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Somnigroup International Inc. (SGI) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Somnigroup International Inc.

SGIMarket cap $13BPrice $62.7

Country🇺🇸United States

SectorConsumer

IndustryHousehold

Makes and sells mattresses, bedding, and sleep accessories under brands like Tempur-Pedic and Sealy, formed after their 2024 merger. Now controls a huge share of the US mattress market, betting that better sleep is a trillion-dollar problem worth solving.

In Bastion Portfolios?

52W Return-25%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+15%8

Revenue Forecast

Rev CAGR (1y)+19%8

Rev CAGR (3y)+17%9

Rev CAGR (5y)+11%8

Earnings Forecast

EPS Growth Y+1+50%9

EPS Growth Y+2+32%9

EPS Growth Y+3+24%8

Quality

Margins

EBIT Margin13%6

Net Income Margin7%4

Free Cash Flow Margin10%6

Debt

Net Debt/EBITDA3.03

Efficiency

ROE18%7

ROA5%6

Earnings Stability55

GEAR+AVERAGE62

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)165

P/E Ratio (Forward 3y)126

P/BV4.14

EV Multiples

EV/EBITDA Fwd134

EV/EBIT Fwd175

Yield

Free Cash Flow Yield5.8%7

Dividend Yield1.1%3

Momentum

Short term

1 month return-10%2

3 month return-16%2

YTD return-29%1

Mid term

Price vs 52wHigh64%3

1 year return-24%2

Long term

3 year return+58%6

5 year return+44%5

Risk Shield

Price Risk

Beta1.04

Volatility41%4

Free Cash Flow

Free Cash Flow Margin10%6

Free Cash Flow Yield5.8%7

Quality

ROCE10%6

Earnings Stability55

Net Debt/EBITDA3.03

02Growth

Is it actually growing, and how fast?

SGISomnigroup International

Revenue FY25$4.9B

GROWTH RATING↗

VERY STRONG87 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+15%8

Revenue, next 1Y+19%8

Revenue, next 3Y, CAGR+17%9

Revenue, next 5Y, CAGR+11%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+50%9

EPS growth, FY27E+32%9

EPS growth, FY28E+24%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 87% of companies worldwide.

Revenue grew 15%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 17%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 15%/yr over the last 3 years and is set to keep growing around 17%/yr.

The runway holds up: revenue is set to grow 11%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 32%/yr vs revenue 17%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK15 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-16%2

YTD return-29%1

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return-24%2

3-year return+58%6

5-year return+44%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+58% over three years and +44% over five), roughly average for the market.

WEAKNESSES

It's down 24% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-16%) and so far this year (-29%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Somnigroup International Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

SGISomnigroup International

Revenue FY25$4.9B

GROWTH RATING↗

VERY STRONG87 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+15%8

Revenue, next 1Y+19%8

Revenue, next 3Y, CAGR+17%9

Revenue, next 5Y, CAGR+11%8

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+50%9

EPS growth, FY27E+32%9

EPS growth, FY28E+24%8

GROWTH ASSESSMENT

STRENGTHS

It out-grows 87% of companies worldwide.

Revenue grew 15%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Revenue is set to grow 17%/yr over the next 3 years, ahead of most of the market.8/10

Revenue grew 15%/yr over the last 3 years and is set to keep growing around 17%/yr.

The runway holds up: revenue is set to grow 11%/yr over five years.8/10

Earnings are set to grow faster than sales (EPS about 32%/yr vs revenue 17%/yr), so margins should widen.

WATCH

None flagged.

WEAKNESSES

None flagged.

BOTTOM LINE

Elite Compounder

A top-tier grower.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK15 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-10%2

3-month return-16%2

YTD return-29%1

MID & LONG-TERM▾SCORE

% of 52-week high64%3

1-year return-24%2

3-year return+58%6

5-year return+44%5

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+58% over three years and +44% over five), roughly average for the market.

WEAKNESSES

It's down 24% over the past year, now 36% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-10%), over three months (-16%) and so far this year (-29%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Somnigroup International Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community