SOMNIGROUP INTERNATIONAL INC (SGI) Stock Fundamental Analysis
USA - NYSE:SGI - US88023U1016 - Common Stock
84.08 USD
-2.01 (-2.33%)
84.08 USD
0 (0%)
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
In the past year SGI was profitable.
SGI had a positive operating cash flow in the past year.
In the past 5 years SGI has always been profitable.
In the past 5 years SGI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.35%, SGI is in line with its industry, outperforming 41.27% of the companies in the same industry.
SGI's Return On Equity of 9.43% is in line compared to the rest of the industry. SGI outperforms 50.79% of its industry peers.
The Return On Invested Capital of SGI (4.99%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SGI is above the industry average of 10.51%.
The 3 year average ROIC (12.53%) for SGI is well above the current ROIC(4.99%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 9.43% | ||
| ROIC | 4.99% |
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
Looking at the Profit Margin, with a value of 4.47%, SGI is in line with its industry, outperforming 53.97% of the companies in the same industry.
SGI's Profit Margin has improved in the last couple of years.
SGI's Operating Margin of 10.43% is fine compared to the rest of the industry. SGI outperforms 61.90% of its industry peers.
In the last couple of years the Operating Margin of SGI has grown nicely.
SGI has a Gross Margin of 43.86%. This is amongst the best in the industry. SGI outperforms 84.13% of its industry peers.
SGI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.43% | ||
| PM (TTM) | 4.47% | ||
| GM | 43.86% |
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.
Compared to 1 year ago, SGI has more shares outstanding
SGI has less shares outstanding than it did 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 2.39. 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.
SGI has a Altman-Z score of 2.39. This is comparable to the rest of the industry: SGI outperforms 41.27% of its industry peers.
SGI has a debt to FCF ratio of 8.47. This is a slightly negative value and a sign of low solvency as SGI would need 8.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.47, SGI is in line with its industry, outperforming 55.56% of the companies in the same industry.
A Debt/Equity ratio of 1.69 is on the high side and indicates that SGI has dependencies on debt financing.
SGI has a Debt to Equity ratio of 1.69. This is amonst the worse of the industry: SGI underperforms 90.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 8.47 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.58
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.82 indicates that SGI may have some problems paying its short term obligations.
SGI has a Current ratio of 0.82. This is amonst the worse of the industry: SGI underperforms 93.65% of its industry peers.
A Quick Ratio of 0.40 indicates that SGI may have some problems paying its short term obligations.
SGI has a Quick ratio of 0.40. This is amonst the worse of the industry: SGI underperforms 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
SGI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.41%.
Measured over the past years, SGI shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.59% on average per year.
Looking at the last year, SGI shows a very strong growth in Revenue. The Revenue has grown by 23.05%.
The Revenue has been growing by 9.68% on average over the past years. This is quite good.
EPS 1Y (TTM)0.41%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-15.87%
Revenue 1Y (TTM)23.05%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%52.46%
3.2 Future
SGI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.23% yearly.
Based on estimates for the next years, SGI will show a quite strong growth in Revenue. The Revenue will grow by 12.14% on average per year.
EPS Next Y1.04%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
EPS Next 5Y15.23%
Revenue Next Year51.66%
Revenue Next 2Y26.63%
Revenue Next 3Y18.99%
Revenue Next 5Y12.14%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.46 indicates a quite expensive valuation of SGI.
Based on the Price/Earnings ratio, SGI is valued a bit more expensive than 69.84% of the companies in the same industry.
SGI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 26.43, which means the current valuation is very expensive for SGI.
Based on the Price/Forward Earnings ratio, SGI is valued a bit more expensive than 68.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. SGI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 26.43 |
4.2 Price Multiples
SGI's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. SGI is more expensive than 71.43% of the companies in the same industry.
SGI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.42 | ||
| EV/EBITDA | 27.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SGI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SGI may justify a higher PE ratio.
