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SLEEP NUMBER CORP (SNBR) Stock Fundamental Analysis

NASDAQ:SNBR - Nasdaq - US83125X1037 - Common Stock

17.57  -0.34 (-1.9%)

Fundamental Rating

2

SNBR gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 119 industry peers in the Specialty Retail industry. SNBR has a medium profitability rating, but doesn't score so well on its financial health evaluation. SNBR does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SNBR had negative earnings in the past year.
SNBR had a positive operating cash flow in the past year.
SNBR had positive earnings in 4 of the past 5 years.
Of the past 5 years SNBR 4 years had a positive operating cash flow.
SNBR Yearly Net Income VS EBIT VS OCF VS FCFSNBR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M 200M

1.2 Ratios

SNBR has a Return On Assets of -4.73%. This is in the lower half of the industry: SNBR underperforms 66.38% of its industry peers.
SNBR has a Return On Invested Capital (4.70%) which is comparable to the rest of the industry.
SNBR had an Average Return On Invested Capital over the past 3 years of 17.46%. This is significantly above the industry average of 12.38%.
The last Return On Invested Capital (4.70%) for SNBR is well below the 3 year average (17.46%), which needs to be investigated, but indicates that SNBR had better years and this may not be a problem.
Industry RankSector Rank
ROA -4.73%
ROE N/A
ROIC 4.7%
ROA(3y)6.31%
ROA(5y)9.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.46%
ROIC(5y)21.4%
SNBR Yearly ROA, ROE, ROICSNBR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 -60

1.3 Margins

SNBR's Operating Margin of 1.76% is in line compared to the rest of the industry. SNBR outperforms 47.41% of its industry peers.
In the last couple of years the Operating Margin of SNBR has declined.
SNBR has a Gross Margin of 58.80%. This is amongst the best in the industry. SNBR outperforms 87.93% of its industry peers.
In the last couple of years the Gross Margin of SNBR has remained more or less at the same level.
Industry RankSector Rank
OM 1.76%
PM (TTM) N/A
GM 58.8%
OM growth 3Y-40.97%
OM growth 5Y-19.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.52%
GM growth 5Y-0.98%
SNBR Yearly Profit, Operating, Gross MarginsSNBR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60

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1

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SNBR is creating some value.
Compared to 1 year ago, SNBR has more shares outstanding
SNBR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SNBR is higher compared to a year ago.
SNBR Yearly Shares OutstandingSNBR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
SNBR Yearly Total Debt VS Total AssetsSNBR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of 0.53, we must say that SNBR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SNBR (0.53) is worse than 78.45% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z 0.53
ROIC/WACC0.46
WACC10.26%
SNBR Yearly LT Debt VS Equity VS FCFSNBR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M -400M

2.3 Liquidity

A Current Ratio of 0.19 indicates that SNBR may have some problems paying its short term obligations.
The Current ratio of SNBR (0.19) is worse than 99.14% of its industry peers.
SNBR has a Quick Ratio of 0.19. This is a bad value and indicates that SNBR is not financially healthy enough and could expect problems in meeting its short term obligations.
SNBR's Quick ratio of 0.09 is on the low side compared to the rest of the industry. SNBR is outperformed by 97.41% of its industry peers.
Industry RankSector Rank
Current Ratio 0.19
Quick Ratio 0.09
SNBR Yearly Current Assets VS Current LiabilitesSNBR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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2

3. Growth

3.1 Past

The earnings per share for SNBR have decreased strongly by -1005.00% in the last year.
SNBR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.27%.
SNBR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
EPS 1Y (TTM)-1005%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
Revenue 1Y (TTM)-11.27%
Revenue growth 3Y0.55%
Revenue growth 5Y4.27%
Sales Q2Q%-9.74%

3.2 Future

Based on estimates for the next years, SNBR will show a very strong growth in Earnings Per Share. The EPS will grow by 35.13% on average per year.
The Revenue is expected to decrease by -0.47% on average over the next years.
EPS Next Y-36.5%
EPS Next 2Y59.66%
EPS Next 3Y50.74%
EPS Next 5Y35.13%
Revenue Next Year-9.76%
Revenue Next 2Y-4.21%
Revenue Next 3Y-1.84%
Revenue Next 5Y-0.47%

3.3 Evolution

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.
SNBR Yearly Revenue VS EstimatesSNBR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B
SNBR Yearly EPS VS EstimatesSNBR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

