SIGNET JEWELERS LTD (SIG)
BMG812761002 - Common Stock
We assign a fundamental rating of 6 out of 10 to SIG. SIG was compared to 123 industry peers in the Specialty Retail industry. Both the health and profitability get an excellent rating, making SIG a very profitable company, without any liquidiy or solvency issues. SIG is valued quite cheap, but it does not seem to be growing. These ratings would make SIG suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SIG was profitable.
SIG had a positive operating cash flow in the past year.
Of the past 5 years SIG 4 years were profitable.
SIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIG has a better Return On Assets (8.53%) than 83.47% of its industry peers.
The Return On Equity of SIG (22.38%) is better than 78.51% of its industry peers.
SIG has a better Return On Invested Capital (11.43%) than 79.34% of its industry peers.
SIG had an Average Return On Invested Capital over the past 3 years of 11.82%. This is in line with the industry average of 12.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.38% | ||
| ROIC | 11.43% |
ROA(3y)9.25%
ROA(5y)5.62%
ROE(3y)25.34%
ROE(5y)15.46%
ROIC(3y)11.82%
ROIC(5y)8.87%
1.3 Margins
Looking at the Profit Margin, with a value of 6.95%, SIG belongs to the top of the industry, outperforming 84.30% of the companies in the same industry.
With an excellent Operating Margin value of 8.12%, SIG belongs to the best of the industry, outperforming 80.99% of the companies in the same industry.
In the last couple of years the Operating Margin of SIG has grown nicely.
Looking at the Gross Margin, with a value of 39.49%, SIG is in line with its industry, outperforming 58.68% of the companies in the same industry.
In the last couple of years the Gross Margin of SIG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.12% | ||
| PM (TTM) | 6.95% | ||
| GM | 39.49% |
OM growth 3Y42.65%
OM growth 5Y34.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.9%
GM growth 5Y2.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SIG is creating some value.
SIG has less shares outstanding than it did 1 year ago.
SIG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SIG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that SIG is not in any danger for bankruptcy at the moment.
SIG has a better Altman-Z score (3.43) than 73.55% of its industry peers.
There is no outstanding debt for SIG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.18
WACC9.66%
2.3 Liquidity
A Current Ratio of 1.69 indicates that SIG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, SIG is in the better half of the industry, outperforming 71.07% of the companies in the same industry.
SIG has a Quick Ratio of 1.69. This is a bad value and indicates that SIG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.39, SIG is doing worse than 65.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The earnings per share for SIG have decreased by -2.71% in the last year.
Measured over the past years, SIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.95% on average per year.
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -8.49% in the last year.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-2.71%
EPS 3Y88.41%
EPS 5Y23.95%
EPS Q2Q%-19.35%
Revenue 1Y (TTM)-8.49%
Revenue growth 3Y11.12%
Revenue growth 5Y2.8%
Sales Q2Q%-7.6%
3.2 Future
SIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.10% yearly.
SIG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.25% yearly.
EPS Next Y3.82%
EPS Next 2Y6.09%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year-5.6%
Revenue Next 2Y-1.83%
Revenue Next 3Y-0.25%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SIG is valuated reasonably with a Price/Earnings ratio of 10.74.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 88.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. SIG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 8.64, which indicates a very decent valuation of SIG.
90.08% of the companies in the same industry are more expensive than SIG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.82. SIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 8.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaply inside the industry as 87.60% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 93.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.82 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates SIG does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of SIG may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)0.45
EPS Next 2Y6.09%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
SIG's Dividend Yield is a higher than the industry average which is at 3.09.
With a Dividend Yield of 1.19, SIG pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of SIG decreases each year by -3.62%.
SIG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-3.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
15.55% of the earnings are spent on dividend by SIG. This is a low number and sustainable payout ratio.
DP15.55%
EPS Next 2Y6.09%
EPS Next 3Y10.1%
SIGNET JEWELERS LTD
NYSE:SIG (11/21/2024, 8:04:00 PM)
After market: 102.2 +2.03 (+2.03%)100.17
+3.47 (+3.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.74 | ||
| Fwd PE | 8.64 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.81
PEG (5Y)0.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 22.38% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.12% | ||
| PM (TTM) | 6.95% | ||
| GM | 39.49% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.71%
EPS 3Y88.41%
EPS 5Y
EPS Q2Q%
EPS Next Y3.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.49%
Revenue growth 3Y11.12%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y