Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $160.97M
• Dividend Yield: 5.56%
• Average Volume (3M): 60.39K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.18
• Revenue Growth: -0.44%
• EPS Growth: -55.22%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.18
• Shares Outstanding: 15,968,792
• 10 Day Avg. Volume: 57,958
• 30 Day Avg. Volume: 60,393
• 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: 1.60
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 10.57
• 1Y Price Target: $16.00
• Price Target Upside: 56.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.44
• Revenue Forecast (FY): $564.40M

• Rating: 66 Neutral
• Price Target: $10.50 ▲(2.94% 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 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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 10.20
• 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 10.2 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 9.62, and below the 200-day MA of 10.46, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.43 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
SGC	66 Neutral	$160.97M	27.68	2.86%	5.56%	-0.44%	-55.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VNCE	59 Neutral	$42.41M	―	-33.24%	―	-0.49%	-1427.68%
JRSH	56 Neutral	$41.53M	50.39	0.99%	6.46%	12.25%	―
UFI	44 Neutral	$63.16M	―	-9.61%	―	-5.26%	42.84%
LAKE	42 Neutral	$143.65M	―	-28.97%	1.31%	39.13%	-1186.47%
CULP	41 Neutral	$50.55M	-4.16	-18.32%	―	-7.76%	49.20%

Superior Group of Companies Corporate Events

Superior Group Initiates Share Repurchase Plan

On September 19, 2025, Superior Group of Companies, Inc. initiated a 10b5-1 trading plan to repurchase shares of its outstanding common stock. This plan, part of a previously authorized share repurchase program, allows the company to buy back shares starting September 20, 2025, until the repurchase limit is reached or other specified events occur. The repurchases will be managed by an independent broker and are subject to certain constraints, potentially impacting the company’s stock market presence and shareholder value.

Superior Group Appoints Michael Koempel as President

On September 12, 2025, Superior Group of Companies appointed Michael W. Koempel as President, while he continues as CFO. Koempel’s promotion reflects his significant contributions to the company’s financial and operational excellence, with segment presidents now reporting to him. His leadership is expected to drive strategic growth and shareholder value.