SNBR reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
SNBR is valuated quite expensively with a Price/Forward Earnings ratio of 47.06.
Based on the Price/Forward Earnings ratio, SNBR is valued a bit more expensive than 60.34% of the companies in the same industry.
SNBR is valuated expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 47.06
SNBR Price Earnings VS Forward Price EarningsSNBR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 200 300

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SNBR indicates a rather cheap valuation: SNBR is cheaper than 96.55% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 4
SNBR Per share dataSNBR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 -20 40 60

4.3 Compensation for Growth

A more expensive valuation may be justified as SNBR's earnings are expected to grow with 50.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y59.66%
EPS Next 3Y50.74%

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0

5. Dividend

5.1 Amount

SNBR does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SLEEP NUMBER CORP

NASDAQ:SNBR (1/22/2025, 10:45:19 AM)

17.57

-0.34 (-1.9%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners87.93%
Inst Owner Change0.13%
Ins Owners5.75%
Ins Owner Change2.5%
Market Cap393.04M
Analysts50
Price Target12.75 (-27.43%)
Short Float %14.66%
Short Ratio7.33
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.85%
Min EPS beat(2)18.3%
Max EPS beat(2)41.39%
EPS beat(4)2
Avg EPS beat(4)-2.78%
Min EPS beat(4)-45.73%
Max EPS beat(4)41.39%
EPS beat(8)4
Avg EPS beat(8)24.74%
EPS beat(12)6
Avg EPS beat(12)39.23%
EPS beat(16)9
Avg EPS beat(16)36.26%
Revenue beat(2)0
Avg Revenue beat(2)-4.87%
Min Revenue beat(2)-6.21%
Max Revenue beat(2)-3.53%
Revenue beat(4)1
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-6.21%
Max Revenue beat(4)0.08%
Revenue beat(8)1
Avg Revenue beat(8)-3.9%
Revenue beat(12)3
Avg Revenue beat(12)-3.98%
Revenue beat(16)5
Avg Revenue beat(16)-2.93%
PT rev (1m)0%
PT rev (3m)-8.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-334.61%
EPS NY rev (1m)0%
EPS NY rev (3m)-30.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.46%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 47.06
P/S 0.23
P/FCF N/A
P/OCF 39.32
P/B N/A
P/tB N/A
EV/EBITDA 4
EPS(TTM)-1.81
EYN/A
EPS(NY)0.37
Fwd EY2.12%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.45
OCFY2.54%
SpS77.56
BVpS-20.06
TBVpS-23.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -4.73%
ROE N/A
ROCE -104.11%
ROIC 4.7%
ROICexc 4.72%
ROICexgc 5.47%
OM 1.76%
PM (TTM) N/A
GM 58.8%
FCFM N/A
ROA(3y)6.31%
ROA(5y)9.3%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.46%
ROIC(5y)21.4%
ROICexc(3y)17.55%
ROICexc(5y)21.55%
ROICexgc(3y)21.06%
ROICexgc(5y)26.1%
ROCE(3y)688.83%
ROCE(5y)449.56%
ROICexcg growth 3Y-48.8%
ROICexcg growth 5Y-38.26%
ROICexc growth 3Y-47.39%
ROICexc growth 5Y-32.9%
OM growth 3Y-40.97%
OM growth 5Y-19.43%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.52%
GM growth 5Y-0.98%
F-Score5
Asset Turnover2.01
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 5.17
Cap/Depr 37.96%
Cap/Sales 1.51%
Interest Coverage 250
Cash Conversion 10.01%
Profit Quality N/A
Current Ratio 0.19
Quick Ratio 0.09
Altman-Z 0.53
F-Score5
WACC10.26%
ROIC/WACC0.46
Cap/Depr(3y)96.98%
Cap/Depr(5y)90.01%
Cap/Sales(3y)3.12%
Cap/Sales(5y)2.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1005%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-40%
EPS Next Y-36.5%
EPS Next 2Y59.66%
EPS Next 3Y50.74%
EPS Next 5Y35.13%
Revenue 1Y (TTM)-11.27%
Revenue growth 3Y0.55%
Revenue growth 5Y4.27%
Sales Q2Q%-9.74%
Revenue Next Year-9.76%
Revenue Next 2Y-4.21%
Revenue Next 3Y-1.84%
Revenue Next 5Y-0.47%
EBIT growth 1Y-29.49%
EBIT growth 3Y-40.64%
EBIT growth 5Y-15.99%
EBIT Next Year273.92%
EBIT Next 3Y67.62%
EBIT Next 5Y38.42%
FCF growth 1Y-195.19%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-88.56%
OCF growth 3YN/A
OCF growth 5YN/A