SIGNET JEWELERS LTD (SIG)
BMG812761002 - Common Stock
SIG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 122 industry peers in the Specialty Retail industry. SIG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. SIG is valued quite cheap, but it does not seem to be growing. With these ratings, SIG could be worth investigating further for value investing!.
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.
SIG had positive earnings in 4 of the past 5 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 8.47%. This is amongst the best in the industry. SIG outperforms 82.64% of its industry peers.
SIG's Return On Equity of 26.76% is amongst the best of the industry. SIG outperforms 82.64% of its industry peers.
With a decent Return On Invested Capital value of 11.54%, SIG is doing good in the industry, outperforming 78.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SIG is in line with the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 26.76% | ||
| ROIC | 11.54% |
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
SIG has a better Profit Margin (7.03%) than 85.12% of its industry peers.
SIG has a better Operating Margin (8.17%) than 81.82% of its industry peers.
SIG's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 39.50%, SIG is in line with its industry, outperforming 58.68% of the companies in the same industry.
SIG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.17% | ||
| PM (TTM) | 7.03% | ||
| GM | 39.5% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SIG is still creating some value.
Compared to 1 year ago, SIG has less shares outstanding
The number of shares outstanding for SIG has been reduced compared to 5 years ago.
The debt/assets ratio for SIG has been reduced compared to a year ago.
2.2 Solvency
SIG has an Altman-Z score of 3.17. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG's Altman-Z score of 3.17 is fine compared to the rest of the industry. SIG outperforms 70.25% of its industry peers.
The Debt to FCF ratio of SIG is 0.61, which is an excellent value as it means it would take SIG, only 0.61 years of fcf income to pay off all of its debts.
SIG has a Debt to FCF ratio of 0.61. This is amongst the best in the industry. SIG outperforms 84.30% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SIG is not too dependend on debt financing.
SIG's Debt to Equity ratio of 0.14 is fine compared to the rest of the industry. SIG outperforms 67.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.11
WACC10.39%
2.3 Liquidity
A Current Ratio of 1.55 indicates that SIG should not have too much problems paying its short term obligations.
The Current ratio of SIG (1.55) is better than 62.81% of its industry peers.
SIG has a Quick Ratio of 1.55. This is a bad value and indicates that SIG is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SIG (0.25) is worse than 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
SIG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.64%.
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.
The Revenue has decreased by -6.69% in the past year.
Measured over the past years, SIG shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)2.64%
EPS 3Y88.41%
EPS 5Y23.95%
EPS Q2Q%0%
Revenue 1Y (TTM)-6.69%
Revenue growth 3Y11.12%
Revenue growth 5Y2.8%
Sales Q2Q%-3.05%
3.2 Future
Based on estimates for the next years, SIG will show a small growth in Earnings Per Share. The EPS will grow by 7.03% on average per year.
Based on estimates for the next years, SIG will show a decrease in Revenue. The Revenue will decrease by -0.75% on average per year.
EPS Next Y-3.76%
EPS Next 2Y2.45%
EPS Next 3Y7.03%
EPS Next 5YN/A
Revenue Next Year-6.21%
Revenue Next 2Y-2.09%
Revenue Next 3Y-0.75%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 8.70, the valuation of SIG can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 92.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. SIG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.50, the valuation of SIG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 91.74% of the companies listed in the same industry.
SIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
SIG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SIG is cheaper than 89.26% of the companies in the same industry.
90.91% of the companies in the same industry are more expensive than SIG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.57 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
SIG has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y2.45%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
SIG has a Yearly Dividend Yield of 1.46%.
Compared to an average industry Dividend Yield of 3.43, SIG pays a bit more dividend than its industry peers.
SIG's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
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.
SIG has decreased its dividend recently.
Dividend Growth(5Y)-3.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
15.16% of the earnings are spent on dividend by SIG. This is a low number and sustainable payout ratio.
