Somnigroup International (SGI) AI Stock Analysis

• Market Cap: $18.68B
• Dividend Yield: 0.66%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 58.0
• Beta (1Y): 0.98
• Revenue Growth: 39.29%
• EPS Growth: -30.44%
• Country: US
• Employees: 12,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Household & Personal Products
• EPS (TTM): 0.95
• Shares Outstanding: 209,907,670
• 10 Day Avg. Volume: 1,689,112
• 30 Day Avg. Volume: 1,760,265
• PEG Ratio: 7.83
• Price to Book (P/B): 17.61
• Price to Sales (P/S): 2.00
• P/FCF Ratio: 17.29
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 7.35
• Enterprise Value/Ebitda: 24.72
• 1Y Price Target: $98.60
• Price Target Upside: 9.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $101.00 ▲(12.27% Upside)

Somnigroup International's overall score is driven by strong technical indicators and positive earnings call sentiment. Financial performance shows growth but is offset by declining margins. The high P/E ratio suggests overvaluation, while corporate events are strategically positive.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective sales strategies, enhancing long-term financial stability.

Strategic Acquisition

The acquisition proposal could expand market reach and product offerings, potentially driving future growth and competitive positioning.

Cash Generation

Strong cash generation enhances financial flexibility, supporting investment in growth initiatives and providing a buffer against economic downturns.

Negative Factors

Declining Profit Margins

Falling profit margins suggest operational inefficiencies, which could impact long-term profitability and shareholder returns.

Competitive International Marketplace

Increased competition internationally may pressure margins and limit growth opportunities, challenging the company's global expansion efforts.

Flat U.S. Bedding Market

A stagnant U.S. market could hinder revenue growth, requiring strategic adjustments to capture new opportunities and sustain performance.

Somnigroup International Business Overview & Revenue Model

Company Description

Somni is a company specializing in sleep technology and wellness solutions, developing innovative products to enhance sleep quality. The company integrates science-backed methods, smart technology, and data-driven insights to improve sleep patterns and overall well-being.

How the Company Makes Money

Somnigroup International generates revenue through multiple streams, primarily by selling its flagship sleep technology products, which include wearable sleep trackers, smart pillows, and sleep optimization software. Additionally, SGI offers subscription-based services for personalized sleep coaching and access to an exclusive app that provides tailored sleep improvement plans. The company has established significant partnerships with healthcare providers and wellness organizations, enabling them to reach a broader audience and integrate their products into clinical settings. Moreover, SGI earns revenue through licensing agreements with other companies in the health and wellness industry, allowing them to utilize SGI's proprietary technology and research in their own products.

Somnigroup International Financial Statement Overview

Summary

Somnigroup International shows solid revenue growth and improved debt management, enhancing financial stability. However, declining profit margins and return on equity indicate potential operational inefficiencies. Strong cash flow generation provides a buffer against these challenges, supporting overall financial health.

Income Statement

Somnigroup International has demonstrated strong revenue growth with a 13.7% increase in TTM, indicating a positive trajectory. However, the net profit margin has decreased from 7.79% in 2024 to 4.47% in TTM, suggesting declining profitability. The gross profit margin remains stable at around 42%, but the EBIT and EBITDA margins have also decreased, reflecting potential operational challenges.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio from 7.99 in 2024 to 2.41 in TTM, showing improved financial stability. However, the return on equity has decreased to 15.97% in TTM from 68.75% in 2024, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio has improved, suggesting better asset management.

Cash Flow

Free cash flow has grown by 20.7% in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is at 0.40, suggesting moderate cash flow efficiency. The free cash flow to net income ratio remains high at 0.86, reflecting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.82B	4.93B	4.93B	4.92B	4.93B	3.68B
Gross Profit	2.88B	2.18B	2.13B	2.05B	2.16B	1.64B
EBITDA	857.90M	804.20M	739.30M	807.30M	1.00B	627.40M
Net Income	315.20M	384.30M	368.10M	455.70M	624.50M	348.80M
Balance Sheet
Total Assets	11.40B	5.98B	4.55B	4.36B	4.32B	3.31B
Cash, Cash Equivalents and Short-Term Investments	100.20M	117.40M	74.90M	69.40M	300.70M	65.00M
Total Debt	6.62B	4.47B	3.27B	3.37B	2.86B	1.70B
Total Liabilities	8.41B	5.41B	4.22B	4.37B	4.03B	2.80B
Stockholders Equity	2.99B	559.00M	323.40M	-22.10M	285.80M	503.60M
Cash Flow
Free Cash Flow	700.30M	569.20M	384.90M	72.30M	599.80M	543.40M
Operating Cash Flow	829.80M	666.50M	570.30M	378.80M	723.10M	654.70M
Investing Cash Flow	-2.97B	-96.70M	-187.80M	-315.60M	-555.70M	-146.30M
Financing Cash Flow	2.12B	1.08B	-384.30M	-279.10M	76.50M	-522.60M

Somnigroup International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 89.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGI, the sentiment is Neutral. The current price of 89.96 is below the 20-day moving average (MA) of 90.73, above the 50-day MA of 87.19, and above the 200-day MA of 73.96, indicating a neutral trend. The MACD of 1.14 indicates Positive momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 14.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SGI.

Somnigroup International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KVUE	73 Outperform	$33.11B	23.23	13.47%	4.82%	-2.94%	34.54%
SGI	72 Outperform	$18.68B	58.03	16.47%	0.66%	39.29%	-30.44%
CHD	72 Outperform	$20.78B	27.24	18.59%	1.36%	1.45%	42.04%
CL	63 Neutral	$64.27B	22.34	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$34.16B	17.44	136.87%	4.97%	-10.04%	-23.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CLX	55 Neutral	$12.38B	15.91	4163.16%	4.95%	-9.35%	123.06%

Somnigroup International Corporate Events

Somnigroup Proposes Acquisition of Leggett & Platt

On December 1, 2025, Somnigroup International Inc. announced a proposal to acquire Leggett & Platt in an all-stock transaction, offering a 30.3% premium to Leggett & Platt’s average closing price over the last 30 trading days. This acquisition aims to provide significant value to Leggett & Platt shareholders and enhance the growth potential of the combined company, with Leggett & Platt continuing to operate independently under Somnigroup’s umbrella.

Somnigroup International Unveils Strategic Initiatives Update

On November 6, 2025, Somnigroup International Inc. released an updated investor presentation, highlighting its strategic initiatives and market positioning. The company aims to expand its market share and enhance its consumer experience through continuous innovation and operational efficiencies. The presentation also outlined the impact of tariff-related pricing adjustments expected to affect sales in North America, with further price increases anticipated in early 2026.

Somnigroup Appoints Christopher T. Cook as Director

On September 30, 2025, Somnigroup International Inc. announced the appointment of Christopher T. Cook as an independent director, expanding its Board of Directors from seven to eight members. Mr. Cook, a seasoned retail entrepreneur with over 20 years of leadership experience, is expected to bring valuable insights from his previous roles, including his tenure at Mattress Firm, to support Somnigroup’s long-term value creation strategy.