A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
SOMNIGROUP INTERNATIONAL INC.
SGI
$14.9B
Mkt Cap
$71.56
+3.94%
SOMNIGROUP INTERNATIONAL INC. (SGI) has a current P/E ratio of 38.9, compared to its historical median P/E of 21.8. The stock is currently considered Expensive based on its historical valuation range.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a 5-year average return on invested capital (ROIC) of 17.1%. This indicates strong capital allocation and a potential competitive advantage.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a market capitalization of $14.9B. It is classified as a large-cap stock.
Yes, SOMNIGROUP INTERNATIONAL INC. (SGI) pays a dividend with a trailing twelve-month yield of 0.85%. The company also returns capital through share buybacks, with a buyback yield of 0.89%.
Based on historical P/E analysis, SOMNIGROUP INTERNATIONAL INC. (SGI) appears expensive. The current P/E of 38.9 is 79% above its historical median of 21.8. The estimated fair value CAGR (P/E method) is 14.9%.
SOMNIGROUP INTERNATIONAL INC. (SGI) operates in the Household Furniture industry, within the Consumer Cyclical sector.
Somnigroup is the world's largest bedding company operating through three strategic segments: Mattress Firm (U.S. retail specialty stores), Tempur Sealy North America (manufacturing, distribution, and retail in the U.S., Canada, and Mexico), and Tempur Sealy International (manufacturing, distribution, and retail in Europe, Asia-Pacific, and Latin America). The company earns revenue through a vertically integrated omni-channel model combining manufacturing, distribution, and retail, with a portfolio of iconic brands including Tempur-Pedic, Sealy, and Stearns & Foster. Somnigroup's distribution network spans over 2,800 retail stores, approximately 30 e-commerce platforms, over 70 manufacturing facilities, and four research and development centers globally, supported by more than 20,000 employees. The business model benefits from significant scale advantages in sourcing, logistics, and advertising efficiency, with a focus on product innovation and brand investment to drive market share gains and consumer preference. The company operates in the $120 billion global sleep industry, serving consumers in over 100 countries through a combination of direct retail, e-commerce, and wholesale distribution channels.
【Industry recovery and synergy realization】 Management expects the global bedding industry to stabilize and gradually recover from the challenging 2025 environment, with Tempur Sealy North America and international businesses positioned to deliver mid-single-digit like-for-like sales growth in 2026. The company is executing on announced pricing actions to offset commodity inflation while maintaining margin expansion through operational efficiencies and the realization of sales and cost synergies from the Mattress Firm integration. Capital allocation priorities include completing the $150 million Mattress Firm store refresh program by 2027, investing in brand walls and advertising, and returning at least 50% of free cash flow to shareholders through dividends and share repurchases while maintaining leverage in the 2-3x range. Management is also pursuing the proposed combination with Leggett & Platt, which is expected to close by year-end and deliver accretion to adjusted earnings per share before synergies, with at least $50 million of annual EBITDA synergies on a fully implemented basis.
| Metric | Target | Period |
|---|---|---|
| Adjusted earnings per share | $3.00–$3.40 | FY2026 |
| Sales (after intercompany eliminations) | approximately $7.8 billion | FY2026 |
