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Somnigroup International (SGI)
NYSE:SGI

Somnigroup International (SGI) AI Stock Analysis

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SGI

Somnigroup International

(NYSE:SGI)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
$101.00
▲(10.87% 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.

Somnigroup International (SGI) vs. SPDR S&P 500 ETF (SPY)

Somnigroup International Business Overview & Revenue Model

Company DescriptionSomni 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 MoneySomnigroup 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 Earnings Call Summary

Earnings Call Date:Nov 06, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Somnigroup, highlighted by record financial metrics and successful synergy realization from the Mattress Firm acquisition. However, challenges remain in the U.S. bedding market and competitive international environments. Despite these lowlights, the highlights significantly outweigh the challenges, indicating a positive sentiment.
Q3-2025 Updates
Positive Updates
Record Financial Performance
Somnigroup achieved record net sales of $2.1 billion, up approximately 63%, adjusted EBITDA of $419 million, up approximately 52%, and adjusted EPS of $0.95 per share, up approximately 16% compared to the previous year.
Strong International Sales Growth
Tempur International sales grew 11% in the quarter, driven by a refreshed product lineup, expanded distribution, and strong local execution.
Successful Synergy Realization
Synergies from the Mattress Firm combination are ahead of expectations, contributing to $60 million of adjusted EBITDA benefit in 2025, with an incremental $40 million expected in 2026.
Mattress Firm Outperformance
Mattress Firm reported strong same-store sales growth of 5% in the quarter, driven by superior in-store execution and a refreshed customer experience.
Negative Updates
Flat U.S. Bedding Market
The U.S. bedding market remains flat from a sales perspective and is still at trough levels, with the housing market yet to recover.
Decline in North American Direct Channel
Like-for-like net sales through the direct channel in North America declined 4% in the third quarter.
Competitive International Marketplace
International gross margins declined 40 basis points due to a competitive U.K. marketplace.
Company Guidance
During the Somnigroup Third Quarter 2025 earnings call, significant performance metrics and guidance were highlighted. The company achieved record net sales of $2.1 billion, marking a 63% increase, and adjusted EBITDA rose by 52% to $419 million. The adjusted EPS increased by 16% to $0.95 per share. The company's like-for-like sales growth was 5%, driven by strong international operations. Tempur Sealy North America reported a 5% like-for-like sales growth, attributed to new product launches and a $110 million advertising investment. Mattress Firm reported a 5% same-store sales growth, supported by improved in-store execution. Somnigroup is also on track to achieve $100 million in annual run rate net cost synergies by 2027, with an anticipated $60 million EBITDA benefit from sales synergies in 2025. For 2025, Somnigroup revised its adjusted EPS guidance to $2.60-$2.75, with expected sales of approximately $7.5 billion.

Somnigroup International Financial Statement Overview

Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Somnigroup International Technical Analysis

Technical Analysis Sentiment
Positive
Last Price91.10
Price Trends
50DMA
86.99
Positive
100DMA
84.13
Positive
200DMA
73.68
Positive
Market Momentum
MACD
1.68
Positive
RSI
53.59
Neutral
STOCH
50.06
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 91.1 is above the 20-day moving average (MA) of 90.20, above the 50-day MA of 86.99, and above the 200-day MA of 73.68, indicating a bullish trend. The MACD of 1.68 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.06 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

Overall Rating
UnderperformOutperform
Sector (―)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$33.05B23.1913.47%4.78%-2.94%34.54%
72
Outperform
$19.12B59.4116.47%0.66%39.29%-30.44%
72
Outperform
$20.30B26.6218.59%1.40%1.45%42.04%
63
Neutral
$63.64B22.12450.35%2.67%-0.05%2.49%
63
Neutral
$34.03B17.37136.87%4.92%-10.04%-23.41%
55
Neutral
$12.18B15.644163.16%4.93%-9.35%123.06%
* Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGI
Somnigroup International
88.98
34.37
62.94%
CHD
Church & Dwight
86.52
-18.02
-17.24%
CLX
Clorox
101.52
-54.35
-34.87%
CL
Colgate-Palmolive
79.73
-10.83
-11.96%
KMB
Kimberly Clark
102.94
-22.30
-17.81%
KVUE
Kenvue, Inc.
17.28
-3.37
-16.32%

Somnigroup International Corporate Events

M&A Transactions
Somnigroup Proposes Acquisition of Leggett & Platt
Positive
Dec 1, 2025

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.

Business Operations and Strategy
Somnigroup International Unveils Strategic Initiatives Update
Neutral
Nov 6, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Somnigroup Appoints Christopher T. Cook as Director
Positive
Sep 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025