SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
NYSE:SIG - New York Stock Exchange, Inc. - BMG812761002 - Common Stock - Currency: USD
Overall SIG gets a fundamental rating of 4 out of 10. We evaluated SIG against 121 industry peers in the Specialty Retail industry. Both the profitability and the financial health of SIG get a neutral evaluation. Nothing too spectacular is happening here. SIG has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
SIG had positive earnings in the past year.
SIG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SIG reported negative net income in multiple years.
SIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SIG has a Return On Assets of -0.62%. This is comparable to the rest of the industry: SIG outperforms 43.80% of its industry peers.
SIG has a Return On Equity (-1.92%) which is comparable to the rest of the industry.
SIG has a better Return On Invested Capital (10.02%) than 71.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.92% | ||
| ROIC | 10.02% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SIG has a Operating Margin of 7.37%. This is in the better half of the industry: SIG outperforms 76.03% of its industry peers.
In the last couple of years the Operating Margin of SIG has grown nicely.
Looking at the Gross Margin, with a value of 39.17%, SIG is in line with its industry, outperforming 59.50% of the companies in the same industry.
SIG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 39.17% |
OM growth 3Y-13.67%
OM growth 5Y7.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y1.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SIG is still creating some value.
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.
2.2 Solvency
An Altman-Z score of 2.92 indicates that SIG is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.92, SIG is in the better half of the industry, outperforming 70.25% of the companies in the same industry.
SIG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 2.92 |
ROIC/WACC1.07
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.48 indicates that SIG should not have too much problems paying its short term obligations.
SIG has a Current ratio (1.48) which is in line with its industry peers.
A Quick Ratio of 0.42 indicates that SIG may have some problems paying its short term obligations.
The Quick ratio of SIG (0.42) is worse than 60.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for SIG have decreased strongly by -10.49% 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 21.38% on average per year.
Looking at the last year, SIG shows a decrease in Revenue. The Revenue has decreased by -6.52% in the last year.
SIG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.
EPS 1Y (TTM)-10.49%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%-1.63%
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%-5.81%
3.2 Future
The Earnings Per Share is expected to grow by 1.70% on average over the next years.
Based on estimates for the next years, SIG will show a small growth in Revenue. The Revenue will grow by 0.68% on average per year.
EPS Next Y-4.65%
EPS Next 2Y4.54%
EPS Next 3Y1.7%
EPS Next 5YN/A
Revenue Next Year0.06%
Revenue Next 2Y0.66%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SIG is valuated cheaply with a Price/Earnings ratio of 6.01.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 94.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SIG to the average of the S&P500 Index (28.29), we can say SIG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.30, the valuation of SIG can be described as very cheap.
90.08% of the companies in the same industry are more expensive than SIG, based on the Price/Forward Earnings ratio.
SIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 6.3 |
4.2 Price Multiples
SIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIG is cheaper than 91.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 90.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.43 | ||
| EV/EBITDA | 2.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y4.54%
EPS Next 3Y1.7%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 2.22%.
Compared to an average industry Dividend Yield of 5.44, SIG pays a better dividend. On top of this SIG pays more dividend than 80.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, SIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
5.2 History
The dividend of SIG decreases each year by -3.62%.
SIG has been paying a dividend for at least 10 years, so it has a reliable track record.
SIG has decreased its dividend recently.
Dividend Growth(5Y)-3.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
SIG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-188.48%
EPS Next 2Y4.54%
EPS Next 3Y1.7%
55.38
+0.47 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners113.29%
Inst Owner Change0%
Ins Owners3.47%
Ins Owner Change-0.19%
Market Cap2.38B
Analysts76.36
Price Target78.13 (41.08%)
Short Float %11%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Yearly Dividend1.63
Dividend Growth(5Y)-3.62%
DP-188.48%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.02%
Min EPS beat(2)-24.84%
Max EPS beat(2)4.81%
EPS beat(4)3
Avg EPS beat(4)4.42%
Min EPS beat(4)-24.84%
Max EPS beat(4)29.07%
EPS beat(8)7
Avg EPS beat(8)9.73%
EPS beat(12)11
Avg EPS beat(12)19.59%
EPS beat(16)14
Avg EPS beat(16)29.17%
Revenue beat(2)0
Avg Revenue beat(2)-1.2%
Min Revenue beat(2)-2.29%
Max Revenue beat(2)-0.1%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-2.29%
Max Revenue beat(4)-0.1%
Revenue beat(8)2
Avg Revenue beat(8)-1.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.31%
Revenue beat(16)8
Avg Revenue beat(16)0.93%
PT rev (1m)-6.59%
PT rev (3m)-26.52%
EPS NQ rev (1m)2.23%
EPS NQ rev (3m)-17.36%
EPS NY rev (1m)-6.17%
EPS NY rev (3m)-18.68%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)-1.16%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-3.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.01 | ||
| Fwd PE | 6.3 | ||
| P/S | 0.35 | ||
| P/FCF | 5.43 | ||
| P/OCF | 4.02 | ||
| P/B | 1.28 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 2.76 |
EPS(TTM)9.22
EY16.65%
EPS(NY)8.79
Fwd EY15.88%
FCF(TTM)10.21
FCFY18.43%
OCF(TTM)13.77
OCFY24.87%
SpS156.27
BVpS43.17
TBVpS24.77
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.62% | ||
| ROE | -1.92% | ||
| ROCE | 12.69% | ||
| ROIC | 10.02% | ||
| ROICexc | 11.86% | ||
| ROICexgc | 15.6% | ||
| OM | 7.37% | ||
| PM (TTM) | N/A | ||
| GM | 39.17% | ||
| FCFM | 6.53% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-13.67%
OM growth 5Y7.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.63%
GM growth 5Y1.48%
F-Score5
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 103.24% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 35.81 | ||
| Cash Conversion | 91.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 2.92 |
F-Score5
WACC9.36%
ROIC/WACC1.07
Cap/Depr(3y)88.4%
Cap/Depr(5y)78.32%
Cap/Sales(3y)1.93%
Cap/Sales(5y)1.81%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.49%
EPS 3Y-6.94%
EPS 5Y21.38%
EPS Q2Q%-1.63%
EPS Next Y-4.65%
EPS Next 2Y4.54%
EPS Next 3Y1.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.52%
Revenue growth 3Y-5.03%
Revenue growth 5Y1.78%
Sales Q2Q%-5.81%
Revenue Next Year0.06%
Revenue Next 2Y0.66%
Revenue Next 3Y0.68%
Revenue Next 5YN/A
EBIT growth 1Y-20.97%
EBIT growth 3Y-18.01%
EBIT growth 5Y9.05%
EBIT Next Year33.17%
EBIT Next 3Y8.95%
EBIT Next 5YN/A
FCF growth 1Y3.92%
FCF growth 3Y-27.04%
FCF growth 5Y0.87%
OCF growth 1Y8.05%
OCF growth 3Y-22.25%
OCF growth 5Y1.24%