| Adjusted EBITDA | approximately $1.45 billion | FY2026 |
| Reported gross margin | slightly above 45% | FY2026 |
| Capital expenditures | approximately $225 million | FY2026 |
| Interest expense | approximately $230 million | FY2026 |
| Tax rate | 25% | FY2026 |
| Diluted share count | 213 million shares | FY2026 |
| Pricing lift to sales | $50 million | H2 2026 |
| Annualized pricing lift | approximately $100 million | FY2026 annualized |
| 2028 target EPS |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 7.5B | 7.5B | 4.9B | 4.9B | 4.9B | 4.9B |
| Net Income | 384M | 384M | 384M | 368M | 456M | 625M |
| EPS | $1.84 | $1.84 | $2.16 | $2.08 | $2.53 | $3.06 |
| Free Cash Flow | 633M | 633M | 569M | 385M | 72M | 600M |
| ROIC | 6.3% | 8.7% | 15.8% | 15.2% | 19.3% | 26.3% |
| Gross Margin | 42.6% | 42.6% | 41.1% | 40.3% | 41.6% | 43.8% |
| Debt/Equity | 2.15 | 2.15 | 7.99 | 10.10 | -152.46 | 10.01 |
| Dividends/Share | $0.61 | $0.60 | $0.52 | $0.44 | $0.40 | $0.32 |
| Operating Income | 755M | 755M | 634M | 607M | 681M | 912M |
| Operating Margin | 10.1% | 10.1% | 12.9% | 12.3% | 13.8% | 18.5% |
| ROE | 12.4% | 20.9% | 87.1% | 244.3% | 345.6% | 158.2% |
| Shares Outstanding | 209M | 209M | 178M | 177M | 180M | 204M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.0B | 3.2B | 3.1B | 2.8B | 2.7B | 3.1B | 3.7B | 4.9B | 4.9B | 4.9B | 4.9B | 7.5B | 7.5B |
| Gross Margin | 38.5% | 39.6% | 41.2% | 40.7% | 41.5% | 43.2% | 44.6% | 43.8% | 41.6% | 40.3% | 41.1% | 42.6% | 42.6% |
| R&D | 22M | 29M | 27M | 22M | 22M | 23M | 23M | 27M | 29M | 31M | 31M | 33M | 33M |
| SG&A | 281M | 648M | 636M | 586M | 588M | 666M | 740M | 923M | 993M | 921M | 939M | 1.7B | 1.7B |
| EBIT | 276M | 307M | 413M | 296M | 256M | 347M | 532M | 912M | 681M | 607M | 634M | 755M | 755M |
| Op. Margin | 9.2% | 9.7% | 13.2% | 10.7% | 9.5% | 11.2% | 14.5% | 18.5% | 13.8% | 12.3% | 12.9% | 10.1% | 10.1% |
| Net Income | 109M | 65M | 191M | 151M | 101M | 190M | 349M | 625M | 456M | 368M | 384M | 384M | 384M |
| Net Margin | 3.6% | 2.0% | 6.1% | 5.5% | 3.7% | 6.1% | 9.5% | 12.7% | 9.3% | 7.5% | 7.8% | 5.1% | 5.1% |
| Non-Recurring | 0 | 14M | 8.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -14M | -14M |
| Returns on Capital | |||||||||||||
| ROIC | 9.7% | 11.2% | 14.7% | 9.8% | 8.5% | 10.7% | 18.2% | 26.3% | 19.3% | 15.2% | 15.8% | 8.7% | 6.3% |
| ROE | 67.8% | 26.2% | 155.4% | 447.9% | 61.4% | 66.0% | 80.8% | 158.2% | 345.6% | 244.3% | 87.1% | 20.9% | 12.4% |
| ROA | 4.1% | 2.5% | 7.1% | 5.6% | 3.7% | 6.6% | 11.0% | 16.4% | 10.5% | 8.3% | 7.3% | 4.4% | 3.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 225M | 234M | 166M | 223M | 208M | 315M | 655M | 723M | 379M | 570M | 667M | 800M | 800M |
| Free Cash Flow | 178M | 168M | 104M | 156M | 134M | 227M | 543M | 600M | 72M | 385M | 569M | 633M | 633M |
| Owner Earnings | 122M | 118M | 61M | 116M | 71M | 172M | 348M | 487M | 146M | 340M | 429M | 469M | 469M |
| CapEx | 48M | 66M | 62M | 67M | 74M | 88M | 111M | 123M | 307M | 185M | 97M | 167M | 167M |
| Maint. CapEx | 90M | 94M | 89M | 94M | 112M | 117M | 203M | 175M | 180M | 183M | 202M | 291M | 291M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 126M | 2.4M | 0 | 0 | 0 |
| D&A | 90M | 94M | 89M | 94M | 112M | 117M | 203M | 175M | 180M | 183M | 202M | 291M | 291M |
| CapEx/OCF | 21.1% | 28.1% | 37.7% | 26.0% | 35.5% | 28.0% | 17.0% | 17.1% | 80.9% | 32.5% | 14.6% | 20.9% | 20.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 63M | 71M | 78M | 93M | 127M | 127M |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.8% | 1.4% | 1.1% | 1.0% | 0.8% | 0.9% |
