Education
About Us
Working with TipRanks
Follow Us
Superior Group of Companies (SGC)
NASDAQ:SGC
Top Page
Superior Group of Companies
(NASDAQ:SGC)
Select Model
Select Model
Rating:61Neutral
Price Target:
$10.50
▲(5.21% Upside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by stable overall financial condition and improved cash generation, but held back by thin/volatile profitability and only modest debt coverage. The earnings call supports a moderately positive outlook for EPS improvement in 2026, while technical signals are neutral and valuation is balanced by a high dividend yield versus an elevated P/E.
Positive Factors
Improving free cash flow
Superior's cash generation materially improved in 2025 with operating cash flow roughly $19.7M and free cash flow near $15.8M (a sharp year‑over‑year improvement). Durable FCF supports capital returns, modest buybacks/dividends, and funds reinvestment while reducing reliance on external financing, improving long‑term financial flexibility despite historically choppy cash flows.
Manageable leverage and stable balance sheet
Leverage has declined to a moderate level (debt‑to‑equity ~0.53 in 2025 versus ~0.84 in 2022), with stable equity and asset bases. This balance sheet stability provides structural flexibility for targeted M&A, working capital needs, and ongoing capital returns while limiting refinancing pressure and preserving options under varied macro scenarios.
Branded Products growth and margin resilience
The Branded Products segment delivered organic and acquisition‑led growth and improved gross margins despite tariff headwinds. A stronger branded product franchise diversifies revenue away from more cyclical end markets, supports consolidated gross‑margin resilience, and creates durable cross‑sell and program revenue that can sustain margins over multiple quarters.
Negative Factors
Thin, volatile profitability
Despite revenue recovery, net margins are thin (~1.2% in 2025) and ROE remains low (~3.6), reflecting inconsistent operating leverage. Persistent low margins mean small revenue or cost swings materially affect earnings, limiting durable internal return generation and reducing scope to absorb shocks or fund growth without external capital or sustained efficiency gains.
Contact Centers revenue decline and customer churn
Contact Centers exhibited durable operational risk with revenue down and notable client churn, including bankruptcy‑related losses. The segment faces structural margin pressure from higher agent costs and center consolidation, and recovery depends on winning replacement contracts and realizing AI efficiency gains, which can take multiple quarters to scale.
Modest top-line guidance and back-end weighted cadence
Management's 2026 revenue guide implies only modest growth (up to ~3%) and a back‑end weighted recovery, signaling limited top‑line momentum. Reliance on later‑year pipeline conversions and macro normalization raises execution risk for sustainable scale and margin expansion, constraining the company's ability to drive durable earnings gains absent consistent demand improvement.
Superior Group of Companies (SGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.58M
Dividend Yield5.74%
Average Volume (3M)58.95K
Price to Earnings (P/E)20.7
Beta (1Y)1.18
Revenue Growth-0.44%
EPS Growth-55.22%
CountryUS
Employees7,100
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.23
Shares Outstanding15,704,912
10 Day Avg. Volume78,479
30 Day Avg. Volume58,954
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)0.75
Price to Sales (P/S)0.26
P/FCF Ratio9.19
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda9.19
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)$578.70M
Superior Group of Companies Business Overview & Revenue Model
Company DescriptionSuperior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products. The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for personnel of hospitals and healthcare facilities; hotels; food and other restaurants; retail stores; special purpose industrial facilities; commercial markets; transportation; public and private safety and security organizations; and miscellaneous service uses. It also provides various products directly related to uniforms and service apparel; industrial laundry bags for linen suppliers and industrial launderers; personal protective equipment; and promotional and related products for branded marketing programs, corporate awards, incentives and recognition programs, event promotions, employee and consumer rewards and incentives, and specialty packaging and displays. This segment sells its products under the Fashion Seal Healthcare, HPI, and WonderWink brand names. The Remote Staffing Solutions segment provides multilingual telemarketing and business process outsourced solutions through the recruitment and employment of qualified English-speaking agents. The Promotional Products segment produces and sells promotional products and other branded merchandise under the BAMKO, Public Identity, Tangerine, Gifts by Design, and Sutter's Mill brands to corporate clients and universities. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.
How the Company Makes MoneySGC generates revenue primarily through its staffing services, which include temporary and permanent placement solutions for businesses across various industries. The company earns fees based on the placements it makes and the hours worked by temporary staff. Additionally, SGC's promotional products segment contributes significantly to its earnings by selling branded merchandise to companies looking to enhance their marketing efforts. The custom apparel division also generates revenue by producing and selling customized clothing items. Strategic partnerships with other businesses and organizations enhance SGC's market reach and allow for cross-selling opportunities, further bolstering its financial performance.
