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Somnigroup International Inc.. (SGI) Fundamental Analysis & AI Grade 2026

SGI NYSE Household Furniture DE CIK: 0001206264
Updated This Month • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
C
72% Confidence
N/A
C
72% Conf
Pending
Analysis scheduled

📊 SGI Key Takeaways

Revenue: $1.8B
Net Margin: 5.8%
Free Cash Flow: $186.0M
Current Ratio: 0.78x
Debt/Equity: 1.41x
EPS: $0.49
AI Grade: C with 72% confidence
Somnigroup International Inc.. (SGI) receives a C fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $1.8B, net profit margin of 5.8%, and return on equity (ROE) of 3.3%, Somnigroup International Inc.. demonstrates mixed fundamentals in the Market sector. Below is our complete SGI stock analysis for 2026.

Is Somnigroup International Inc.. (SGI) a Good Investment?

Claude

SGI demonstrates strong topline growth (51.6% YoY) but profitability is deteriorating—net income declined despite revenue surge, and EPS fell 14.8% YoY. Critical liquidity stress with current ratio of 0.78x and quick ratio of 0.38x, combined with high leverage (1.41x D/E), creates material financial risk that outweighs growth momentum.

Somnigroup International Inc.. Key Strengths (SGI)

Claude
  • + Strong revenue growth of 51.6% YoY demonstrates market demand
  • + Positive free cash flow of $186M provides operational cushion
  • + Gross margin of 43.1% and interest coverage of 5.5x show debt serviceability

SGI Stock Risks: Somnigroup International Inc.. Investment Risks

Claude
  • ! Net income declined 0.3% YoY and EPS fell 14.8% despite 51.6% revenue growth—indicates severe margin compression and operational inefficiency
  • ! Current ratio of 0.78x and quick ratio of 0.38x signal acute short-term liquidity crisis and working capital stress
  • ! High leverage (1.41x D/E) with $4.4B long-term debt combined with deteriorating profitability creates refinancing and solvency risk
  • ! Net margin of only 5.8% is thin; ROE of 3.3% and ROA of 0.9% indicate capital destruction despite growth
  • ! 5 Form 4 insider filings in 90 days warrant monitoring for potential insider knowledge of deteriorating conditions

Key Metrics to Watch

Claude
  • * Operating margin trend—must improve from 10.4% to validate growth quality
  • * Current ratio and quick ratio—both must sustainably exceed 1.0 to resolve liquidity concerns
  • * Net income growth rate—must reaccelerate to match or exceed revenue growth to justify continuation
  • * Debt/equity ratio—trajectory and any refinancing activity given leverage concerns

Somnigroup International Inc.. (SGI) Financial Metrics & Key Ratios

Revenue
$1.8B
Net Income
$104.2M
EPS (Diluted)
$0.49
Free Cash Flow
$186.0M
Total Assets
$11.5B
Cash Position
$110.8M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SGI Profit Margin, ROE & Profitability Analysis

Gross Margin 43.1%
Operating Margin 10.4%
Net Margin 5.8%
ROE 3.3%
ROA 0.9%
FCF Margin 10.3%

SGI vs Market Sector: How Somnigroup International Inc.. Compares

How Somnigroup International Inc.. compares to Market sector averages

Net Margin
SGI 5.8%
vs
Sector Avg 12.0%
SGI Sector
ROE
SGI 3.3%
vs
Sector Avg 15.0%
SGI Sector
Current Ratio
SGI 0.8x
vs
Sector Avg 1.8x
SGI Sector
Debt/Equity
SGI 1.4x
vs
Sector Avg 0.7x
SGI Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Somnigroup International Inc.. Stock Overvalued? SGI Valuation Analysis 2026

Based on fundamental analysis, Somnigroup International Inc.. shows some fundamental concerns relative to the Market sector in 2026.

