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Superior Group of Companies (SGC)
NASDAQ:SGC
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Superior Group of Companies
(NASDAQ:SGC)
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Rating:66Neutral
Price Target:
$10.50
▲(5.32% Upside)
Superior Group of Companies' overall stock score of 66 reflects a combination of financial challenges, moderate technical strength, and mixed valuation. The earnings call and recent corporate event provide some positive outlook, but the company must address revenue declines and profitability issues to improve its financial health.
Positive Factors
Leadership Change
The appointment of Michael Koempel as President is expected to drive strategic growth and enhance shareholder value, reflecting strong leadership.
Cost Management
Significant cost reductions demonstrate effective expense management, which can improve profitability and provide financial flexibility.
Strong Pipeline
A strong pipeline and order backlog indicate potential for future revenue growth, supporting long-term business stability and expansion.
Negative Factors
Revenue Decline
Declining revenues in major segments highlight challenges in maintaining sales momentum, potentially impacting long-term growth prospects.
Gross Margin Reduction
Reduced gross margins indicate increased cost pressures, which can affect profitability and competitiveness over time.
Cash Flow Challenges
Weak cash flow generation limits the company's ability to invest in growth opportunities and manage financial obligations effectively.
Superior Group of Companies (SGC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$151.86M
Dividend Yield5.74%
Average Volume (3M)58.95K
Price to Earnings (P/E)26.1
Beta (1Y)1.19
Revenue Growth-0.44%
EPS Growth-55.22%
CountryUS
Employees7,100
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.18
Shares Outstanding15,968,792
10 Day Avg. Volume78,479
30 Day Avg. Volume58,954
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)1.33
Price to Sales (P/S)0.47
P/FCF Ratio9.13
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit1.20
Enterprise Value/Ebitda10.45
Forecast
1Y Price Target
$16.00Price Target Upside60.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Superior Group of Companies Business Overview & Revenue Model
Company DescriptionSuperior 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 MoneySGC 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 Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted both positive and negative aspects. While there were significant cost reductions and a healthy balance sheet, major segments experienced revenue declines, and overall net income decreased compared to the previous year. The sentiment reflects a cautious optimism with strong pipelines and strategic investments but acknowledges the challenges posed by economic uncertainties.Q3-2025 Updates
Positive Updates
Sequential Improvement in Earnings
The third quarter earnings were solid and came in as expected, with sequential improvement from the second quarter.
SG&A Expense Reduction
SG&A expenses were reduced by 7% or $3.9 million, with improvements realized across all three segments.
Increase in Consolidated Revenues
Third quarter consolidated revenues were $138 million, up 7% relative to the year-earlier period.
Strong Pipeline and Order Backlog
Despite challenges, the Branded Products segment showed an increase in combined second and third quarter revenue compared to last year, supported by a stronger pipeline and order backlog.
Healthy Balance Sheet
Maintained a strong cash and cash equivalents balance of $17 million, with over $100 million of liquidity available for growth plans.
Price Increases to Offset Tariffs
Successfully implemented price increases in the healthcare segment starting in July and August to largely offset tariff impacts.
Negative Updates
Revenue Decline in Major Segments
Branded Products revenue declined by 8%, Healthcare Apparel saw a 5% decline, and Contact Center revenue declined 9% relative to the third quarter of 2024.
Gross Margin Reduction
Consolidated gross margin of 38.3% was down from a peak of 40.4% in the year-ago quarter.
Net Income Decrease
Net income of $2.7 million, down from $5.4 million in the strong year-ago quarter, equating to earnings per diluted share of $0.18 compared to $0.33 in the third quarter of 2024.
Economic Uncertainty
Significant level of uncertainty and caution among customers, affecting all business segments and leading to elongated decision-making.
Company Guidance
In the recent earnings call, Superior Group of Companies provided detailed guidance on their financial performance and outlook for the fiscal year. The company reported consolidated third-quarter revenues of $138 million, marking a 7% increase compared to the same period last year. Despite a 7% decline in consolidated revenue year-over-year, the company successfully reduced SG&A expenses by 7%, amounting to $3.9 million in savings. The Branded Products segment experienced an 8% revenue decline, while Healthcare Apparel saw a 5% decline, and Contact Centers experienced a 9% decline. The company's gross margin stood at 38.3%, down from 40.4% in the prior year, but consistent with the previous quarter. EBITDA for the third quarter was $7.5 million, up from $6.1 million sequentially, yet down from $11.7 million year-over-year. Additionally, the company improved its net interest expense, reducing it to $1.4 million from $1.6 million the previous year. Superior Group also adjusted its full-year revenue outlook to a range of $560 million to $570 million, reflecting a higher midpoint due to strong performance and robust pipelines across its business segments. The guidance emphasized the company's focus on converting strong pipelines into sales, maintaining expense discipline, and leveraging recent cost reductions to drive future growth as the economic environment stabilizes.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Negative
9.97
Price Trends
9.72
Negative
10.01
Negative
10.24
Negative
Market Momentum
>-0.01
Positive
42.89
Neutral
35.70
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 9.97 is above the 20-day moving average (MA) of 9.84, above the 50-day MA of 9.72, and below the 200-day MA of 10.24, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 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 Risk Analysis
Superior Group of Companies disclosed 35 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $151.86M | 26.12 | 2.86% | 5.74% | -0.44% | -55.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $39.24M | 65.19 | 0.99% | 6.75% | 12.25% | ― | |
46 Neutral | $35.88M | -1.90 | -33.24% | ― | 2.58% | -502.04% | |
45 Neutral | $88.55M | -2.08 | -28.97% | 1.35% | 27.42% | -5275.12% | |
44 Neutral | $72.34M | -2.94 | -9.61% | ― | -5.26% | 42.84% | |
41 Neutral | $47.11M | -4.29 | -18.32% | ― | -7.76% | 49.20% |
* Consumer Cyclical Sector Average
SGC
Superior Group of Companies
9.97
-4.94
-33.13%
LAKE
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9.25
-14.87
-61.65%
UFI
Unifi
3.94
-2.22
-36.04%
VNCE
Vince Holding
2.81
-0.72
-20.40%
CULP
Culp
3.66
-1.57
-30.02%
JRSH
Jerash Holdings (US)
3.07
-0.20
-6.12%
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.