Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $153.11M
• Dividend Yield: 5.85%
• Average Volume (3M): 44.55K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.10
• Revenue Growth: 4.02%
• EPS Growth: -24.80%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.10
• Shares Outstanding: 15,982,636
• 10 Day Avg. Volume: 40,673
• 30 Day Avg. Volume: 44,554
• 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: 1.61
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: 11.14
• 1Y Price Target: $17.00
• Price Target Upside: 77.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $12.00 ▲(25.26% Upside)

Superior Group of Companies demonstrates strong revenue growth and cash flow management, with notable performance in key segments. However, profitability pressures and challenges in certain segments, such as the Contact Center, weigh on the overall score. The stock's valuation is attractive, supported by a reasonable P/E ratio and a high dividend yield.

Positive Factors

Market Share

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 related to economic uncertainty continued throughout Q1/25, with decision-making slowing further recently due to uncertainty about tariffs.

Earnings

Q1/25 EBITDA declined -63.2% YOY to $3.5 million, lower than analyst estimates and driven primarily by a 300 basis point contraction in gross margin.

Superior Group of Companies Business Overview & Revenue Model

Company Description

Superior Group of Companies (SGC) is a diversified holding company operating in several sectors, including uniform and apparel solutions, call center operations, and promotional products. The company is known for its high-quality uniforms, corporate identity apparel, and related products, serving a wide array of industries such as healthcare, hospitality, and industrial sectors. SGC also provides customer contact management solutions and offers creative promotional products aimed at enhancing brand visibility for its clients.

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	576.24M	565.68M	543.30M	578.83M	536.99M	526.70M
Gross Profit	164.95M	220.58M	203.55M	193.36M	186.01M	188.76M
EBITDA	22.19M	33.84M	33.48M	-20.14M	43.64M	61.59M
Net Income	8.29M	12.00M	8.77M	-31.97M	29.44M	41.03M
Balance Sheet
Total Assets	423.26M	415.13M	422.45M	456.94M	470.25M	393.92M
Cash, Cash Equivalents and Short-Term Investments	21.03M	18.77M	19.90M	17.72M	8.94M	5.17M
Total Debt	108.06M	101.09M	110.52M	162.39M	119.86M	89.26M
Total Liabilities	231.18M	216.28M	224.81M	264.34M	243.25M	202.29M
Stockholders Equity	192.08M	198.86M	197.64M	192.60M	226.99M	191.63M
Cash Flow
Free Cash Flow	14.90M	28.99M	73.97M	-13.62M	-616.00K	29.50M
Operating Cash Flow	20.07M	33.43M	78.93M	-2.60M	17.08M	41.36M
Investing Cash Flow	-9.18M	-8.44M	-5.51M	-17.43M	-34.13M	-6.57M
Financing Cash Flow	-3.52M	-24.47M	-71.62M	28.85M	21.00M	-38.44M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.58
• 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 9.58 is below the 20-day moving average (MA) of 10.57, below the 50-day MA of 10.37, and below the 200-day MA of 12.79, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 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
SGC	66 Neutral	$153.11M	19.33	4.22%	5.85%	4.02%	-24.80%
JRSH	62 Neutral	$41.66M	―	-1.33%	6.10%	24.43%	57.78%
Sector *	61 Neutral	$16.54B	10.12	-9.01%	3.34%	1.45%	-22.43%
CULP	54 Neutral	$54.38M	―	-28.56%	―	-5.37%	-37.39%
LAKE	51 Neutral	$134.06M	―	-17.61%	0.90%	34.28%	-495.11%
UFI	48 Neutral	$84.28M	―	-15.73%	―	2.51%	32.95%
VNCE	47 Neutral	$20.04M	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.