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SGI

NYSE
Favorable · 60/100

Somnigroup International Inc

Consumer Staples
Consumer products

$77.48

1.2%

Updated Today 12:11 PM ET

Report Card

SGI at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Favorable · 60/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 7.9% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$16.50B

P/E

31.64x

Forward P/E (est.)

22.6x

ROE

17.3%

Revenue Growth

43.5%

EPS Growth

57.3%

Profit Margin

6.8%

FCF Yield

Debt / Equity

1.51x

ROIC

12.0%

Interest Coverage

5.81x

Current Ratio

0.78x

Dividend Yield

0.9%

Implied Growth (rev. DCF)

5.0%

Rating Score

60/100

Business Overview
Research

Somnigroup International Inc (SGI) is a large-cap company in the Consumer products industry, part of the Consumer Staples sector of the S&P 500, with a market value around $16.50B.

In its latest reported year it generated about $7.48B in revenue and $384.10M in net profit.

Our model rates SGI Favorable (60/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what SGI's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. SGI trades near $77.48, around its 50-day average ($71.98) and 200-day average ($82.50). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 66 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.

Volatility — ATR. Average True Range is the typical daily move. SGI's is $2.84 (~3.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month SGI found buyers near $66.78 (support) and sellers near $79.77 (resistance); its 52-week range is $60.39–$98.56. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.2× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

11.0%

4/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $3.08B in 2016 to $7.48B in 2025, a 10.4% compound annual growth rate. The most recent year grew a strong 43.5% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research
3/4 checks passedProfitableNet margin above sector midpointROE above 12%ROIC above 10%

Gross Margin

42.6%

Operating Margin

10.1%

Net Margin

5.1%

ROE

17.3%

Somnigroup International Inc keeps about 6.8% of each sales dollar as net profit, with a 42.6% gross margin and 10.1% operating margin. Return on equity is 17.3% and return on invested capital about 12.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research
2/4 checks passedDebt under 1× equityDebt under 2× equityInterest covered 3×+Short-term bills covered

Total Debt

$4.61B

Net Debt

$4.54B

Net Debt / EBITDA

6.01x

Debt / Equity

1.51x

Leverage: debt-to-equity is 1.5x, and operating profit covers interest about 5.8x, with a current ratio of 0.8x. That is elevated leverage, which raises risk if earnings or rates move against it. It carries roughly $4.61B of total debt against $69.40M of cash.

Cash Flow Analysis
Research
1/1 checks passedMarket expects achievable growth (<8%)

Operating CF

$800.10M

Free Cash Flow

$633.20M

FCF Margin

8.5%

In the latest year Somnigroup International Inc produced about $800.10M of operating cash flow and $633.20M of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

31.64x

P/S

2.21x

P/B

6.03x

EV / EBITDA

20.12x

SGI trades at 31.6x trailing earnings (about 22.6x on estimated forward earnings), 2.2x sales, and 6.0x book value. Reverse-engineering today's price implies the market expects roughly 5.0% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$124.66

Current price

$77.48

+61% · Below fair-value estimate

Starting FCF (latest 10-K)

$633.20M

Growth, years 1–5

20.0%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$9.78B
PV of terminal value$16.44B
Estimated equity value$26.22B
Shares outstanding210M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
31.6xExpensive
Forward P/E
22.6xFair
P/S ratio
2.2xFair
Revenue growth
43.5%Strong
EPS growth
57.3%Strong
Gross margin
42.6%Average
Net margin
6.8%Weak
ROE
17.3%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $77.48 today · expected CAGR 22%35%

Metric20262027202820292030
Revenue$10.77B$15.50B$22.32B$32.15B$46.29B
Net income$538.31M$775.16M$1.12B$1.61B$2.31B
EPS$2.56$3.69$5.31$7.64$11.00
Share price (low)$48.63$70.02$100.83$145.19$209.08
Share price (high)$81.90$117.93$169.82$244.54$352.13
CAGR (low–high)-37% / 6%-5% / 23%9% / 30%17% / 33%22% / 35%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for SGI:

  • Revenue is growing 43.5% a year, a sign of real demand.
  • Strong return on equity (17.3%) shows capital is put to work well.
  • Our model's overall read is Favorable (60/100).
Bear Case

The case against SGI:

  • Elevated leverage (debt/equity 1.5x) adds financial risk.
  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Valuation risk — at 31.6x earnings, disappointing results could compress the multiple.

Balance-sheet risk — debt/equity of 1.5x magnifies the impact of higher rates or weaker earnings.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen favourably: Somnigroup International Inc is a large-cap consumer staples business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 31.6x earnings, which our model scores Favorable (60/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

SGI — frequently asked questions

Is SGI a good stock to buy?

We don't give buy or sell advice. Our model rates Somnigroup International Inc Favorable (60/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is SGI's rating on The Stocks School?

Somnigroup International Inc currently scores 60/100 (Favorable) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does SGI's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Somnigroup International Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for SGI calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this SGI analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell SGI. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.