Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $175.17M
• Dividend Yield: 5.11%
• Average Volume (3M): 49.39K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.06
• Revenue Growth: 2.28%
• EPS Growth: -37.96%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.05
• Shares Outstanding: 15,982,636
• 10 Day Avg. Volume: 36,724
• 30 Day Avg. Volume: 49,391
• PEG Ratio: -0.59
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $16.25
• Price Target Upside: 51.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $11.00 ▲(2.80%Upside)

The overall stock score reflects a balanced view of Superior Group of Companies. Financial stability and attractive dividend yield are significant strengths. The stock faces profitability challenges and bearish technical trends. Earnings call insights reveal mixed sentiment with notable strategic initiatives. The investor should weigh these factors carefully within the context of their portfolio strategy.

Positive Factors

Dividend Yield

The current annualized dividend of $0.56 per share offers a compelling 5.8% annualized dividend yield.

Market Share Growth

Superior's Branded Products segment continues to gain market share during economic uncertainty due to its strong balance sheet and aggressive approach to the market.

Revenue Growth

The new business pipeline for Superior’s Branded Products segment is at record levels, positioning the business for solid revenue growth when economic headwinds subside.

Negative Factors

Customer Hesitancy

Customer hesitancy to move forward with orders and new business persists due to economic uncertainty, slowing decision-making further.

EBITDA Decline

Q1/25 EBITDA declined -63.2% YOY to $3.5 million, lower than analyst estimates and consensus.

Gross Margin Contraction

Q1/25 EBITDA declined -63.2% YOY, driven primarily by a 300 basis point contraction in gross margin to 36.8%.

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 its revenue through multiple streams. The primary revenue stream comes from its uniform and apparel segment, where it designs, manufactures, and distributes a wide range of uniforms and corporate identity apparel to businesses in various industries. Another significant source of revenue is its call center operations segment, which offers inbound and outbound customer engagement solutions for a diverse client base. Additionally, the promotional products segment contributes to its earnings by providing customized promotional merchandise that helps businesses enhance their brand recognition. Strategic partnerships and long-term client relationships play a crucial role in sustaining and growing these revenue streams.

Superior Group of Companies Financial Statement Overview

Summary

Superior Group of Companies demonstrates stability in revenue generation and cash flow management. However, profitability pressures are evident with declining net and EBIT margins. The balance sheet shows improved leverage but reduced equity returns. Cash flow metrics highlight strong operational cash generation despite fluctuating free cash flow.

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	563.93M	565.68M	543.30M	578.83M	536.99M	526.70M
Gross Profit	215.70M	220.58M	203.55M	193.36M	186.01M	188.76M
EBITDA	27.75M	33.84M	33.48M	-20.14M	43.64M	61.59M
Net Income	7.33M	12.00M	8.77M	-31.97M	29.44M	41.03M
Balance Sheet
Total Assets	410.97M	415.13M	422.45M	456.94M	470.25M	393.92M
Cash, Cash Equivalents and Short-Term Investments	19.76M	18.77M	19.90M	17.72M	8.94M	5.17M
Total Debt	105.36M	101.09M	110.52M	162.39M	119.86M	89.26M
Total Liabilities	216.54M	216.28M	224.81M	264.34M	243.25M	202.29M
Stockholders Equity	194.43M	198.86M	197.64M	192.60M	226.99M	191.63M
Cash Flow
Free Cash Flow	17.10M	28.99M	73.97M	-13.62M	-616.00K	29.50M
Operating Cash Flow	21.99M	33.43M	78.93M	-2.60M	17.08M	41.36M
Investing Cash Flow	-8.89M	-8.44M	-5.51M	-17.43M	-34.13M	-6.57M
Financing Cash Flow	-14.47M	-24.47M	-71.62M	28.85M	21.00M	-38.44M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGC, the sentiment is Neutral. The current price of 10.7 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 10.26, and below the 200-day MA of 13.13, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 53.81 is Neutral, neither overbought nor oversold. The STOCH value of 67.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	$42.04M	―	-1.33%	6.04%	24.43%	57.78%
Sector *	63 Neutral	$16.85B	11.30	-7.01%	2.93%	1.72%	-24.85%
SGC	60 Neutral	$175.17M	24.78	3.71%	5.11%	2.28%	-37.96%
UFI	55 Neutral	$88.68M	―	-15.73%	―	2.51%	32.95%
CULP	53 Neutral	$57.40M	―	-28.56%	―	-5.37%	-37.39%
LAKE	51 Neutral	$136.15M	―	-17.61%	0.84%	34.28%	-495.11%
VNCE	45 Neutral	$20.17M	6.22	-63.56%	―	1.46%	-191.66%

Superior Group of Companies Corporate Events

Superior Group Initiates Stock Repurchase Plan

On June 19, 2025, Superior Group of Companies, Inc. announced the implementation of a 10b5-1 trading plan to repurchase a specified number of its outstanding common stock shares. This plan, which begins on June 20, 2025, is part of a previously authorized share repurchase program and is designed to comply with regulatory requirements under the Securities Exchange Act of 1934. The repurchase will be managed by an independent broker and is subject to various constraints, potentially impacting the company’s stock market operations and shareholder value.

The most recent analyst rating on (SGC) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Superior Group of Companies stock, see the SGC Stock Forecast page.