Superior Group of Companies Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: strong margin and profitability improvements (EBITDA +19%, EPS nearly doubled, SG&A reductions, robust cash/liquidity and share repurchases) and growth in the Branded Products segment offset softness in Healthcare Apparel and notable declines and churn in Contact Centers. Management emphasized disciplined cost control, AI‑driven efficiencies, early 2026 pipeline conversions and conservative 2026 guidance (back‑end weighted). Given the greater number and materiality of positive operating and financial improvements relative to the identified challenges, the tone is constructive but guarded due to macro uncertainty.Q4-2025 Updates
Positive Updates
Modest Revenue Growth with Back‑End Weighted Cadence
Consolidated Q4 revenue of $147.0M, up 1% year‑over‑year and up 6% sequentially; management expects 2026 revenue guidance of $572M–$585M (up to ~3% at the high end) with a back‑end weighted cadence.
Branded Products Growth and Acquisition Contribution
Branded Products revenue of $97.0M, up 5% year‑over‑year (and >$10M sequential increase); growth driven by the December 2024 3Point acquisition plus modest organic gains and large new program wins.
Meaningful Profitability Improvement
Q4 EBITDA was $8.6M, up from $7.3M (+~19% YoY); EBITDA margin improved 90 basis points to 5.9%; Q4 net income $3.5M vs $2.1M prior year and diluted EPS of $0.23 vs $0.13 (nearly doubled).
Expense Discipline and SG&A Reduction
SG&A reduced by ~$1.4M YoY despite revenue growth; SG&A as a percent of sales improved to 33.2% from 34.4% (≈120 bps improvement). Contact Centers SG&A reduced nearly $1M (≈10% YoY) via cost structure streamlining and AI.
Strong Cash Flow, Liquidity and Capital Returns
Year‑to‑date operating cash flow of $20M; cash and cash equivalents $24M (up $5M YoY); total liquidity (cash + revolver availability) >$100M. Q4 returned capital with $2M dividends and $2M in share repurchases (≈$10M remaining repurchase authorization).
Gross Margin Resilience
Consolidated gross margin of 36.9% nearly flat vs prior year (37.1%). Branded Products gross margin improved to 34.4% (up 50 bps YoY) despite higher tariffs; Healthcare Apparel gross margin largely flat at 33.6%.
Positive Outlook for 2026 EPS
Management provided 2026 diluted EPS guidance of $0.54–$0.66 versus $0.46 in 2025, implying meaningful earnings improvement driven by gross margin gains, SG&A discipline and lower interest expense.
Early 2026 Pipeline Conversions and AI Differentiation
Management reports early‑2026 conversions from a strengthened pipeline across segments; Contact Centers leveraging AI at scale (real‑time call scoring, coaching, noise cancellation, accent smoothing) as a competitive advantage and efficiency driver.
Negative Updates
Contact Centers Revenue Decline and Customer Losses
Contact Centers revenue of $22.0M, down 8% year‑over‑year; declines driven by customer downsizing and loss of existing customers (including bankruptcy‑related churn) that have not yet been fully offset by new wins.
Healthcare Apparel Softness
Healthcare Apparel revenue $29.0M, down 5% YoY reflecting weakness in wholesale retail/digital channels and constrained institutional (hospital) spending; Q4 softness tied to a couple of customers.
Higher Agent Costs and Gross Margin Pressure in Contact Centers
Contact Centers gross margin declined to 52.6%, down ~200 basis points YoY due to higher agent costs and a revenue mix shift after the July closure of a lower‑cost Jamaica center (partially offset by SG&A reductions).
Macroeconomic and Geopolitical Uncertainty Slowing Decision‑Making
Management repeatedly cited economic and geopolitical uncertainty causing customer hesitancy, longer sales cycles and delayed order patterns across all segments, contributing to a back‑end weighted year and slower new business commitments.
Tariff Environment Impacting Order Patterns
Higher tariffs affected customer ordering behavior through the year; while Branded Products still grew, tariffs contributed to irregular order patterns and operational complexity.
Limited Top‑Line Expansion
Overall consolidated revenue growth was only modest (+1% YoY in Q4), and 2026 revenue guidance targets modest growth (up to 3%), indicating top‑line momentum is tentative and dependent on macro normalization and pipeline conversions.
