Somnigroup International Inc. Common Stock (SGI)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable brands, honest cash earnings, conservative debt, and a price that leaves room for error. Somnigroup owns Tempur-Pedic, Sealy, Stearns & Foster, and Mattress Firm, so it has real brand and distribution strength. But the numbers are mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8B, net income $110.9M, and diluted EPS $0.52. In fiscal Q2 2025, the quarter ended 2025-06-30, revenue was $1.9B, net income $99.0M, and diluted EPS $0.47. Sales fell, but profit improved. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.8B and net income $104.2M. Fiscal 2025, ended 2025-12-31, produced revenue of $7.5B, net income of $384.1M, and diluted EPS of $1.84; fiscal 2024 had revenue of $4.9B, net income of $384.3M, and diluted EPS of $2.16. Profit was flat on much higher reported revenue, which deserves scrutiny. FairStock shows ROE of 17.52%, but ROCE of 5.53% is low, debt-to-equity is 1.98, and Altman Z-Score is 1.60—thin for comfort. Free cash flow yield is 5.8%, and Piotroski is 7/9. At the 2026-10-13 close of $62.87, P/E is 24.85, P/B is 4.09, Graham Number is $29.56, and margin of safety is -112.69%. FairStock labels it a SLOW GROWER: profit 1.9% a year over five years. I see a decent brand with a demanding price and a leveraged balance sheet. I would need more evidence of durable growth and safer debt before calling it a bargain.

In plain English: Somnigroup makes and sells mattresses and bedding under brands like Tempur-Pedic, Sealy, and Stearns & Foster. Recent sales slipped, but profits and cash flow still look positive, though the company carries a lot of debt. At $62.87, the stock looks expensive compared with its earnings and stated asset value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer