Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $159.05M
• Dividend Yield: 5.74%
• Average Volume (3M): 58.95K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.21
• Revenue Growth: -0.44%
• EPS Growth: -55.22%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.23
• Shares Outstanding: 15,968,792
• 10 Day Avg. Volume: 78,479
• 30 Day Avg. Volume: 58,954
• PEG Ratio: -0.55
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 9.19
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 10.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.77
• Revenue Forecast (FY): $583.23M

• Rating: 60 Neutral
• Price Target: $10.50 ▲(5.21% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

SGC scores as average: stable balance sheet and improved cash generation support the rating, but thin/volatile profitability and modest returns weigh most heavily. Technical signals are mixed/neutral, while valuation is balanced by a strong dividend yield versus a relatively high P/E. Earnings call commentary points to cost discipline and improved outlook, tempered by segment revenue declines and margin pressure.

Positive Factors

Manageable leverage and stable equity base

Improved leverage and a stable equity base provide structural financial resilience, lowering refinancing risk and preserving strategic optionality. A healthier capital structure supports continued investment, dividend payments, and the ability to fund growth or acquisitions without materially stressing liquidity over the next several quarters.

Material improvement in free cash flow

Sustained positive free cash flow strengthens the firm's capacity to self-fund operations, invest in growth, and sustain shareholder distributions. The large year-over-year FCF improvement signals improving cash conversion that can support capital allocation flexibility and reduce reliance on external financing over the medium term.

Demonstrated cost discipline and operational improvement

Meaningful SG&A reductions and sequential EBITDA improvement point to stronger cost control and operating leverage potential. If sustained, these structural expense efficiencies can raise durable profitability, improve margins even amid revenue variability, and enhance long-term cash generation.

Negative Factors

Thin and volatile profitability

Very low net margins and earnings volatility limit the company's ability to generate consistent returns and reinvest in the business. Structural margin weakness increases sensitivity to cost shocks and demand swings, constraining long-term ROE and the capacity to sustainably grow shareholder value.

Multiple segments showing revenue declines

Concurrent declines across core segments reduce diversification benefits and indicate demand fragility in end markets. Structural top-line weakness in multiple businesses makes recovery uneven, pressures fixed-cost absorption, and raises execution risk for management's growth plans over the coming quarters.

Modest operating cash flow coverage of debt and choppy cash history

Low OCF-to-debt coverage and historically volatile cash flow limit financial flexibility during downturns and increase refinancing or liquidity risk. Even with recent FCF gains, the modest coverage ratio constrains the company's ability to absorb shocks or pursue sizable strategic investments without relying on external funding.

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 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 Financial Statement Overview

Summary

Financials look stable but not strong: revenue growth re-accelerated in 2025 (+20.7%), leverage is moderate (debt-to-equity ~0.53), and free cash flow improved to ~$15.8M. Offsetting this are thin/volatile profitability (net margin ~1.2% in 2025; ROE ~3.6%) and only modest operating cash flow coverage of debt (~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.

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.

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).

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	565.02M	566.18M	565.68M	543.30M	578.83M	536.99M
Gross Profit	212.81M	0.00	220.58M	203.55M	193.36M	186.01M
EBITDA	24.40M	0.00	33.84M	33.48M	-20.14M	43.64M
Net Income	5.63M	7.00M	12.00M	8.77M	-31.97M	29.44M
Balance Sheet
Total Assets	415.27M	421.84M	415.13M	422.45M	456.94M	470.25M
Cash, Cash Equivalents and Short-Term Investments	16.65M	23.69M	18.77M	19.90M	17.72M	8.94M
Total Debt	112.45M	101.59M	101.09M	110.52M	162.39M	121.95M
Total Liabilities	221.44M	229.03M	216.28M	224.81M	264.34M	243.25M
Stockholders Equity	193.84M	192.82M	198.86M	197.64M	192.60M	226.99M
Cash Flow
Free Cash Flow	5.27M	15.76M	28.99M	73.97M	-13.62M	-616.00K
Operating Cash Flow	10.20M	19.71M	33.43M	78.93M	-2.60M	17.08M
Investing Cash Flow	-8.93M	-3.95M	-8.44M	-5.51M	-17.43M	-34.13M
Financing Cash Flow	-3.07M	-11.81M	-24.47M	-71.62M	28.85M	21.00M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 10.13, above the 50-day MA of 9.89, and below the 200-day MA of 10.14, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SGC	60 Neutral	$159.05M	27.27	2.86%	5.74%	-0.44%	-55.22%
UFI	51 Neutral	$71.54M	-3.10	-9.61%	―	-5.26%	42.84%
JRSH	50 Neutral	$40.77M	23.75	0.99%	6.75%	12.25%	―
VNCE	46 Neutral	$39.75M	-2.01	-33.24%	―	2.58%	-502.04%
LAKE	45 Neutral	$87.57M	-2.00	-28.97%	1.35%	27.42%	-5275.12%
CULP	41 Neutral	$40.01M	-3.71	-18.32%	―	-7.76%	49.20%