📊 SGI Key Takeaways
Is Somnigroup International Inc.. (SGI) a Good Investment?
While SGI demonstrates strong top-line growth of 51.6%, profitability is stagnating with net income declining 0.3% and EPS down 14.8%, indicating severe margin compression and operational challenges. The company's overleveraged balance sheet (1.48x debt/equity, $4.6B debt vs. $134.9M cash) combined with deteriorating liquidity ratios (0.83x current, 0.42x quick) creates refinancing risk, despite adequate interest coverage masking near-term distress.
Why Buy Somnigroup International Inc.. Stock? SGI Key Strengths
- Exceptional revenue growth of 51.6% year-over-year in competitive household furniture sector
- Robust free cash flow generation of $633.2M with 8.5% FCF margin demonstrates underlying business cash generation
- Strong interest coverage ratio of 22.0x provides substantial debt service cushion despite high leverage
SGI Stock Risks: Somnigroup International Inc.. Investment Risks
- Severe profitability compression: 51.6% revenue growth coupled with flat net income (-0.3%) and declining EPS (-14.8%) signals cost structure deterioration or competitive pressure
- Dangerous liquidity position with current ratio 0.83x and quick ratio 0.42x, both below prudent thresholds, creating working capital vulnerability
- Elevated leverage (1.48x debt/equity) with only $134.9M cash against $4.6B long-term debt in cyclical furniture sector exposed to economic downturns
Key Metrics to Watch
- Gross margin trend and gross profit growth rate (currently 42.6%)
- Operating expense ratio and path to operating margin improvement above current 10.1%
- Debt reduction progress and cash position build relative to debt obligations
Somnigroup International Inc.. (SGI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
SGI Profit Margin, ROE & Profitability Analysis
SGI vs Market Sector: How Somnigroup International Inc.. Compares
How Somnigroup International Inc.. compares to Market sector averages
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.
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
SGI Revenue & Earnings Growth: 5-Year Financial Trend
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
SGI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $1.2B | $90.6M | $0.51 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Somnigroup International Inc.. Dividends, Buybacks & Capital Allocation
SGI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Somnigroup International Inc.. (CIK: 0001206264)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SGI
What is the AI rating for SGI?
Somnigroup International Inc.. (SGI) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SGI's key strengths?
Claude: Exceptional revenue growth of 51.6% year-over-year in competitive household furniture sector. Robust free cash flow generation of $633.2M with 8.5% FCF margin demonstrates underlying business cash generation.
What are the risks of investing in SGI?
Claude: Severe profitability compression: 51.6% revenue growth coupled with flat net income (-0.3%) and declining EPS (-14.8%) signals cost structure deterioration or competitive pressure. Dangerous liquidity position with current ratio 0.83x and quick ratio 0.42x, both below prudent thresholds, creating working capital vulnerability.
What is SGI's revenue and growth?
Somnigroup International Inc.. reported revenue of $7.5B.
Does SGI pay dividends?
Somnigroup International Inc.. pays dividends, with $127.4M 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 $1.84.
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 rating reflects both perspectives for balanced insights.
Is SGI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Somnigroup International Inc.. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SGI stock overvalued or undervalued?
Valuation metrics for SGI: ROE of 12.4% (sector avg: 15%), net margin of 5.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy SGI stock in 2026?
Our dual AI analysis gives Somnigroup International Inc.. a combined SELL rating 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 $800.1M, with capital expenditures of $166.9M. FCF margin is 8.5%.
How does SGI compare to other Market stocks?
Vs Default sector averages: Net margin 5.1% (avg: 12%), ROE 12.4% (avg: 15%), current ratio 0.83 (avg: 1.8).