Somnigroup International (SGI) AI Stock Analysis

• Market Cap: $16.81B
• Dividend Yield: 0.57%
• Average Volume (3M): 1.76M
• Price to Earnings (P/E): 56.1
• Beta (1Y): 1.05
• 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: 209,888,100
• 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: 1.26
• Enterprise Value/Revenue: 3.11
• Enterprise Value/Gross Profit: 7.35
• Enterprise Value/Ebitda: 24.72
• 1Y Price Target: $100.80
• Price Target Upside: 10.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $97.00 ▲(6.30% Upside)

Somnigroup International's overall stock score is driven by strong earnings call performance and solid financial stability, despite operational inefficiencies and high valuation concerns. Technical indicators suggest a positive trend, but caution is advised due to potential overvaluation and market challenges.

Positive Factors

Revenue Growth

The significant increase in net sales reflects strong market demand and effective sales strategies, indicating robust revenue growth potential.

Synergy Realization

Successful synergy realization enhances operational efficiency and cost savings, strengthening long-term profitability and competitive positioning.

International Sales Growth

Strong international sales growth indicates successful global expansion and diversification, reducing reliance on any single market.

Negative Factors

Declining Profit Margins

Declining profit margins suggest potential operational inefficiencies, which could impact long-term profitability if not addressed.

Competitive International Marketplace

Increased competition in international markets may pressure margins and require strategic adjustments to maintain market share.

Flat U.S. Bedding Market

A stagnant U.S. bedding market could limit growth opportunities domestically, necessitating a focus on innovation and market differentiation.

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

SGI generates revenue through multiple streams. The primary source of income comes from the sale of its smart sleep tracking devices and accessories, which are marketed directly to consumers via online platforms and retail partnerships. Additionally, SGI offers subscription-based services for its sleep-enhancing applications, providing users with personalized insights, coaching, and access to premium content. The company also collaborates with healthcare providers and organizations to integrate its technology into clinical settings, creating additional revenue through partnerships and licensing agreements. Furthermore, SGI invests in research and development to innovate new products, which helps maintain its competitive edge and attract new customers.

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	2.11B	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	-315.30M	-554.80M	-146.60M
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: 91.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 91.25 is above the 20-day moving average (MA) of 83.62, above the 50-day MA of 84.16, and above the 200-day MA of 70.42, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 69.96 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 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
IPAR	68 Neutral	$2.81B	17.15	19.95%	3.59%	3.12%	9.01%
HIMS	68 Neutral	$9.45B	75.86	26.21%	―	78.02%	28.15%
SGI	67 Neutral	$16.81B	56.10	16.47%	0.57%	39.29%	-30.44%
ELF	65 Neutral	$4.34B	52.28	8.77%	―	13.80%	-25.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
EL	61 Neutral	$31.63B	―	-20.73%	1.43%	-6.36%	-554.84%
COTY	45 Neutral	$3.28B	―	-9.96%	―	-5.68%	-358.36%

Somnigroup International Corporate Events

Somnigroup International Reports Record Q3 Results

Somnigroup International Inc., a leading global bedding company, specializes in designing, manufacturing, distributing, and retailing sleep solutions, serving consumers in over 100 countries with renowned brands like Tempur-Pedic and Sealy.

Tempur Sealy’s Earnings Call: Record Growth Amid Challenges

Tempur Sealy International’s recent earnings call reflects a robust performance, marked by record financial metrics and successful synergy realization from the Mattress Firm acquisition. Despite challenges in the U.S. bedding market and competitive international environments, the positive highlights significantly outweigh these hurdles, indicating an optimistic sentiment overall.

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.

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.

The most recent analyst rating on (SGI) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.

Somnigroup International Joins 2025 Goldman Sachs Conference

On September 2, 2025, Somnigroup International Inc. announced its participation in the 2025 Goldman Sachs Global Retailing Conference on September 3, 2025, highlighting the continuation of positive sales trends from early in the third quarter. The company’s leadership expressed confidence in leveraging favorable market conditions to enhance its performance, indicating potential positive impacts on its operations and industry standing.

The most recent analyst rating on (SGI) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.

Somnigroup International Appoints New CEO for Subsidiary

On August 14, 2025, Somnigroup International‘s Board of Directors expanded Steven H. Rusing’s role from President to President and Chief Executive Officer of Mattress Firm, a wholly-owned subsidiary. This strategic move, announced on August 18, 2025, aims to enhance leadership agility and operational focus, with Rusing having already positively impacted the company’s direction and strategy since his initial appointment.

The most recent analyst rating on (SGI) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.

Tempur Sealy’s Strong Quarter with Record Sales

Tempur Sealy International’s latest earnings call paints a picture of a company experiencing a strong quarter, marked by record sales and the successful integration of Mattress Firm. Despite facing challenges in the North American market, including slight sales declines and ongoing tariff impacts, the company remains optimistic. International growth continues to be a significant positive, showcasing robust performance.

Somnigroup International Reports Strong Q2 Growth

Somnigroup International Inc., the world’s largest bedding company, specializes in designing, manufacturing, distributing, and retailing sleep solutions across more than 100 countries, with renowned brands like Tempur-Pedic, Sealy, and Mattress Firm under its umbrella.

Somnigroup International Updates Investors on Strategic Initiatives

On August 7, 2025, Somnigroup International Inc. released an updated investor presentation highlighting its strategic initiatives and market positioning. The company, reimagined in February 2025 following the acquisition of Mattress Firm, emphasizes its competitive advantages in the bedding industry, including its strong financial flexibility and seasoned management team. The presentation outlines opportunities for growth through market share gains, product innovation, and operational efficiencies, while addressing tariff impacts and capital allocation strategies.

The most recent analyst rating on (SGI) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on Somnigroup International stock, see the SGI Stock Forecast page.