Return on Equity
3.3%
Sector avg: 15%
Net Profit Margin
5.8%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
1.41x
Sector avg: 0.7x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Somnigroup International Inc.. Balance Sheet: SGI Debt, Cash & Liquidity

Current Ratio
0.78x
Quick Ratio
0.38x
Debt/Equity
1.41x
Debt/Assets
72.7%
Interest Coverage
5.45x
Long-term Debt
$4.4B

SGI Revenue & Earnings Growth: 5-Year Financial Trend

SGI 5-year financial data: Year 2021: Revenue $4.9B, Net Income $189.5M, EPS $0.86. Year 2022: Revenue $4.9B, Net Income $348.8M, EPS $1.64. Year 2023: Revenue $4.9B, Net Income $624.5M, EPS $3.06. Year 2024: Revenue $4.9B, Net Income $455.7M, EPS $2.53. Year 2025: Revenue $7.5B, Net Income $368.1M, EPS $2.08.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Somnigroup International Inc..'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.08 reflects profitable operations.

SGI Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.3%
Free cash flow / Revenue

SGI Quarterly Earnings & Performance

Quarterly financial performance data for Somnigroup International Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $1.6B -$33.1M $-0.17
Q3 2025 $1.3B $130.0M $0.73
Q2 2025 $1.2B $65.9M $0.32
Q1 2025 $1.2B -$33.1M $-0.17
Q3 2024 $1.3B $113.3M $0.64
Q2 2024 $1.2B $92.4M $0.52
Q1 2024 $1.2B $76.3M $0.43
Q3 2023 $1.3B $113.3M $0.64

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Somnigroup International Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$246.5M
Cash generated from operations
Stock Buybacks
$26.2M
Shares repurchased (TTM)
Capital Expenditures
$60.5M
Investment in assets
Dividends Paid
$36.7M
Returned to shareholders

SGI SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Somnigroup International Inc.. (CIK: 0001206264)

📋 Recent SEC Filings

Date Form Document Action
May 26, 2026 4 xslF345X06/wk-form4_1779825762.xml View →
May 15, 2026 4 xslF345X06/wk-form4_1778877119.xml View →
May 15, 2026 4 xslF345X06/wk-form4_1778877001.xml View →
May 15, 2026 4 xslF345X06/wk-form4_1778876716.xml View →
May 15, 2026 4 xslF345X06/wk-form4_1778876366.xml View →

Frequently Asked Questions about SGI

What is the AI rating for SGI?

Somnigroup International Inc.. (SGI) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SGI's key strengths?

Claude: Strong revenue growth of 51.6% YoY demonstrates market demand. Positive free cash flow of $186M provides operational cushion.

What are the risks of investing in SGI?

Claude: Net income declined 0.3% YoY and EPS fell 14.8% despite 51.6% revenue growth—indicates severe margin compression and operational inefficiency. Current ratio of 0.78x and quick ratio of 0.38x signal acute short-term liquidity crisis and working capital stress.

What is SGI's revenue and growth?

Somnigroup International Inc.. reported revenue of $1.8B.

Does SGI pay dividends?

Somnigroup International Inc.. pays dividends, with $36.7M distributed to shareholders in the trailing twelve months.

Where can I find SGI SEC filings?

Official SEC filings for Somnigroup International Inc.. (CIK: 0001206264) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SGI's EPS?

Somnigroup International Inc.. has a diluted EPS of $0.49.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is SGI's fundamental grade?

Based on our AI fundamental analysis in May 2026, Somnigroup International Inc.. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SGI stock overvalued or undervalued?

Valuation metrics for SGI: ROE of 3.3% (sector avg: 15%), net margin of 5.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.

What is SGI's AI grade for 2026?

Our dual AI analysis gives Somnigroup International Inc.. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SGI's free cash flow?

Somnigroup International Inc..'s operating cash flow is $246.5M, with capital expenditures of $60.5M. FCF margin is 10.3%.

How does SGI compare to other Market stocks?

Vs Default sector averages: Net margin 5.8% (avg: 12%), ROE 3.3% (avg: 15%), current ratio 0.78 (avg: 1.8).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI