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SLEEP NUMBER CORP (SNBR) Stock Fundamental Analysis

NASDAQ:SNBR - Nasdaq - US83125X1037 - Common Stock - Currency: USD

14.49  -0.48 (-3.24%)

After market: 14.98 +0.49 (+3.38%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SNBR. SNBR was compared to 120 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 has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SNBR had negative earnings in the past year.
In the past year SNBR had a positive cash flow from operations.
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

With a Return On Assets value of -4.73%, SNBR is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 4.70%, SNBR perfoms like the industry average, outperforming 56.41% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SNBR is significantly above the industry average of 12.30%.
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

The Operating Margin of SNBR (1.76%) is comparable to the rest of the industry.
SNBR's Operating Margin has declined in the last couple of years.
SNBR has a better Gross Margin (58.80%) than 87.18% 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.
SNBR has more shares outstanding than it did 1 year ago.
SNBR has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SNBR has a worse debt to assets ratio.
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 0.50, we must say that SNBR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SNBR (0.50) is worse than 81.20% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z 0.5
ROIC/WACC0.47
WACC9.99%
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 99.15% 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.
The Quick ratio of SNBR (0.09) is worse than 97.44% 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%.
Measured over the past years, SNBR shows a small growth in Revenue. The Revenue has been growing by 4.27% on average per year.
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

SNBR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.13% yearly.
SNBR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.47% yearly.
EPS Next Y-38.75%
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

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

The Price/Earnings Ratio is negative for SNBR. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 38.81, the valuation of SNBR can be described as expensive.
SNBR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SNBR is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 38.81
SNBR Price Earnings VS Forward Price EarningsSNBR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

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 97.44% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.34
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

No dividends for SNBR!.
Industry RankSector Rank
Dividend Yield N/A

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SLEEP NUMBER CORP

NASDAQ:SNBR (2/21/2025, 8:00:02 PM)

After market: 14.98 +0.49 (+3.38%)

14.49

-0.48 (-3.24%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)03-05 2025-03-05/amc
Inst Owners90.07%
Inst Owner Change8.88%
Ins Owners3.64%
Ins Owner Change-0.06%
Market Cap324.14M
Analysts50
Price Target14.62 (0.9%)
Short Float %13.55%
Short Ratio9.77
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)14.67%
PT rev (3m)2.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 38.81
P/S 0.19
P/FCF N/A
P/OCF 32.43
P/B N/A
P/tB N/A
EV/EBITDA 3.34
EPS(TTM)-1.81
EYN/A
EPS(NY)0.37
Fwd EY2.58%
FCF(TTM)-0.73
FCFYN/A
OCF(TTM)0.45
OCFY3.08%
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 0.5
F-Score5
WACC9.99%
ROIC/WACC0.47
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-38.75%
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