Sleep Number Corporation Common Stock (SNBR)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

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

I look at Sleep Number and see a direct-to-consumer sleep-solutions business that has lost its way. At the 2026-07-17 close of $0.03, the market capitalization is just $54.1M, down from a 52-week high of $13.94. That collapse reflects the numbers: revenue growth of -7.81%, profit growth of -999%, EPS of -$7.58, and a fiscal Q1 2026 loss of $50.3M on $319.0M of revenue, a -15.77% net margin. The company generated -$23.7M in trailing free cash flow, a FairStock FCF yield of -43.7%. Those are not the marks of a business with pricing power or a durable moat. The balance sheet signals are equally troubling: Altman Z-score of -2.47, Piotroski F-score 3/9, ROCE -1.09%, and a FairStock Score of 15/100. P/B is not available, ROE is not available, and the P/E of 0.00 is not meaningful with negative earnings. Sleep Number sells smart beds and bedding through stores, online, phone, and chat, and it still has 3,000 employees and $319M of quarterly revenue. But direct-to-consumer scale is only valuable if it earns a profit. The Lynch category is 'none' because only 0 years of filed results are available, and the rules need three. At $0.03, the price looks statistically cheap, but Graham would ask for a margin of safety in assets or earning power; the data show negative earning power and negative cash flow. I see a speculative turnaround, not a proven bargain. Until revenue stabilizes and cash flow turns positive, the equity is a call option on survival, not an investment I could underwrite with confidence.

In plain English: Sleep Number sells smart beds, adjustable bases, and bedding directly to customers. The business looks weak: sales are shrinking, it is losing money, and cash flow is negative. The share price is very low compared with its 52-week high, but because there are no profits and no clear asset value given, it does not look like a safe bargain.

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Data as of 2026-07-17 close · note generated 2026-10-15 · model deepseek-flash

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