Somnigroup International Inc
Somnigroup International Inc Fundamental Analysis
Somnigroup International Inc (SGI) shows weak financial fundamentals with a PE ratio of 47.60, profit margin of 5.14%, and ROE of 13.16%. The company generates $7.5B in annual revenue with weak year-over-year growth of 0.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGI's fundamental strength across five key dimensions:
Efficiency Score
WeakSGI struggles to generate sufficient returns from assets.
Valuation Score
WeakSGI trades at a premium to fair value.
Growth Score
WeakSGI faces weak or negative growth trends.
Financial Health Score
WeakSGI carries high financial risk with limited liquidity.
Profitability Score
WeakSGI struggles to sustain strong margins.
Key Financial Metrics
Is SGI Expensive or Cheap?
P/E Ratio
SGI trades at 47.60 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SGI's PEG of 2.86 indicates potential overvaluation.
Price to Book
The market values Somnigroup International Inc at 5.88 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.97 times EBITDA. This is generally considered low.
How Well Does SGI Make Money?
Net Profit Margin
For every $100 in sales, Somnigroup International Inc keeps $5.14 as profit after all expenses.
Operating Margin
Core operations generate 10.16 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.16 in profit for every $100 of shareholder equity.
ROA
Somnigroup International Inc generates $3.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Somnigroup International Inc produces operating cash flow of $800.13M, showing steady but balanced cash generation.
Free Cash Flow
Somnigroup International Inc produces free cash flow of $633.22M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.02 in free cash annually.
FCF Yield
SGI converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
47.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How SGI Stacks Against Its Sector Peers
| Metric | SGI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 47.60 | 23.01 | Worse (Expensive) |
| ROE | 13.16% | 1228.00% | Weak |
| Net Margin | 5.14% | -4010.00% (disorted) | Weak |
| Debt/Equity | 2.66 | 0.78 | Weak (High Leverage) |
| Current Ratio | 0.83 | 2.35 | Weak Liquidity |
| ROA | 3.31% | -157546.00% (disorted) | Weak |
SGI outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Somnigroup International Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.60%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
31.95%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
21.92%
Industry Style: Defensive, Dividend, Low Volatility
High Growth