Latest Ratios: P/E Ratio 33.9x · EV/EBITDA 16.6x · ROE 20.8%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.1B | $18.7B | $10.1B | $9.0B | $6.2B | $9.6B | $5.7B | $2.9B | $3.5B | $3.1B | $2.3B |
| Enterprise Value | $21.2B | $26.8B | $14.5B | $12.2B | $9.5B | $12.2B | $7.4B | $2.9B | $3.5B | $3.0B | $2.1B |
| P/E Ratio → | 33.86 | 48.52 | 26.25 | 24.50 | 13.57 | 15.37 | 16.46 | — | — | — | — |
| P/S Ratio | 1.75 | 2.50 | 2.05 | 1.83 | 1.26 | 1.95 | 1.56 | 5.43 | 6.67 | 5.78 | 2.96 |
| P/B Ratio | 4.18 | 5.99 | 17.78 | 27.11 | — | 32.57 | 11.16 | 52.40 | 65.12 | 37.30 | 17.44 |
| P/FCF | 20.70 | 29.50 | 17.75 | 23.48 | 85.61 | 16.02 | 10.55 | 27.91 | 20.65 | 17.25 | 38.84 |
| P/OCF | 16.38 | 23.34 | 15.16 | 15.85 | 16.34 | 13.29 | 8.76 | 17.47 | 14.84 | 13.61 | 23.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.59 | 2.93 | 2.48 | 1.93 | 2.47 | 2.00 | 5.37 | 6.68 | 5.69 | 2.78 |
| EV / EBITDA | 16.63 | 20.99 | 18.08 | 16.47 | 11.75 | 11.87 | 11.70 | 287.48 | — | — | 3466.91 |
| EV / EBIT | 21.55 | 35.80 | 22.62 | 20.25 | 13.95 | 13.67 | 13.92 | — | — | — | — |
| EV / FCF | — | 42.34 | 25.39 | 31.77 | 131.25 | 20.29 | 13.56 | 27.61 | 20.68 | 16.97 | 36.45 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.4% | 44.4% | 44.2% | 43.2% | 41.6% | 43.8% | 44.6% | 27.1% | 25.8% | 26.1% | 24.6% |
| Operating Margin | 13.2% | 13.2% | 12.9% | 12.3% | 13.8% | 18.5% | 14.5% | -0.2% | -6.5% | -10.3% | -1.8% |
| Net Profit Margin | 5.1% | 5.1% | 7.8% | 7.5% | 9.3% | 12.7% | 9.5% | -2.1% | -7.5% | -10.0% | -0.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.8% | 20.8% | 85.2% | 229.3% | 322.4% | 154.5% | 122.7% | -20.6% | -57.8% | -49.7% | -2.3% |
| ROA | 4.4% | 4.4% | 7.3% | 8.3% | 10.5% | 16.4% | 19.0% | -3.0% | -10.4% | -13.7% | -0.6% |
| ROIC | 9.1% | 9.1% | 11.3% | 13.4% | 16.6% | 27.3% | 36.7% | -2.1% | -56.9% | -353.6% | -45.4% |
| ROCE | 13.1% | 13.1% | 14.6% | 17.3% | 20.5% | 32.6% | 42.2% | -0.6% | -19.6% | -30.0% | -6.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.65 | 2.65 | 7.86 | 9.80 | — | 9.70 | 3.32 | 1.12 | 1.33 | 0.73 | 0.27 |
| Debt / EBITDA | 6.47 | 6.47 | 5.59 | 4.40 | 4.17 | 2.79 | 2.70 | 6.20 | — | — | 57.50 |
| Net Debt / Equity | — | 2.61 | 7.66 | 9.57 | — | 8.68 | 3.19 | -0.57 | 0.07 | -0.60 | -1.07 |
| Net Debt / EBITDA | 6.37 | 6.37 | 5.44 | 4.30 | 4.09 | 2.50 | 2.60 | -3.14 | — | — | -227.34 |
| Debt / FCF | — | 12.84 | 7.64 | 8.29 | 45.64 | 4.27 | 3.01 | -0.30 | 0.02 | -0.28 | -2.39 |
| Interest Coverage | 2.80 | 2.80 | 4.74 | 4.65 | 6.60 | 13.43 | 6.88 | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.83 | 0.83 | 1.11 | 1.21 | 1.22 | 1.21 | 0.99 | 1.58 | 1.51 | 1.28 | 1.65 |
| Quick Ratio | 0.42 | 0.42 | 0.64 | 0.68 | 0.65 | 0.77 | 0.67 | 1.24 | 1.09 | 1.05 | 1.34 |
| Cash Ratio | 0.09 | 0.09 | 0.12 | 0.08 | 0.07 | 0.29 | 0.07 | 0.56 | 0.34 | 0.53 | 0.87 |
| Asset Turnover | — | 0.64 | 0.82 | 1.08 | 1.13 | 1.14 | 1.11 | 1.50 | 1.34 | 1.45 | 1.88 |
| Inventory Turnover | 6.60 | 6.60 | 6.15 | 5.79 | 5.17 | 5.98 | 6.53 | 6.95 | 4.67 | 8.27 | 9.36 |