Company Guidance
Management guided 2026 consolidated revenue of $572–$585 million (implying ~3% growth at the high end) and diluted EPS of $0.54–$0.66 versus $0.46 in 2025, noting a back‑end weighted cadence for both top and bottom lines with Contact Centers expected to contribute meaningful growth starting in the latter part of Q2 into the back half of the year; they expect sales growth across all three segments, modest gross‑margin improvement, some SG&A leverage, lower net interest expense and working‑capital benefits. Additional metrics cited to support the plan include year‑end cash of $24 million, total liquidity over $100 million, $20 million of operating cash flow generated in 2025, a capex run‑rate near the prior $4–5 million (modestly higher planned), and continued capital returns (Q4 dividends $2M, share repurchases $2M, ~ $10M remaining on the buyback authorization).Superior Group of Companies Financial Statement Overview
Summary
Financials appear stable but not strong: revenue re-accelerated in 2025 (+20.7%), leverage is moderate (debt-to-equity ~0.53), and free cash flow improved (about $15.8M). Offsetting this, profitability remains thin and volatile (2025 net margin ~1.2%, ROE ~3.6%), and cash flow coverage of debt is only modest (~0.18x).Income Statement
Revenue growth re-accelerated in 2025 (+20.7% annual) after a modest 2024 (+4.1%) and a decline in 2023 (-6.1%), showing improving demand. However, profitability has been volatile: net margin fell to ~1.2% in 2025 from ~2.1% in 2024, and earnings remain well below the stronger 2020–2021 period (with 2022 showing a large loss). Also, key 2025 profitability line items (gross profit/operating profit/EBITDA) are not provided, limiting visibility into current operating leverage.56
Neutral
Balance Sheet
Leverage looks manageable with debt-to-equity around ~0.53 in 2025 (improved vs. the more levered 2022 level of ~0.84). Equity is stable (~$193M in 2025) and assets are steady (~$422M), suggesting balance sheet stability. The main drawback is weaker returns: return on equity is modest in 2025 (~3.6%) and below 2024 (~6.0%), indicating profitability is not currently strong enough to generate high shareholder returns.63
Positive
Cash Flow
Cash generation is generally supportive: 2025 operating cash flow was about $19.7M with free cash flow of ~$15.8M, and free cash flow improved sharply versus 2024 (reported growth ~199%). Free cash flow covered most of net income in 2025 (~0.80x), indicating earnings are reasonably backed by cash. Offsetting this, operating cash flow coverage versus debt is modest (~0.18x in 2025, down from ~0.33x in 2024), and cash flow has been choppy historically (notably negative in 2022).68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 566.18M | 565.68M | 543.30M | 578.83M | 536.99M |
| Gross Profit | 212.86M | 220.58M | 203.55M | 193.36M | 186.01M |
| EBITDA | 25.74M | 33.84M | 33.48M | -20.14M | 43.64M |
| Net Income | 7.00M | 12.00M | 8.77M | -31.97M | 29.44M |
Balance Sheet | |||||
| Total Assets | 421.84M | 415.13M | 422.45M | 456.94M | 470.25M |
| Cash, Cash Equivalents and Short-Term Investments | 23.69M | 18.77M | 19.90M | 17.72M | 8.94M |
| Total Debt | 101.59M | 101.09M | 110.52M | 162.39M | 121.95M |
| Total Liabilities | 229.03M | 216.28M | 224.81M | 264.34M | 243.25M |
| Stockholders Equity | 192.82M | 198.86M | 197.64M | 192.60M | 226.99M |
Cash Flow | |||||
| Free Cash Flow | 15.76M | 28.99M | 73.97M | -13.62M | -616.00K |
| Operating Cash Flow | 19.71M | 33.43M | 78.93M | -2.60M | 17.08M |
| Investing Cash Flow | -3.95M | -8.44M | -5.51M | -17.43M | -34.13M |
| Financing Cash Flow | -11.81M | -24.47M | -71.62M | 28.85M | 21.00M |
Superior Group of Companies Technical Analysis
Positive
9.98
Price Trends
10.02
Positive
9.73
Positive
10.18
Positive
Market Momentum
0.03
Positive
52.23
Neutral
40.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGC, the sentiment is Positive. The current price of 9.98 is below the 20-day moving average (MA) of 10.15, below the 50-day MA of 10.02, and below the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGC.
Superior Group of Companies Risk Analysis
Superior Group of Companies disclosed 35 risk factors in its most recent earnings report. Superior Group of Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Superior Group of Companies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $156.58M | 20.70 | 3.62% | 5.74% | -0.44% | -55.22% | |
51 Neutral | $67.82M | -1.65 | -22.66% | ― | -5.26% | 42.84% | |
50 Neutral | $36.45M | 8.27 | 0.99% | 6.75% | 12.25% | ― | |
47 Neutral | $35.33M | -3.19 | -13.33% | ― | -7.76% | 49.20% | |
46 Neutral | $28.95M | 3.44 | -40.44% | ― | 2.58% | -502.04% | |
45 Neutral | $75.70M | -2.52 | -26.26% | 1.35% | 27.42% | -5275.12% |
* Consumer Cyclical Sector Average
SGC
Superior Group of Companies
9.97
-0.26
-2.57%
LAKE
Lakeland Industries
7.72
-10.97
-58.70%
UFI
Unifi
3.65
-1.34
-26.85%
VNCE
Vince Holding
2.17
0.19
9.60%
CULP
Culp
2.79
-2.58
-48.04%
JRSH
Jerash Holdings (US)
2.87
-0.49
-14.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.