| Share Buybacks | 2.2M | 1.3M | 535M | 45M | 4.6M | 106M | 332M | 816M | 667M | 36M | 44M | 132M | 132M |
| Buyback Yield | 0.1% | 0.0% | 13.7% | 1.4% | 0.2% | 2.3% | 6.0% | 8.8% | 11.2% | 0.4% | 0.5% | 0.7% | 0.9% |
| Stock-Based Comp | 13M | 23M | 16M | 13M | 25M | 27M | 105M | 61M | 53M | 48M | 36M | 41M | 41M |
| Debt Repayment | 511M | 988M | 1.9B | 1.5B | 1.2B | 1.3B | 1.4B | 2.7B | 1.8B | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 1.5B | 1.3B | 1.8B | 1.7B | 1.6B | 1.7B | 1.6B | 2.6B | 3.3B | 3.2B | 2.8B | 6.5B | 6.5B |
| Cash & Equiv. | 63M | 154M | 65M | 41M | 46M | 65M | 65M | 301M | 69M | 75M | 1.7B | 135M | 135M |
| Long-Term Debt | 1.5B | 1.3B | 1.8B | 1.7B | 1.6B | 1.5B | 1.3B | 2.3B | 2.7B | 2.5B | 3.7B | 4.6B | 4.6B |
| Debt/Equity | 7.72 | 5.01 | -42.05 | 15.58 | 7.67 | 5.00 | 3.38 | 10.01 | -152.46 | 10.10 | 7.99 | 2.15 | 2.15 |
| Interest Coverage | 3.0 | 3.0 | 5.0 | 3.4 | 2.8 | 4.0 | 6.9 | 13.8 | 6.6 | 4.7 | 4.7 | 2.8 | 2.8 |
| Equity | 203M | 290M | -45M | 113M | 215M | 360M | 504M | 286M | -22M | 323M | 559M | 3.1B | 3.1B |
| Total Assets | 2.6B | 2.7B | 2.7B | 2.7B | 2.7B | 3.1B | 3.3B | 4.3B | 4.4B | 4.6B | 6.0B | 11.6B | 11.6B |
| Total Liabilities | 2.4B | 2.4B | 2.7B | 2.6B | 2.5B | 2.7B | 2.8B | 4.0B | 4.4B | 4.2B | 5.4B | 8.5B | 8.5B |
| Intangibles | 727M | 695M | 679M | 667M | 649M | 641M | 630M | 751M | 716M | 715M | 701M | 2.6B | 2.6B |
| Retained Earnings | 1.0B | 1.1B | 1.3B | 1.4B | 1.5B | 1.7B | 2.0B | 2.6B | 3.0B | 3.3B | 3.6B | 3.8B | 3.8B |
| Working Capital | 184M | 96M | 107M | 31M | 136M | 127M | -6.4M | 222M | 214M | 195M | 105M | -271M | -271M |
| Current Assets | 722M | 809M | 668M | 607M | 805M | 900M | 968M | 1.3B | 1.2B | 1.1B | 1.1B | 1.3B | 1.3B |
| Current Liabilities | 538M | 713M | 561M | 577M | 669M | 773M | 975M | 1.1B | 981M | 908M | 960M | 1.6B | 1.6B |
| Per Share Data | |||||||||||||
| EPS | 0.44 | 0.26 | 0.80 | 0.69 | 0.12 | 0.22 | 0.41 | 3.06 | 2.53 | 2.08 | 2.16 | 1.84 | 1.84 |
| Owner EPS | 0.49 | 0.47 | 0.25 | 0.53 | 0.08 | 0.19 | 0.41 | 2.39 | 0.81 | 1.92 | 2.41 | 2.24 | 2.24 |
| Book Value | 0.81 | 1.16 | -0.19 | 0.51 | 0.25 | 0.41 | 0.59 | 1.40 | -0.12 | 1.83 | 3.14 | 14.89 | 14.89 |
| Cash Flow/Share | 0.90 | 0.93 | 0.69 | 1.02 | 0.24 | 0.36 | 0.77 | 3.54 | 2.10 | 3.22 | 3.75 | 3.83 | 3.23 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | 0.00 | 0.00 | 0.32 | 0.40 | 0.44 | 0.52 | 0.60 | 0.61 |
| Shares Out. | 248.9M | 250.5M | 239.0M | 218.6M | 873.9M | 881.4M | 850.7M | 204.1M | 180.1M | 177.0M | 177.9M | 208.8M | 208.8M |
| Valuation | |||||||||||||
| P/E Ratio | 29.9 | 57.7 | 20.4 | 21.9 | 21.7 | 24.4 | 15.9 | 14.8 | 13.0 | 24.2 | 25.3 | 49.9 | 38.9 |
| P/FCF | 18.3 | 25.1 | 37.6 | 21.2 | 64.3 | 81.6 | 40.9 | 15.4 | 82.2 | 23.2 | 17.1 | 30.2 | 23.6 |
| EV/EBIT | 17.2 | 18.0 | 13.9 | 17.1 | 14.7 | 17.5 | 12.9 | 12.1 | 12.8 | 18.8 | 21.1 | 31.4 | 28.5 |
| Price/Book | 16.1 | 14.6 | N/A | 29.4 | 10.1 | 12.9 | 11.0 | 32.3 | N/A | 27.6 | 17.4 | 6.2 | 4.8 |
| Price/Sales | 1.1 | 1.3 | 1.1 | 1.1 | 1.0 | 1.2 | 1.1 | 1.6 | 1.1 | 1.4 | 1.8 | 2.0 | 2.0 |
| FCF Yield | 5.5% | 4.0% | 2.7% | 4.7% | 6.2% | 4.9% | 9.8% | 6.5% | 1.2% | 4.3% | 5.9% | 3.3% | 4.2% |
| Market Cap | 3.3B | 4.2B | 3.9B | 3.3B | 2.2B | 4.6B | 5.6B | 9.2B | 5.9B | 8.9B | 9.7B | 19.2B | 14.9B |
| Avg. Price | 12.86 | 15.78 | 14.83 | 13.02 | 12.10 | 16.53 | 18.58 | 37.93 | 28.79 | 39.97 | 50.99 | 72.06 | 71.56 |
| Year-End Price | 13.08 | 16.87 | 16.28 | 15.15 | 9.85 | 20.98 | 26.15 | 45.21 | 32.99 | 50.41 | 54.57 | 91.75 | 71.56 |
SOMNIGROUP INTERNATIONAL INC. passes 3 of 9 quality checks, indicating weak fundamentals.