| Days Sales Outstanding | — | 17.50 | 29.94 | 31.97 | 31.34 | 31.05 | 38.09 | 58.79 | 82.78 | 49.64 | 28.47 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 0.7% | 0.9% | 0.9% | 1.1% | 0.7% | — | — | — | — | — |
| Payout Ratio | 33.2% | 33.2% | 24.1% | 21.1% | 15.5% | 10.1% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2016 | FY 2015 | FY 2014 | FY 2013 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.0% | 2.1% | 3.8% | 4.1% | 7.4% | 6.5% | 6.1% | — | — | — | — |
| FCF Yield | 4.8% | 3.4% | 5.6% | 4.3% | 1.2% | 6.2% | 9.5% | 3.6% | 4.8% | 5.8% | 2.6% |
| Buyback Yield | 1.0% | 0.7% | 0.4% | 0.4% | 10.8% | 8.5% | 5.8% | 18.5% | 0.0% | 0.1% | 0.3% |
| Total Shareholder Yield | 2.0% | 1.4% | 1.4% | 1.3% | 11.9% | 9.2% | 5.8% | 18.5% | 0.0% | 0.1% | 0.3% |
| Shares Outstanding | — | $209M | $178M | $177M | $180M | $204M | $212M | $208M | $207M | $207M | $207M |
Includes 30+ ratios · 16 years · Updated daily
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Quick answers to the most common questions about buying SGI stock.
Somnigroup International Inc's current P/E ratio is 33.9x. The historical average is 20.4x. This places it at the 88th percentile of its historical range.
Somnigroup International Inc's current EV/EBITDA is 16.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.6x.
Somnigroup International Inc's return on equity (ROE) is 20.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 46.2%.
Based on historical data, Somnigroup International Inc is trading at a P/E of 33.9x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Somnigroup International Inc's current dividend yield is 0.98% with a payout ratio of 33.2%.
Somnigroup International Inc has 44.4% gross margin and 13.2% operating margin. Operating margin between 10-20% is typical for established companies.
Somnigroup International Inc's Debt/EBITDA ratio is 6.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Goodwill impairment and leverage spike
Metrics are mathematically derived from official filings.
Premium Multiple on Recovering Earnings
SGI trades at 35.2x trailing earnings but 20.6x forward, implying the market expects substantial profit recovery. According to reported figures, the PEG of 15.1 suggests growth is priced at a steep premium.
The forward P/E of 20.6 is nearly half the trailing multiple, indicating that analysts project a sharp rebound in earnings from the depressed 2025Q1 levels. However, the PEG ratio of 15.1 is extremely high, suggesting that the market is paying a premium for growth that may already be reflected in consensus estimates. Compared to peers like Sleep Number and Purple Innovation, which trade at negative multiples due to losses, SGI's positive valuation reflects its relative profitability, but the absolute level appears stretched if the recent margin compression persists.
Margin Resilience Amid Volume Swings
Gross margin has held steady between 43% and 45% over ten quarters, as per financial statements, while operating margin swung from 0.8% to 14.7%, indicating high operating leverage and cost discipline.
