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Superior Group of Companies (SGC)
NASDAQ:SGC
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Superior Group of Companies (SGC) AI Stock Analysis

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SGC

Superior Group of Companies

(NASDAQ:SGC)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
$14.50
▲(45.29% Upside)
Action:Reiterated
Date:05/30/26
SGC scores moderately well primarily on improving fundamentals (stronger recent cash flow and manageable leverage) and supportive technical momentum (price above major moving averages with positive MACD). The score is held back by still-thin profitability and historical earnings volatility, plus valuation that is only reasonable given the margin profile; the latest earnings call was cautiously positive with reiterated guidance but highlighted meaningful segment and macro risks.
Positive Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for dividends, buybacks, debt reduction and reinvestment. Strong cash conversion versus earnings increases resilience across cycles, supporting strategic flexibility and financing of growth or M&A over the next 2–6 months.
Negative Factors
Thin Profitability
Very low net margins limit the firm’s ability to absorb cost shocks, invest in growth, or sustainably increase shareholder returns. Structural margin compression versus prior years means improvements must be sustained across segments to materially strengthen long-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Sustained positive operating and free cash flow provides durable internal funding for dividends, buybacks, debt reduction and reinvestment. Strong cash conversion versus earnings increases resilience across cycles, supporting strategic flexibility and financing of growth or M&A over the next 2–6 months.
Read all positive factors

Superior Group of Companies (SGC) vs. SPDR S&P 500 ETF (SPY)

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 makes money primarily by selling products and services across its operating segments and collecting revenue from customers for (1) the manufacture/sourcing and sale of uniforms, workwear, and corporate apparel programs; and (2) the sale of pro...

Superior Group of Companies Earnings Call Summary

Earnings Call Date:May 04, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: consolidated revenue, gross margin and EBITDA improved, EPS turned positive, cash flow and liquidity are strong, and management maintained full-year guidance. Key strengths include branded products momentum, margin expansion in that segment, a rich sales pipeline and cost reductions in contact centers. Headwinds include an 8% decline in contact center revenue, margin pressure in Healthcare Apparel, geopolitical and tariff uncertainties, and elevated SG&A levels. On balance, the positive operational and financial trends and strong balance sheet outweigh the segment-specific challenges.
Positive Updates
Consolidated Revenue Growth
Total revenue grew 3% year-over-year to $141 million in Q1 2026, reflecting a solid start to the year and supporting the company's maintained full-year revenue guidance of $572M–$585M.
Negative Updates
Contact Centers Revenue Decline
Contact Centers revenue declined 8% year-over-year to $22 million, primarily due to prior-year client attrition. While sequential improvement was noted, the segment remains a drag on consolidated top-line growth in Q1.
Read all updates
Q1-2026 Updates
Negative
Consolidated Revenue Growth
Total revenue grew 3% year-over-year to $141 million in Q1 2026, reflecting a solid start to the year and supporting the company's maintained full-year revenue guidance of $572M–$585M.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance of $572–585 million in net sales and diluted EPS of $0.54–0.66 (vs. $0.46 in 2025), noting results are typically back‑half weighted; the outlook is supported by a Q1 that saw consolidated revenue up 3% to $141.0M, gross margin of 37.1% (+30 bps), SG&A at 35.8% of sales ($50M including $1M severance), EBITDA of $4.8M (3.4% margin, +80 bps versus prior year’s $3.5M), net income ≈ $0.8M (EPS $0.06 vs a $0.05 loss prior year), segment performance of Branded Products $91M (+5%, GM 34.1%, SG&A ~27%), Healthcare Apparel $29M (+5%, GM 35.6%), Contact Centers $22M (−8%, GM 52.2%, SG&A down >200 bps), plus a strong pipeline, $23M cash, >$9M operating cash flow in Q1 (and $20M in 2025), net interest ≈ $0.9M (down from >$1.2M), $2M dividends paid, $0.7M repurchased with $9.4M remaining authorization—factors management cited in maintaining the guidance.

Superior Group of Companies Financial Statement Overview

Summary
Recent cash generation is a clear strength (positive TTM operating cash flow and free cash flow with a strong rebound), and leverage appears manageable (debt-to-equity ~0.5 and improved from 2022). Offsetting this, profitability remains thin (~1% net margin in 2024–TTM) with meaningful historical volatility (including a large loss in 2022), keeping overall durability only moderate.
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
72
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue569.97M566.18M565.68M543.30M578.83M536.99M
Gross Profit214.76M212.86M220.58M203.55M193.36M186.01M
EBITDA26.11M25.74M33.84M33.48M-20.14M43.64M
Net Income8.59M7.00M12.00M8.77M-31.97M29.44M
Balance Sheet
Total Assets406.52M421.84M415.13M422.45M456.94M470.25M
Cash, Cash Equivalents and Short-Term Investments23.17M23.69M18.77M19.90M17.72M8.94M
Total Debt99.23M101.59M101.09M110.52M162.39M121.95M
Total Liabilities213.77M229.03M216.28M224.81M264.34M243.25M
Stockholders Equity192.75M192.82M198.86M197.64M192.60M226.99M
Cash Flow
Free Cash Flow27.67M15.76M28.99M73.97M-13.62M-616.00K
Operating Cash Flow31.05M19.71M33.43M78.93M-2.60M17.08M
Investing Cash Flow-3.38M-3.95M-8.44M-5.51M-17.43M-34.13M
Financing Cash Flow-24.97M-11.81M-24.47M-71.62M28.85M21.00M

Superior Group of Companies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.98
Price Trends
50DMA
11.15
Positive
100DMA
10.53
Positive
200DMA
10.33
Positive
Market Momentum
MACD
0.49
Negative
RSI
67.48
Neutral
STOCH
89.09
Negative
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 11.89, below the 50-day MA of 11.15, and below the 200-day MA of 10.33, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 67.48 is Neutral, neither overbought nor oversold. The STOCH value of 89.09 is Negative, 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 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$199.96M22.734.45%5.74%1.07%27.61%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
$43.18M24.302.86%6.75%10.48%
54
Neutral
$73.79M-1.90-16.70%-10.95%80.36%
53
Neutral
$106.66M-4.01-18.27%1.35%15.21%-6.88%
52
Neutral
$56.66M9.2013.43%2.23%
46
Neutral
$39.25M-5.44-13.33%-6.24%54.60%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGC
Superior Group of Companies
13.35
3.87
40.76%
LAKE
Lakeland Industries
10.55
-7.44
-41.37%
UFI
Unifi
4.06
-0.86
-17.48%
VNCE
Vince Holding
4.50
2.94
188.46%
CULP
Culp
3.15
-1.05
-25.00%
JRSH
Jerash Holdings (US)
3.44
0.47
15.82%

Superior Group of Companies Corporate Events

Executive/Board Changes
Superior Group Extends CEO Michael Benstock’s Employment Agreement
Positive
May 29, 2026
On May 26, 2026, Superior Group of Companies, Inc. entered into a new employment agreement with Chief Executive Officer Michael Benstock, extending his term through May 31, 2029 and maintaining him in the top leadership role. The contract sets an ...
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.Date of analysis: May 30, 2026