SOMNIGROUP INTERNATIONAL INC. trades at 38.9x trailing earnings, compared to its 15-year median P/E of 21.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 23.8x vs a median of 33.9x. The company's 5-year average ROIC is 17.1% with a gross margin of 41.9%. Total shareholder yield (dividends + buybacks) is 1.7%. At current prices, the estimated annualized return to fair value is +13.5%.
SOMNIGROUP INTERNATIONAL INC. (SGI) reported annual revenue of $7.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a net profit margin of 5.1%. This is a modest margin.
SOMNIGROUP INTERNATIONAL INC. (SGI) generated $633 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a debt-to-equity ratio of 2.15. This indicates higher leverage, which may increase financial risk.
SOMNIGROUP INTERNATIONAL INC. (SGI) reported earnings per share (EPS) of $1.84 in its most recent fiscal year.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a return on equity (ROE) of 20.9%. This indicates the company generates strong returns for shareholders.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a 5-year average gross margin of 41.9%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for SOMNIGROUP INTERNATIONAL INC. (SGI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
SOMNIGROUP INTERNATIONAL INC. (SGI) has a book value per share of $14.89, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the global bedding industry to stabilize and gradually recover from the challenging 2025 environment, with Tempur Sealy North America and international businesses positioned to deliver mid-single-digit like-for-like sales growth in 2026. The company is executing on announced pricing actions to offset commodity inflation while maintaining margin expansion through operational efficiencies and the realization of sales and cost synergies from the Mattress Firm integration. Capital allocation priorities include completing the $150 million Mattress Firm store refresh program by 2027, investing in brand walls and advertising, and returning at least 50% of free cash flow to shareholders through dividends and share repurchases while maintaining leverage in the 2-3x range. Management is also pursuing the proposed combination with Leggett & Platt, which is expected to close by year-end and deliver accretion to adjusted earnings per share before synergies, with at least $50 million of annual EBITDA synergies on a fully implemented basis.
Based on recent SEC filings and earnings calls, SOMNIGROUP INTERNATIONAL INC. (SGI) has provided the following forward guidance: Adjusted earnings per share: $3.00–$3.40 (FY2026); Sales (after intercompany eliminations): approximately $7.8 billion (FY2026); Adjusted EBITDA: approximately $1.45 billion (FY2026); Reported gross margin: slightly above 45% (FY2026); Capital expenditures: approximately $225 million (FY2026), plus 6 additional metrics.
| $5.15 |
| FY2028 |
Adjusted earnings per share (FY2026): “We expect adjusted earnings per share to be between $3.00 and $3.40 for the full year.”
Sales (after intercompany eliminations) (FY2026): “This guidance range contemplates a sales midpoint of approximately $7.8 billion after intercompany eliminations.”
Adjusted EBITDA (FY2026): “all of which we expect to result in Adjusted EBITDA of approximately $1.45 billion at the midpoint.”
Reported gross margin (FY2026): “We also expect reported gross margin slightly above 45%”
Capital expenditures (FY2026): “Regarding capital expenditures, we expect 2026 CapEx approximately $225 million, which includes $75 million of investments in Mattress Firm store refreshes and brand wall installation.”
Interest expense (FY2026): “interest expense of approximately $230 million”
Tax rate (FY2026): “a tax rate of 25%”
Diluted share count (FY2026): “with a diluted share count of 213 million shares.”