SGI (SGI) Stock Analysis

Verdict: HOLD

SGI's high gross margin (44.6%) drives revenue growth, but net debt of $8.13B (5.06x EBITDA) and premium P/E (25.8x) limit near-term upside.

Investment score: 49/100

The model sees SGI as a Hold due to valuation expansion risk (25.8x P/E vs 15.1x peer median) and balance sheet leverage (5.06x Net Debt/EBITDA), despite resilient gross margins and CEO insider purchases.

Peers

PeerP/EP/BP/SEV/EBITDAROIC %Net margin %
MHK17.020.920.707.460.04
LZB15.131.190.5711.730.04
XMAX20.205.0134.60-120.511.86
ETD13.871.170.959.090.07
FLXS12.382.780.9610.260.07

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