Somnigroup International Inc (SGI) Stock Analysis
Verdict: WATCH (do not buy)
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
Analysis as of
Is Somnigroup International Inc stock worth reviewing? The TradeMates thesis
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.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 45/100 (weight 15%)
- Technical Momentum: 38/100 (weight 15%)
- Earnings Quality: 52/100 (weight 15%)
- Insider Sentiment: 70/100 (weight 10%)
- Analyst Consensus: 75/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Somnigroup International Inc opportunities and risks
What speaks for SGI
- Margin Superiority Over Peers
What speaks against SGI
- Elevated Balance Sheet Leverage and Debt Load
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| SGI | 25.8x | 1.8x | 16.2x | 44.6% | 7.0% | 5.6% |
| MHK | 17.0x | 0.7x | 7.5x | 24.6% | 4.2% | 10.3% |
| LZB | 15.1x | 0.6x | 11.7x | 44.4% | 3.9% | 8.5% |
| XMAX | 20.2x | 34.6x | n/a | 22.9% | 185.9% | -0.8% |
| ETD | 13.9x | 1.0x | 9.1x | 61.2% | 6.9% | 7.5% |
| FLXS | 12.4x | 1.0x | 10.3x | 24.7% | 7.2% | 10.8% |
| Peer median | 15.1x | 1.0x | 9.1x | 24.7% | 6.9% | 8.5% |
Frequently asked questions about Somnigroup International Inc (SGI)
Is SGI stock a good investment?
The TradeMates model rates Somnigroup International Inc as WATCH (do not buy) with an investment score of 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. This is algorithmic model output, not personal investment advice.
Is SGI stock a buy?
The TradeMates model verdict for SGI is WATCH (do not buy) with an investment score of 49/100. Treat this as a model signal to review, not a personal buy recommendation.