Somnigroup International (SGI) AI Stock Analysis

• Market Cap: $18.44B
• Dividend Yield: 0.67%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 57.3
• Beta (1Y): 0.99
• 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: 1,264,059
• 30 Day Avg. Volume: 1,085,006
• 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: 1.41
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 9.01
• Enterprise Value/Ebitda: 30.30
• 1Y Price Target: $98.60
• Price Target Upside: 7.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $101.00 ▲(10.37% Upside)

The score is driven primarily by solid financial fundamentals (revenue and free-cash-flow growth plus improved leverage) and a positive earnings-call outlook with strong results and synergy benefits. These are tempered by weakening profitability/ROE and a rich valuation (high P/E, low yield), while technicals are supportive but not strongly oversold/overbought.

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

Solid top-line and cash generation: revenue is up 13.7% (TTM) and free cash flow grew 20.7%. Balance sheet leverage improved materially (debt-to-equity down to 2.41). Offsetting this, profitability weakened (net margin down to 4.47% TTM) and ROE fell to 15.97%, indicating reduced efficiency and margin pressure.

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: Positive
• Last Price: 91.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGI, the sentiment is Positive. The current price of 91.51 is below the 20-day moving average (MA) of 91.90, above the 50-day MA of 90.95, and above the 200-day MA of 78.91, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 24.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGI.

Somnigroup International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHD	73 Outperform	$23.11B	31.87	17.62%	1.38%	1.45%	42.04%
SGI	69 Neutral	$18.44B	57.29	17.76%	0.67%	39.29%	-30.44%
KVUE	66 Neutral	$33.34B	23.39	13.47%	4.85%	-2.94%	34.54%
CL	65 Neutral	$72.78B	34.33	1602.26%	2.67%	-0.05%	2.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KMB	61 Neutral	$33.18B	16.49	147.22%	5.03%	-10.04%	-23.41%
CLX	59 Neutral	$13.76B	17.68	4163.16%	5.05%	-9.35%	123.06%

Somnigroup International Corporate Events

Somnigroup International advances due diligence on Leggett & Platt bid

On January 20, 2026, Somnigroup International announced that Leggett & Platt’s board had authorized discussions and signed a customary non-disclosure agreement to allow due diligence on Somnigroup’s previously disclosed all-stock proposal. Somnigroup reaffirmed its December 1, 2025 offer to acquire Leggett & Platt at an implied value of $12 per share, representing a 30% premium to Leggett & Platt’s unaffected 30‑day average share price, and said it would not revise the proposal prior to completion of due diligence. The company stressed that there is no assurance a definitive agreement will be reached or that any transaction will be completed, noting that any deal would require Leggett & Platt shareholder and regulatory approvals but would not be subject to financing contingencies or approval by Somnigroup’s shareholders, a structure that could streamline execution if negotiations succeed. Somnigroup has engaged Goldman Sachs as financial adviser and Cleary Gottlieb as legal counsel, underscoring the seriousness of its pursuit as it seeks a combination it says would create long-term value for investors in both companies.

The most recent analyst rating on (SGI) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.

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.

The most recent analyst rating on (SGI) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.

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.

The most recent analyst rating on (SGI) stock is a Hold with a $84.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.