Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $137.49M
• Dividend Yield: 6.26%
• Average Volume (3M): 46.47K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.16
• Revenue Growth: -0.44%
• EPS Growth: -55.22%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.18
• Shares Outstanding: 15,968,792
• 10 Day Avg. Volume: 53,445
• 30 Day Avg. Volume: 46,466
• PEG Ratio: 0.61
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 9.13
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $16.00
• Price Target Upside: 78.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.44
• Revenue Forecast (FY): $564.40M

• Rating: 61 Neutral
• Price Target: $10.00 ▲(11.86% Upside)

The overall stock score of 61 reflects the company's current financial challenges, including declining revenue and profitability, which weigh heavily on the score. Technical indicators suggest a bearish trend, further impacting the score. However, the reasonable valuation and attractive dividend yield provide some support. The earnings call sentiment of cautious optimism is noted but not factored into the score due to its exclusion from the weighted calculation.

Positive Factors

Strong Pipeline and Order Backlog

A strong pipeline and order backlog indicate potential for future revenue growth as these orders are fulfilled, suggesting a positive outlook for sales in upcoming quarters.

SG&A Expense Reduction

Reducing SG&A expenses enhances profitability by lowering operational costs, which can improve margins and free up resources for strategic investments.

Healthy Balance Sheet

A healthy balance sheet with substantial liquidity provides financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Revenue Decline in Major Segments

Declining revenues in major segments highlight challenges in maintaining sales momentum, which could impact long-term growth and market position.

Gross Margin Reduction

A reduction in gross margin indicates increased cost pressures and reduced profitability, which can affect the company's ability to invest in growth initiatives.

Net Income Decrease

Decreasing net income reflects reduced profitability, which may limit the company's ability to reinvest in the business and return value to shareholders.

Superior Group of Companies Business Overview & Revenue Model

Company Description

Superior Group of Companies (SGC) is a diversified organization specializing in providing innovative solutions across various sectors, including human resources, promotional products, and branding. The company primarily focuses on staffing and talent acquisition services, along with offering custom promotional products and marketing services that enhance brand visibility for its clients. With a commitment to quality and customer satisfaction, SGC serves a wide range of industries, connecting businesses with skilled professionals and delivering tailored marketing solutions.

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 is facing challenges in revenue growth and profitability, as reflected in declining margins and negative revenue growth in the TTM. The balance sheet shows moderate leverage but declining returns on equity, while cash flow generation has weakened significantly. The company needs to address these challenges to improve financial stability and growth prospects.

Income Statement

Superior Group of Companies has shown a decline in revenue growth with a negative rate of -1.95% in the TTM, indicating challenges in maintaining sales momentum. The gross profit margin has decreased from 38.99% in 2024 to 28.27% in TTM, reflecting increased cost pressures. Net profit margin has also declined to 0.99% in TTM from 2.12% in 2024, suggesting reduced profitability. However, the company has maintained positive EBIT and EBITDA margins, albeit lower than previous years, indicating some level of operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased slightly to 0.56 in TTM from 0.51 in 2024, indicating a moderate increase in leverage. Return on equity has decreased to 2.89% in TTM from 6.04% in 2024, reflecting reduced profitability on shareholders' equity. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet shows moderate leverage and stable equity levels, but declining returns on equity.

