Signet Jewelers (SIG) AI Stock Analysis

• Market Cap: $3.96B
• Dividend Yield: 1.26%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.18
• Revenue Growth: -1.63%
• EPS Growth: -72.22%
• Country: US
• Employees: 27,595
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.61
• Shares Outstanding: 40,948,860
• 10 Day Avg. Volume: 770,713
• 30 Day Avg. Volume: 1,017,784
• PEG Ratio: -0.41
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 5.96
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 6.62
• 1Y Price Target: $101.17
• Price Target Upside: 4.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: $102.00 ▲(5.43% Upside)

Signet Jewelers' overall stock score reflects a stable financial position with strong cash flow management and positive technical indicators. The recent earnings call highlighted growth in key areas and raised guidance, contributing positively to the score. However, the high P/E ratio suggests potential overvaluation, and challenges in profitability and tariff-related pressures remain concerns.

Positive Factors

Same-Store Sales Growth

Consistent same-store sales growth indicates strong brand performance and customer loyalty, enhancing long-term revenue stability.

Lab-Grown Diamonds Expansion

Expanding into lab-grown diamonds captures consumer interest and diversifies product offerings, supporting future growth.

Cash Flow Management

Strong cash flow management enhances liquidity and supports strategic investments, ensuring operational resilience.

Negative Factors

Revenue Growth Challenges

Volatile revenue growth can hinder long-term planning and investment, impacting overall financial health and market competitiveness.

Tariff-Related Challenges

Increased tariffs can pressure margins and profitability, requiring strategic adjustments to sourcing and pricing strategies.

Profit Margin Decline

Declining profit margins indicate inefficiencies in cost management, potentially affecting long-term profitability and shareholder returns.

Signet Jewelers Business Overview & Revenue Model

Company Description

Signet Jewelers Limited is the world's largest retailer of diamond jewelry, operating a diverse portfolio of well-known brands including Kay Jewelers, Zales, Jared, and James Allen. The company primarily serves the North American market, offering a wide range of products including engagement rings, wedding bands, fine jewelry, and watches. Signet focuses on providing a personalized shopping experience both in-store and online, leveraging its extensive retail network and e-commerce capabilities.

How the Company Makes Money

Signet Jewelers generates revenue primarily through the sale of fine jewelry and watches. Its core revenue streams include in-store sales from its various retail brands, online sales through its e-commerce platforms, and services related to jewelry repair and maintenance. The company benefits from seasonal sales peaks, particularly around holidays and special occasions such as Valentine's Day and Christmas, which significantly boost sales. Additionally, Signet has established partnerships with various diamond suppliers, allowing it to maintain a steady supply of inventory while optimizing its pricing strategies. The company's loyalty programs and financing options also encourage repeat purchases, further contributing to its earnings.

Signet Jewelers Financial Statement Overview

Summary

Signet Jewelers demonstrates a stable financial position with strengths in cash flow management and a balanced capital structure. However, challenges in profitability and revenue growth need to be addressed to enhance overall financial performance. The company should focus on improving net profit margins and shareholder returns to strengthen its financial health further.

Income Statement

Signet Jewelers has shown a mixed performance in its income statement. The TTM data reveals a modest gross profit margin of 39.38%, which is consistent with previous years, indicating stable cost management. However, the net profit margin has decreased to 0.63% in the TTM, reflecting challenges in converting revenue into profit. Revenue growth has been volatile, with a significant drop in the most recent annual report but a slight recovery in the TTM. The EBIT and EBITDA margins are relatively stable, suggesting operational efficiency, but the declining net profit margin is a concern.

Balance Sheet

The balance sheet of Signet Jewelers shows a moderate debt-to-equity ratio of 0.67 in the TTM, indicating a balanced approach to leveraging. The return on equity has decreased to 2.25% in the TTM, which is a significant drop from previous years, suggesting reduced profitability for shareholders. The equity ratio stands at a healthy level, indicating a solid capital structure. Overall, the balance sheet reflects stability but with a need to improve shareholder returns.

Cash Flow

Signet Jewelers' cash flow statement shows a positive trajectory with a free cash flow growth rate of 11.41% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio of 0.71 in the TTM is healthy, reflecting good cash management. Overall, the cash flow position is robust, supporting the company's liquidity and operational needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.78B	6.70B	7.17B	7.84B	7.83B	5.23B
Gross Profit	2.68B	2.63B	2.83B	3.05B	3.12B	1.73B
EBITDA	602.90M	651.20M	789.60M	629.20M	1.06B	118.30M
Net Income	132.00M	61.20M	810.40M	376.70M	769.90M	-15.20M
Balance Sheet
Total Assets	5.34B	5.73B	6.81B	6.62B	6.58B	6.18B
Cash, Cash Equivalents and Short-Term Investments	281.40M	604.00M	1.38B	1.17B	1.42B	1.17B
Total Debt	1.18B	1.18B	1.24B	1.33B	1.45B	1.67B
Total Liabilities	3.61B	3.87B	3.99B	4.39B	4.36B	4.35B
Stockholders Equity	1.73B	1.85B	2.82B	2.23B	2.22B	1.83B
Cash Flow
Free Cash Flow	454.00M	437.90M	421.40M	659.00M	1.13B	1.29B
Operating Cash Flow	616.30M	590.90M	546.90M	797.90M	1.26B	1.37B
Investing Cash Flow	-162.60M	-159.10M	-75.80M	-545.40M	-642.70M	-77.80M
Financing Cash Flow	-580.20M	-1.20B	-259.70M	-490.00M	-366.60M	-498.60M

Signet Jewelers Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 96.75
• 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 SIG, the sentiment is Positive. The current price of 96.75 is above the 20-day moving average (MA) of 92.64, above the 50-day MA of 85.66, and above the 200-day MA of 70.36, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIG.

Signet Jewelers Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIG	75 Outperform	$3.96B	31.96	6.82%	1.26%	-1.63%	-72.22%
ELA	73 Outperform	203.57M	23.90	14.77%	―	25.43%	33.93%
MOV	71 Outperform	302.35M	24.65	3.30%	7.26%	-0.65%	-51.59%
BRLT	66 Neutral	218.46M	-7.77	8941.84%	22.83%	-4.32%	-144.96%
CTHR	45 Neutral	2.35M	-0.14	―	―	-33.51%	36.29%
BGI	41 Neutral	22.34M	-2.42	71.17%	―	-7.08%	-162.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Signet Jewelers Corporate Events

Signet Jewelers Announces New Senior Leadership Appointments

On July 31, 2025, Signet Jewelers announced new senior leadership appointments, naming Julie Yoakum as President of Kay Jewelers and Peoples Jewellers, Stacee Johnson-Williams as Chief Merchandise Operations and Sourcing Officer, and Lisa Laich as Chief Marketing Officer. These appointments are expected to accelerate Signet’s ‘Grow Brand Love’ strategy, leveraging the extensive industry experience of the new leaders to drive growth and enhance brand loyalty.

Signet Jewelers Holds Annual General Meeting 2025

On July 1, 2025, Signet Jewelers Limited held its Annual General Meeting of Shareholders, where several key proposals were voted on. Eleven members were elected to the Board of Directors, KPMG LLP was appointed as the independent registered public accounting firm, and the compensation of the company’s named executive officers was approved on a non-binding advisory basis.

Signet Jewelers Announces Board Member Resignation

On June 27, 2025, Signet Jewelers Limited announced the resignation of Board member Jonathan Seiffer, effective after the Annual General Meeting on July 1, 2025. The Board will reduce its size from 12 to 11 members following his departure, and Seiffer’s resignation was not due to any disagreements with the company.