Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $209.34M
• Dividend Yield: 4.27%
• Average Volume (3M): 45.65K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.14
• Revenue Growth: 4.02%
• EPS Growth: -24.80%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.10
• Shares Outstanding: 15,968,292
• 10 Day Avg. Volume: 45,745
• 30 Day Avg. Volume: 45,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 8.75
• 1Y Price Target: $16.00
• Price Target Upside: 18.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $14.00 ▲(3.63% Upside)

The overall stock score is driven by a positive earnings call and strong technical indicators, suggesting bullish momentum. Financial performance is stable but hindered by profitability and cash flow challenges. Valuation concerns due to a high P/E ratio are offset by a solid dividend yield.

Positive Factors

Investment Potential

The SGC shares trade at 5.9 times Enterprise Value to the 2026 adj. EBITDA estimate, below the peer group weighted average, offering shareholders an attractive total return potential.

Market Position

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

Q2/25 revenue grew 9.3% YOY to $144.0 million, above the estimate of $135.8 million and the consensus of $133.0 million.

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.

EBITDA Decline

Q1/25 EBITDA declined -63.2% YOY to $3.5 million, lower than the estimate of $6.9 million and the consensus of $7.1 million.

Gross Margin Decline

Q1/25 EBITDA declined -63.2% YOY to $3.5 million, 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 (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 shows stable revenue generation and strong cash flow management. However, profitability pressures are evident with declining net and EBIT margins. The balance sheet shows improved leverage but reduced equity returns.

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	220.27M	220.58M	203.55M	193.36M	186.01M	188.76M
EBITDA	28.25M	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	112.74M	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: Positive
• Last Price: 13.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.51 is above the 20-day moving average (MA) of 11.70, above the 50-day MA of 10.97, and above the 200-day MA of 12.46, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 68.99 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGC	71 Outperform	$209.34M	25.12	4.22%	4.27%	4.02%	-24.80%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
LAKE	55 Neutral	$147.19M	―	-17.61%	0.78%	34.28%	-495.11%
JRSH	52 Neutral	$42.29M	51.23	1.30%	6.00%	17.12%	―
CULP	51 Neutral	$53.63M	―	-28.56%	―	-5.37%	-37.39%
VNCE	47 Neutral	$18.63M	6.22	-63.56%	―	1.46%	-191.66%
UFI	42 Neutral	$81.89M	―	-7.94%	―	-1.87%	57.41%

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.