Cash Flow

The company experienced a significant decline in free cash flow growth at -64.62% in TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.11, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is 0.52, indicating some cash conversion efficiency. Overall, the cash flow statement highlights challenges in cash generation and conversion, with potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	565.02M	565.68M	543.30M	578.83M	536.99M	526.70M
Gross Profit	212.81M	220.58M	203.55M	193.36M	186.01M	188.76M
EBITDA	24.40M	33.84M	33.48M	-20.14M	43.64M	61.59M
Net Income	5.63M	12.00M	8.77M	-31.97M	29.44M	41.03M
Balance Sheet
Total Assets	415.27M	415.13M	422.45M	456.94M	470.25M	393.92M
Cash, Cash Equivalents and Short-Term Investments	16.65M	18.77M	19.90M	17.72M	8.94M	5.17M
Total Debt	112.45M	101.09M	110.52M	162.39M	121.95M	90.38M
Total Liabilities	221.44M	216.28M	224.81M	264.34M	243.25M	202.29M
Stockholders Equity	193.84M	198.86M	197.64M	192.60M	226.99M	191.63M
Cash Flow
Free Cash Flow	5.27M	28.99M	73.97M	-13.62M	-616.00K	29.50M
Operating Cash Flow	10.20M	33.43M	78.93M	-2.60M	17.08M	41.36M
Investing Cash Flow	-8.93M	-8.44M	-5.51M	-17.43M	-34.13M	-6.57M
Financing Cash Flow	-3.07M	-24.47M	-71.62M	28.85M	21.00M	-38.44M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.94
• 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 8.94 is below the 20-day moving average (MA) of 9.19, below the 50-day MA of 9.97, and below the 200-day MA of 10.75, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 34.44 is Neutral, neither overbought nor oversold. The STOCH value of 11.46 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
JRSH	63 Neutral	$41.53M	50.39	0.99%	6.46%	12.25%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SGC	61 Neutral	$137.49M	23.65	2.86%	6.26%	-0.44%	-55.22%
VNCE	49 Neutral	$31.64M	―	-32.91%	―	-0.49%	-1427.68%
LAKE	49 Neutral	$132.65M	―	-15.81%	0.85%	39.13%	-1186.47%
CULP	48 Neutral	$50.55M	-4.16	-19.05%	―	-7.91%	32.31%
UFI	39 Underperform	$56.00M	―	-9.61%	―	-5.26%	42.84%

Superior Group of Companies Corporate Events

Superior Group Of Companies Faces Financial Risks Amid New Tariffs and Trade Policy Uncertainty

Superior Group Of Companies, Inc. faces significant business risks due to newly imposed tariffs and potential changes in trade agreements. The expiration of key trade preferences, such as AGOA and HOPE, could increase operational costs and necessitate a shift in sourcing and manufacturing strategies. If the company cannot mitigate these cost increases through supplier negotiations or customer pricing adjustments, its financial performance may suffer. The ongoing uncertainty surrounding U.S. trade policies and agreements poses a material threat to the company’s revenue and cash flow stability.

Superior Group’s Earnings Call: Cautious Optimism Amid Challenges

During the recent earnings call, Superior Group of Companies, Inc. expressed a sentiment of cautious optimism. The company highlighted significant cost reductions and a healthy balance sheet, yet acknowledged challenges such as revenue declines in major segments and a decrease in overall net income compared to the previous year. Despite these hurdles, the company remains optimistic due to strong pipelines and strategic investments, while also being mindful of the economic uncertainties that lie ahead.

Superior Group of Companies Reports Q3 2025 Earnings

Superior Group of Companies, Inc. is a diversified enterprise operating in the healthcare apparel, branded products, and contact centers sectors, known for its commitment to service, quality, and advanced technology. In its third quarter 2025 earnings report, the company reported total net sales of $138.5 million, a decrease from $149.7 million in the same quarter of the previous year, and net income of $2.7 million, down from $5.4 million. The company also announced a quarterly dividend of $0.14 per share, reflecting its ongoing commitment to shareholder value.

Superior Group Initiates Share Repurchase Plan

On September 19, 2025, Superior Group of Companies, Inc. initiated a 10b5-1 trading plan to repurchase shares of its outstanding common stock. This plan, part of a previously authorized share repurchase program, allows the company to buy back shares starting September 20, 2025, until the repurchase limit is reached or other specified events occur. The repurchases will be managed by an independent broker and are subject to certain constraints, potentially impacting the company’s stock market presence and shareholder value.

The most recent analyst rating on (SGC) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Superior Group of Companies stock, see the SGC Stock Forecast page.

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.