Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $161.76M
• Dividend Yield: 5.53%
• Average Volume (3M): 42.10K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.17
• Revenue Growth: 4.02%
• EPS Growth: -24.80%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.10
• Shares Outstanding: 15,968,292
• 10 Day Avg. Volume: 30,343
• 30 Day Avg. Volume: 42,100
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 8.75
• 1Y Price Target: $16.00
• Price Target Upside: 56.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $12.00 ▲(17.30% Upside)

Superior Group of Companies shows stable revenue growth and a balanced financial position, but faces challenges in profitability and cash flow growth. The earnings call provided a positive outlook with strong performance in key segments, though technical indicators suggest weak momentum. The stock's valuation is reasonable, supported by a high dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Branded Products Segment Success

The robust growth in Branded Products suggests a competitive edge and strong brand positioning, enhancing future revenue potential.

Strong Balance Sheet

A strong balance sheet with share repurchases reflects financial health and shareholder value focus, supporting long-term stability.

Negative Factors

Contact Center Revenue Decline

Declining revenues in the Contact Center segment indicate challenges in customer acquisition and retention, affecting growth prospects.

Customer Bankruptcy Impact

Customer bankruptcy impacts financial stability and highlights risks in client concentration, potentially affecting future cash flows.

Healthcare Apparel Margin Pressure

Margin pressure in Healthcare Apparel suggests cost management challenges, potentially impacting profitability and competitive positioning.

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 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 Money

SGC generates revenue through multiple streams, primarily from its staffing services, which include temporary and permanent placements of skilled professionals across various industries. The company earns fees based on a percentage of the employee's salary or hourly wage for successfully filling positions. Additionally, SGC's promotional products division generates income by designing, manufacturing, and distributing custom-branded merchandise for businesses, earning margins on the sale of these products. Furthermore, the company may engage in partnerships with client organizations and other service providers to enhance its offerings, allowing for cross-selling opportunities and expanding its market reach. Factors such as client retention, contract renewals, and the ability to secure new clients in growing sectors contribute significantly to SGC's overall earnings.

Superior Group of Companies Financial Statement Overview

Summary

Superior Group of Companies shows stable revenue generation and strong cash flow management. However, profitability pressures are evident with declining net and EBIT margins. The balance sheet shows improved leverage but reduced equity returns.

Income Statement

Superior Group of Companies shows stable gross profit margins around 38%, indicating strong cost control. However, net profit margins have declined from 7.8% in 2021 to 1.3% in TTM (Trailing-Twelve-Months), reflecting profitability challenges. Revenue growth was inconsistent, with a slight dip in TTM compared to 2024. EBIT margins decreased from 6.4% to 2.8% in TTM, demonstrating pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.54 in TTM, indicating better leverage management. Return on equity (ROE) declined to 3.8% in TTM, showing reduced shareholder returns. The equity ratio remains stable around 47%, reflecting solid asset management despite some fluctuations.

Cash Flow

Operating cash flow to net income ratio of 3.0 in TTM suggests strong cash generation relative to reported earnings. Free cash flow to net income ratio is positive, indicating good cash conversion despite lower net income. Free cash flow growth rate is negative compared to 2024, hinting at potential investment or operational adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	576.24M	565.68M	543.30M	578.83M	536.99M	526.70M
Gross Profit	220.27M	220.58M	203.55M	193.36M	186.01M	188.76M
EBITDA	28.25M	33.84M	33.48M	-20.14M	43.64M	61.59M
Net Income	8.29M	12.00M	8.77M	-31.97M	29.44M	41.03M
Balance Sheet
Total Assets	423.26M	415.13M	422.45M	456.94M	470.25M	393.92M
Cash, Cash Equivalents and Short-Term Investments	21.03M	18.77M	19.90M	17.72M	8.94M	5.17M
Total Debt	112.74M	101.09M	110.52M	162.39M	119.86M	89.26M
Total Liabilities	231.18M	216.28M	224.81M	264.34M	243.25M	202.29M
Stockholders Equity	192.08M	198.86M	197.64M	192.60M	226.99M	191.63M
Cash Flow
Free Cash Flow	14.90M	28.99M	73.97M	-13.62M	-616.00K	29.50M
Operating Cash Flow	20.07M	33.43M	78.93M	-2.60M	17.08M	41.36M
Investing Cash Flow	-9.18M	-8.44M	-5.51M	-17.43M	-34.13M	-6.57M
Financing Cash Flow	-3.52M	-24.47M	-71.62M	28.85M	21.00M	-38.44M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.23 is below the 20-day moving average (MA) of 11.06, below the 50-day MA of 11.52, and below the 200-day MA of 11.80, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 33.00 is Neutral, neither overbought nor oversold. The STOCH value of 10.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGC.

Superior Group of Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGC	66 Neutral	$161.76M	19.89	4.22%	5.53%	4.02%	-24.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LAKE	55 Neutral	$148.25M	―	-15.81%	0.74%	39.13%	-1186.47%
VNCE	55 Neutral	$42.54M	6.22	-32.91%	―	-0.49%	-1427.68%
CULP	51 Neutral	$54.83M	―	-19.05%	―	-7.91%	32.31%
JRSH	48 Neutral	$41.59M	50.46	1.30%	6.10%	17.12%	―
UFI	45 Neutral	$85.01M	―	-7.94%	―	-1.87%	57.41%

Superior Group of Companies Corporate Events

Superior Group Appoints Michael Koempel as President

On September 12, 2025, Superior Group of Companies appointed Michael W. Koempel as President, while he continues as CFO. Koempel’s promotion reflects his significant contributions to the company’s financial and operational excellence, with segment presidents now reporting to him. His leadership is expected to drive strategic growth and shareholder value.

The most recent analyst rating on (SGC) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Superior Group of Companies stock, see the SGC Stock Forecast page.