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 66 industry peers in the Household Durables industry. SGI scores excellent on profitability, but there are some minor concerns on its financial health. SGI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SGI was profitable.
In the past year SGI had a positive cash flow from operations.
Each year in the past 5 years SGI has been profitable.
Each year in the past 5 years SGI had a positive operating cash flow.
1.2 Ratios
SGI's Return On Assets of 8.53% is fine compared to the rest of the industry. SGI outperforms 65.15% of its industry peers.
SGI's Return On Equity of 69.00% is amongst the best of the industry. SGI outperforms 98.48% of its industry peers.
The Return On Invested Capital of SGI (13.89%) is better than 78.79% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SGI is above the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROIC | 13.89% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
1.3 Margins
The Profit Margin of SGI (7.96%) is better than 65.15% of its industry peers.
SGI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.81%, SGI is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of SGI has grown nicely.
With an excellent Gross Margin value of 44.51%, SGI belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
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 | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% |
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
SGI has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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.
SGI has a better debt/assets ratio than last year.
2.2 Solvency
SGI has an Altman-Z score of 4.58. This indicates that SGI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.58, SGI is in the better half of the industry, outperforming 74.24% of the companies in the same industry.
SGI has a debt to FCF ratio of 4.37. This is a neutral value as SGI would need 4.37 years to pay back of all of its debts.
SGI has a better Debt to FCF ratio (4.37) than 62.12% of its industry peers.
A Debt/Equity ratio of 3.95 is on the high side and indicates that SGI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 3.95, SGI is doing worse than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.58 |
ROIC/WACC1.58
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.14 indicates that SGI should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, SGI is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
SGI has a Quick Ratio of 1.14. This is a bad value and indicates that SGI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.65, SGI is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
SGI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.95%.
The Earnings Per Share has been growing by 27.51% on average over the past years. This is a very strong growth
SGI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
Measured over the past years, SGI shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
EPS 1Y (TTM)-6.95%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%N/A
Revenue 1Y (TTM)0.09%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%3.2%
3.2 Future
The Earnings Per Share is expected to grow by 10.18% on average over the next years. This is quite good.
SGI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
Revenue Next 5Y3.48%
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.
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
The Price/Earnings ratio is 25.80, which means the current valuation is very expensive for SGI.
Compared to the rest of the industry, the Price/Earnings ratio of SGI is on the same level as its industry peers.
SGI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.71.
With a Price/Forward Earnings ratio of 21.46, SGI is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGI indicates a slightly more expensive valuation: SGI is more expensive than 66.67% of the companies listed in the same industry.
SGI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SGI indicates a slightly more expensive valuation: SGI is more expensive than 62.12% of the companies listed in the same industry.
SGI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.86 | ||
| EV/EBITDA | 19.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of SGI may justify a higher PE ratio.
PEG (NY)4.67
PEG (5Y)0.94
EPS Next 2Y9.65%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
SGI has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 3.10, SGI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, SGI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of SGI grows each year by 43.15%, which is quite nice.
SGI has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)43.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
22.85% of the earnings are spent on dividend by SGI. This is a low number and sustainable payout ratio.
The dividend of SGI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.85%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
62.19
+0.4 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.34%
Inst Owner ChangeN/A
Ins Owners2.78%
Ins Owner Change0%
Market Cap12.93B
Analysts78.57
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.45
Dividend Growth(5Y)43.15%
DP22.85%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.83%
Min EPS beat(2)-2.2%
Max EPS beat(2)0.54%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.54%
Max EPS beat(4)2.49%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)7
Avg EPS beat(12)0.28%
EPS beat(16)11
Avg EPS beat(16)5.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-4.45%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)-0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.99%
Revenue beat(12)2
Avg Revenue beat(12)-2.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.8 | ||
| Fwd PE | 21.46 | ||
| P/S | 2.64 | ||
| P/FCF | 24.86 | ||
| P/OCF | 20.57 | ||
| P/B | 22.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.24 |
EPS(TTM)2.41
EY3.88%
EPS(NY)2.9
Fwd EY4.66%
FCF(TTM)2.5
FCFY4.02%
OCF(TTM)3.02
OCFY4.86%
SpS23.54
BVpS2.72
TBVpS-6
PEG (NY)4.67
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROCE | 17.63% | ||
| ROIC | 13.89% | ||
| ROICexc | 14.31% | ||
| ROICexgc | 30.12% | ||
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% | ||
| FCFM | 10.63% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
ROICexc(3y)17.49%
ROICexc(5y)16.63%
ROICexgc(3y)41.15%
ROICexgc(5y)40.69%
ROCE(3y)21.04%
ROCE(5y)20.19%
ROICexcg growth 3Y-17.23%
ROICexcg growth 5Y-4.88%
ROICexc growth 3Y-9.87%
ROICexc growth 5Y4.24%
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 68.85% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 133.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.58 |
F-Score6
WACC8.8%
ROIC/WACC1.58
Cap/Depr(3y)162.37%
Cap/Depr(5y)139.8%
Cap/Sales(3y)4.16%
Cap/Sales(5y)3.67%
Profit Quality(3y)72.09%
Profit Quality(5y)98.13%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.95%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%N/A
EPS Next Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%3.2%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
Revenue Next 5Y3.48%
EBIT growth 1Y0.82%
EBIT growth 3Y4.84%
EBIT growth 5Y17.05%
EBIT Next Year30.06%
EBIT Next 3Y15%
EBIT Next 5Y11.43%
FCF growth 1Y244.37%
FCF growth 3Y-10.88%
FCF growth 5Y28.58%
OCF growth 1Y53.97%
OCF growth 3Y-4.51%
OCF growth 5Y25.51%