Superior Group of Companies (SGC)
NASDAQ:SGC
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Superior Group of Companies
(NASDAQ:SGC)
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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.
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.
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Positive Factors
Negative 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.
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Superior Group of Companies (SGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$157.52M
Dividend Yield5.74%
Average Volume (3M)58.95K
Price to Earnings (P/E)20.7
Beta (1Y)1.20
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 Cap1.49
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit1.11
Enterprise Value/Ebitda9.14
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 Description
Superior 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 ...
How the Company Makes Money
SGC 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 temp...
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.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.
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.
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Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
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
Negative
9.98
Price Trends
10.07
Negative
9.76
Positive
10.19
Negative
Market Momentum
0.02
Positive
47.85
Neutral
33.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGC, the sentiment is Negative. The current price of 9.98 is below the 20-day moving average (MA) of 10.16, below the 50-day MA of 10.07, and below the 200-day MA of 10.19, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 33.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGC.
Superior Group of Companies Risk Analysis
Superior Group of Companies disclosed 34 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 | $157.52M | 20.70 | 3.62% | 5.74% | -0.44% | -55.22% | |
51 Neutral | $67.45M | -1.65 | -22.66% | ― | -5.26% | 42.84% | |
50 Neutral | $36.32M | 8.27 | 0.99% | 6.75% | 12.25% | ― | |
47 Neutral | $35.33M | -3.19 | -13.33% | ― | -7.76% | 49.20% | |
46 Neutral | $27.21M | 3.44 | -40.44% | ― | 2.58% | -502.04% | |
45 Neutral | $76.49M | -2.52 | -26.26% | 1.35% | 27.42% | -5275.12% |
* Consumer Cyclical Sector Average
SGC
Superior Group of Companies
10.03
-0.51
-4.81%
LAKE
Lakeland Industries
7.80
-12.59
-61.74%
UFI
Unifi
3.63
-1.27
-25.92%
VNCE
Vince Holding
2.04
0.00
0.00%
CULP
Culp
2.79
-2.56
-47.85%
JRSH
Jerash Holdings (US)
2.86
-0.42
-12.80%
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.