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
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| MHK | 17.02 | 0.92 | 0.70 | 7.46 | — | 0.04 |
| LZB | 15.13 | 1.19 | 0.57 | 11.73 | — | 0.04 |
| XMAX | 20.20 | 5.01 | 34.60 | -120.51 | — | 1.86 |
| ETD | 13.87 | 1.17 | 0.95 | 9.09 | — | 0.07 |
| FLXS | 12.38 | 2.78 | 0.96 | 10.26 | — | 0.07 |