DP15.16%
EPS Next 2Y2.45%
EPS Next 3Y7.03%
SIGNET JEWELERS LTD
NYSE:SIG (12/20/2024, 8:04:00 PM)
After market: 81.14 0 (0%)81.14
+1.66 (+2.09%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.45%
Inst Owner Change-1.52%
Ins Owners3.58%
Ins Owner Change-4.26%
Market Cap3.53B
Analysts74.55
Price Target112.61 (38.78%)
Short Float %12%
Short Ratio5.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Dividend Growth(5Y)-3.62%
DP15.16%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.87%
Min EPS beat(2)-22.39%
Max EPS beat(2)8.64%
EPS beat(4)3
Avg EPS beat(4)4.98%
Min EPS beat(4)-22.39%
Max EPS beat(4)29.07%
EPS beat(8)7
Avg EPS beat(8)9.53%
EPS beat(12)10
Avg EPS beat(12)19.31%
EPS beat(16)14
Avg EPS beat(16)30.03%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-1.71%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-2.93%
Max Revenue beat(4)-1.19%
Revenue beat(8)2
Avg Revenue beat(8)-1.1%
Revenue beat(12)5
Avg Revenue beat(12)-0.3%
Revenue beat(16)9
Avg Revenue beat(16)1.11%
PT rev (1m)0.91%
PT rev (3m)-8.31%
EPS NQ rev (1m)2.71%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)-7.3%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.52 | ||
| P/FCF | 8.57 | ||
| P/OCF | 6.27 | ||
| P/B | 1.96 | ||
| P/tB | 4.36 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)9.33
EY11.5%
EPS(NY)10.81
Fwd EY13.32%
FCF(TTM)9.47
FCFY11.67%
OCF(TTM)12.93
OCFY15.94%
SpS157.48
BVpS41.37
TBVpS18.6
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.47% | ||
| ROE | 26.76% | ||
| ROCE | 13.82% | ||
| ROIC | 11.54% | ||
| ROICexc | 12% | ||
| ROICexgc | 16.1% | ||
| OM | 8.17% | ||
| PM (TTM) | 7.03% | ||
| GM | 39.5% | ||
| FCFM | 6.01% |
ROA(3y)9.25%
ROA(5y)5.62%
ROE(3y)25.34%
ROE(5y)15.46%
ROIC(3y)11.82%
ROIC(5y)8.87%
ROICexc(3y)16.78%
ROICexc(5y)12.19%
ROICexgc(3y)24.21%
ROICexgc(5y)16.95%
ROCE(3y)14.16%
ROCE(5y)10.62%
ROICexcg growth 3Y64.89%
ROICexcg growth 5Y42.25%
ROICexc growth 3Y51.29%
ROICexc growth 5Y36.3%
OM growth 3Y42.65%
OM growth 5Y34.76%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.9%
GM growth 5Y2.06%
F-Score6
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 105.17% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.01% | ||
| Profit Quality | 85.56% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 3.17 |
F-Score6
WACC10.39%
ROIC/WACC1.11
Cap/Depr(3y)80.41%
Cap/Depr(5y)72.99%
Cap/Sales(3y)1.73%
Cap/Sales(5y)1.8%
Profit Quality(3y)133.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.64%
EPS 3Y88.41%
EPS 5Y23.95%
EPS Q2Q%0%
EPS Next Y-3.76%
EPS Next 2Y2.45%
EPS Next 3Y7.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.69%
Revenue growth 3Y11.12%
Revenue growth 5Y2.8%
Sales Q2Q%-3.05%
Revenue Next Year-6.21%
Revenue Next 2Y-2.09%
Revenue Next 3Y-0.75%
Revenue Next 5YN/A
EBIT growth 1Y176.72%
EBIT growth 3Y58.5%
EBIT growth 5Y38.52%
EBIT Next Year16.59%
EBIT Next 3Y7.93%
EBIT Next 5YN/A
FCF growth 1Y-7.33%
FCF growth 3Y-31.12%
FCF growth 5Y-5.67%
OCF growth 1Y-8.98%
OCF growth 3Y-26.41%
OCF growth 5Y-4.75%