The stability of gross margin suggests that SGI maintains pricing power or efficient cost controls, even as revenue fluctuates. Operating margin volatility is driven by fixed costs, as seen in the swing from 0.8% in 2025Q1 to 14.7% in 2025Q3. The most recent quarter shows operating margin at 11.1%, down from the peak, which may indicate that the company is investing in growth or facing higher input costs. Net margin of 6.1% in 2026Q2 is below the 10% achieved in 2024Q3, suggesting that the earnings recovery is not yet complete.
Return on Capital Rebuilding from Cyclical Low
ROIC improved to 2.0% in 2026Q2 from 0.1% in 2025Q1, as per reported data, but remains well below the 4.4% peak in 2024Q3, indicating a slow recovery in capital efficiency.
The sharp decline in ROIC to near zero in 2025Q1 was driven by a temporary loss and a surge in invested capital from the acquisition. While ROIC has recovered to 2.0%, it is still below the levels seen in 2024, suggesting that the company is not yet generating adequate returns on its expanded asset base. The increase in equity from $559M to $3.2B, largely from the acquisition, has diluted returns, and the goodwill-heavy balance sheet may continue to weigh on ROIC unless the acquired business delivers synergies.
Working Capital Efficiency Improves Post-Acquisition
Cash conversion cycle shortened to 31 days in 2026Q2 from 56 days in 2024Q1, as per financial statements, driven by faster receivables collection and lower inventory days, indicating improved working capital management.
DSO fell from 35 days to 17 days, and DIO from 65 to 58 days, while DPO increased from 44 to 45 days, all contributing to a more efficient cash cycle. This improvement may reflect better collection processes or a shift in sales mix. However, the current ratio has deteriorated to 0.75, indicating that current liabilities exceed current assets, which could strain liquidity if the cycle lengthens again. The efficiency gains are positive, but they may be partially offset by the need to fund growth.
Rapid Deleveraging After Acquisition Spike
Debt-to-equity fell to 0.65 in 2026Q2 from a peak of 2.65 in 2025Q4, as per reported figures, while interest coverage improved to 3.51, indicating reduced financial risk.
The acquisition in 2025Q1 led to a spike in debt, pushing D/E to 2.65 and D/EBITDA to 24.34, but the company has since reduced total debt from $8.3B to $2.1B, a dramatic improvement. Interest coverage of 3.51 is still below the 6.54 seen in 2024Q3, but it is recovering. The rapid deleveraging suggests strong cash flow generation, but the remaining debt and goodwill impairment risk warrant monitoring. The D/EBITDA of 8.02 is still elevated, indicating that EBITDA must continue to grow to comfortably service debt.
Thin Liquidity Buffer Raises Concern
Current ratio fell to 0.75 in 2026Q2 from 1.11 in 2024Q4, with cash at $112M, as per balance sheet data, indicating a tight liquidity position that could be vulnerable to stress.
The quick ratio of 0.37 is particularly low, suggesting that SGI relies heavily on inventory to meet short-term obligations. While the company has generated strong operating cash flow, the thin liquidity buffer may limit flexibility. If revenue growth stalls or working capital needs increase, the company could face difficulty covering near-term liabilities. However, the recent deleveraging and access to credit markets may mitigate this risk, but investors should monitor the current ratio closely.
Misapplied Metric: P/E on Cyclical Earnings
The trailing P/E of 35.2 is misleading for SGI because earnings are highly cyclical and were depressed in 2025Q1, as per reported data, making forward earnings a better gauge.
Using trailing P/E for a company with volatile earnings can overstate or understate value. SGI's earnings swung from a loss in 2025Q1 to a profit in subsequent quarters, so the trailing P/E is distorted by the low earnings base. A more appropriate metric is EV/EBITDA, which is less affected by non-cash items and capital structure. The forward EV/EBITDA of 17.0 is more stable and reflects the market's expectation of normalized earnings. Investors should also consider the high goodwill balance, which could lead to impairment charges that reduce book value and affect P/B.