A more expensive valuation may be justified as SGI's earnings are expected to grow with 14.04% in the coming years.
PEG (NY)33.01
PEG (5Y)1.67
EPS Next 2Y11.7%
EPS Next 3Y14.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, SGI is not a good candidate for dividend investing.
SGI's Dividend Yield is a higher than the industry average which is at 2.71.
Compared to an average S&P500 Dividend Yield of 2.45, SGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of SGI is nicely growing with an annual growth rate of 55.01%!
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
SGI pays out 40.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
SGI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.93%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
84.08
-2.01 (-2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners106.56%
Inst Owner ChangeN/A
Ins Owners3.01%
Ins Owner Change14.41%
Market Cap17.65B
Analysts80
Price Target84.66 (0.69%)
Short Float %5.34%
Short Ratio3.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.54
Dividend Growth(5Y)55.01%
DP40.93%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.12%
Max EPS beat(2)4.03%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.54%
Max EPS beat(4)5.14%
EPS beat(8)5
Avg EPS beat(8)0.45%
EPS beat(12)9
Avg EPS beat(12)1.2%
EPS beat(16)11
Avg EPS beat(16)1.17%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.69%
Max Revenue beat(2)-1.58%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.69%
Max Revenue beat(4)1.16%
Revenue beat(8)1
Avg Revenue beat(8)-1.89%
Revenue beat(12)2
Avg Revenue beat(12)-1.7%
Revenue beat(16)4
Avg Revenue beat(16)-1.92%
PT rev (1m)15.08%
PT rev (3m)19.52%
EPS NQ rev (1m)-5.07%
EPS NQ rev (3m)-9.66%
EPS NY rev (1m)2.64%
EPS NY rev (3m)3.16%
Revenue NQ rev (1m)0.93%
Revenue NQ rev (3m)-3.54%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.46 | ||
| Fwd PE | 26.43 | ||
| P/S | 2.94 | ||
| P/FCF | 30.42 | ||
| P/OCF | 26.02 | ||
| P/B | 6.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.68 |
EPS(TTM)2.44
EY2.9%
EPS(NY)3.18
Fwd EY3.78%
FCF(TTM)2.76
FCFY3.29%
OCF(TTM)3.23
OCFY3.84%
SpS28.55
BVpS13.54
TBVpS-19.62
PEG (NY)33.01
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 9.43% | ||
| ROCE | 6.45% | ||
| ROIC | 4.99% | ||
| ROICexc | 5.04% | ||
| ROICexgc | 18.33% | ||
| OM | 10.43% | ||
| PM (TTM) | 4.47% | ||
| GM | 43.86% | ||
| FCFM | 9.68% |
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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.69 | ||
| Debt/FCF | 8.47 | ||
| Debt/EBITDA | 5.81 | ||
| Cap/Depr | 48.61% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 2.75 | ||
| Cash Conversion | 82.03% | ||
| Profit Quality | 216.65% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.39 |
F-Score5
WACC8.58%
ROIC/WACC0.58
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)0.41%
EPS 3Y-7.19%
EPS 5Y20.59%
EPS Q2Q%-15.87%
EPS Next Y1.04%
EPS Next 2Y11.7%
EPS Next 3Y14.04%
EPS Next 5Y15.23%
Revenue 1Y (TTM)23.05%
Revenue growth 3Y0%
Revenue growth 5Y9.68%
Sales Q2Q%52.46%
Revenue Next Year51.66%
Revenue Next 2Y26.63%
Revenue Next 3Y18.99%
Revenue Next 5Y12.14%
EBIT growth 1Y2.85%
EBIT growth 3Y-10.85%
EBIT growth 5Y11.62%
EBIT Next Year75.41%
EBIT Next 3Y30.02%
EBIT Next 5Y21.05%
FCF growth 1Y112.14%
FCF growth 3Y-1.68%
FCF growth 5Y20.44%
OCF growth 1Y20.57%
OCF growth 3Y-2.64%
OCF growth 5Y16.33%