SIGNET JEWELERS LTD (SIG) Stock Fundamental Analysis
NYSE:SIG - New York Stock Exchange, Inc. - BMG812761002 - Common Stock
We assign a fundamental rating of 6 out of 10 to SIG. SIG was compared to 119 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 could make SIG a good candidate for value investing.
1. Profitability
1.1 Basic Checks
SIG had positive earnings in the past year.
In the past year SIG had a positive cash flow from operations.
Of the past 5 years SIG 4 years were profitable.
Each year in the past 5 years SIG had a positive operating cash flow.
1.2 Ratios
SIG's Return On Assets of 8.47% is amongst the best of the industry. SIG outperforms 81.90% of its industry peers.
SIG has a Return On Equity of 26.76%. This is amongst the best in the industry. SIG outperforms 81.90% of its industry peers.
With a decent Return On Invested Capital value of 11.54%, SIG is doing good in the industry, outperforming 77.59% of the companies in the same industry.
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 12.38%.
| 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
The Profit Margin of SIG (7.03%) is better than 84.48% of its industry peers.
With an excellent Operating Margin value of 8.17%, SIG belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
SIG's Operating Margin has improved in the last couple of years.
SIG has a Gross Margin of 39.50%. This is comparable to the rest of the industry: SIG outperforms 59.48% of its industry peers.
In the last couple of years the Gross Margin of SIG has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SIG is creating some value.
The number of shares outstanding for SIG has been reduced compared to 1 year ago.
SIG has less shares outstanding than it did 5 years ago.
SIG has a better debt/assets ratio than last year.
2.2 Solvency
SIG has an Altman-Z score of 3.01. This indicates that SIG is financially healthy and has little risk of bankruptcy at the moment.
SIG has a better Altman-Z score (3.01) than 68.97% 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 better Debt to FCF ratio (0.61) than 84.48% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that SIG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, SIG is in the better half of the industry, outperforming 68.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.11
WACC10.42%
2.3 Liquidity
SIG has a Current Ratio of 1.55. This is a normal value and indicates that SIG is financially healthy and should not expect problems in meeting its short term obligations.
SIG's Current ratio of 1.55 is fine compared to the rest of the industry. SIG outperforms 62.93% of its industry peers.
A Quick Ratio of 0.25 indicates that SIG may have some problems paying its short term obligations.
With a Quick ratio value of 0.25, SIG is not doing good in the industry: 81.03% of the companies in the same industry are doing better.
| 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%.
SIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.95% yearly.
The Revenue has decreased by -6.69% in the past year.
The Revenue has been growing slightly by 2.80% on average over the past years.
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
SIG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.03% yearly.
SIG is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.75% yearly.
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.
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
A Price/Earnings ratio of 6.14 indicates a rather cheap valuation of SIG.
Compared to the rest of the industry, the Price/Earnings ratio of SIG indicates a rather cheap valuation: SIG is cheaper than 98.28% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. SIG is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 5.30, the valuation of SIG can be described as very cheap.
SIG's Price/Forward Earnings ratio is rather cheap when compared to the industry. SIG is cheaper than 97.41% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. SIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SIG is valued cheaper than 96.55% of the companies in the same industry.
SIG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SIG is cheaper than 95.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.05 | ||
| EV/EBITDA | 3.69 |
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)0.26
EPS Next 2Y2.45%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, SIG has a reasonable but not impressive dividend return.
In the last 3 months the price of SIG has falen by -37.60%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.27, SIG pays a better dividend. On top of this SIG pays more dividend than 82.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, SIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
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 pays out 15.16% of its income as dividend. This is a sustainable payout ratio.
DP15.16%
EPS Next 2Y2.45%
EPS Next 3Y7.03%
SIGNET JEWELERS LTD
NYSE:SIG (1/21/2025, 8:26:40 PM)
After market: 58.2453 +0.93 (+1.61%)57.32
-0.16 (-0.28%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.45%
Inst Owner Change0.06%
Ins Owners3.58%
Ins Owner Change-4.18%
Market Cap2.49B
Analysts76.36
Price Target106.34 (85.52%)
Short Float %11.89%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Yearly Dividend1.63
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)-5.57%
PT rev (3m)-4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.14 | ||
| Fwd PE | 5.3 | ||
| P/S | 0.36 | ||
| P/FCF | 6.05 | ||
| P/OCF | 4.43 | ||
| P/B | 1.39 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 3.69 |
EPS(TTM)9.33
EY16.28%
EPS(NY)10.81
Fwd EY18.86%
FCF(TTM)9.47
FCFY16.52%
OCF(TTM)12.93
OCFY22.56%
SpS157.48
BVpS41.37
TBVpS18.6
PEG (NY)N/A
PEG (5Y)0.26
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 | 3.01 |
F-Score6
WACC10.42%
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 Year9.08%
EBIT Next 3Y6.36%
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%