Score6
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.79 | ||
| Debt/FCF | 9.1 | ||
| Debt/EBITDA | 6.25 | ||
| Cap/Depr | 48.91% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 3.19 | ||
| Cash Conversion | 81.61% | ||
| Profit Quality | 201.13% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.08 |
F-Score6
WACC8.51%
ROIC/WACC0.57
Cap/Depr(3y)145.7%
Cap/Depr(5y)131.92%
Cap/Sales(3y)3.99%
Cap/Sales(5y)3.5%
Profit Quality(3y)89.49%
Profit Quality(5y)104.05%
High Growth Momentum
Growth
EPS 1Y (TTM)6.72%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-2%
EPS Next Y-1.55%
EPS Next 2Y10.13%
EPS Next 3Y13.12%
EPS Next 5Y14.46%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%34.92%
Revenue Next Year51.01%
Revenue Next 2Y26.61%
Revenue Next 3Y18.65%
Revenue Next 5Y12.72%
EBIT growth 1Y1.96%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year74.86%
EBIT Next 3Y29.53%
EBIT Next 5Y20.35%
FCF growth 1Y485.7%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y63.66%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%