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Somnigroup International Inc (SGI)

Fair Value
Consumer CyclicalFurnishings, Fixtures & AppliancesUnited States

Fundamental

62

Price

$62.11

Market Cap

$13.10B

Part 1 · What the company is worth

Overview

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows and other accessories under the Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy's brands. The company operates a portfolio of retail brands, including Mattress Firm, Dreams, Tempur-Pedic retail stores, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. It sells its products through company-owned stores, online, and call centers; and third-party retailers, including third party distribution, hospitality, and healthcare. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. The company was founded in 1846 and is based in Dallas, Texas.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$7.62B

Trailing 12 months (through 6/30/2026)

Net Income

$533M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$633M

Total Equity

$3.11B

Total Liabilities

$8.48B

Current Ratio

0.75

Interest Coverage

3.76

Debt/EBITDA

6.13

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$55.62

Current Price

$62.11

Margin of Safety

-11.7%

Fair Value Range

$36.15 - $75.09

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$93.44
Discounted cash flow (DCF):$33.26
Earnings multiple (P/E):$44.92
Graham growth formula:$28.94
Earnings power value (EPV):$30.20
Justified P/B:$25.36
Dividend discount (Gordon):$9.03
P/FFO, funds from operations:$51.31
Mid-cycle earnings:$65.11
Revenue multiple:$61.43
Analyst Consensus:Strong Buy (12B / 3H / 0S)
Last Earnings Surprise:-0.33%

Valuation Metrics

P/E Ratio

24.36

ROE

12.4%

P/B Ratio

4.05

P/FCF

16.99

Gross Margin

44.2%

ROIC

7.6%

Profitability Radar

Value Creation (Economic Moat)

ROIC

7.6%

WACC

9.1%

ROIC − WACC

-1.5 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 5.10%
  • Price CAGR 14.61%
  • ROIC 7.6%
  • Gross Margin 44.2%
  • P/FCF 16.99
  • Debt/Equity ratio
  • Operating Margin 12.5%
  • Positive Free Cash Flow
  • Interest Coverage
  • Return on Tangible Assets
  • ROE 17.1%
  • Revenue Growth 5Y 15.3%
  • Analyst Consensus 80% Buy
  • Earnings Surprise avg 2.5%
  • Earnings Quality (OCF/NI) 1.86
  • Net Margin Trend 7.0% vs 4.5%
  • Piotroski F-Score 5/9

Failed (9)

  • P/B Ratio 4.05
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • PEG Ratio 11.92
  • Share Dilution 17.3%

Unavailable (1)

  • Dividend Payout NaN%

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.86

High quality: earnings backed by cash

Share Dilution

17.3%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Scott L. ThompsonChairman of the Board, CEO & President66
Mr. Bhaskar Rao CPAExecutive VP & CFO59
Mr. David MontgomeryExecutive Vice President of Business Development64
Mr. H. Clifford Buster IIIChief Executive Officer of Tempur Sealy North America55
Mr. Steven H. RusingPresident & CEO Mattress Firm60
Ms. Kindra BellisExecutive VP & Chief Information Officer-
Mr. Drew B. MillarChief Administrative Officer-
Ms. Kindel L. NunoExecutive VP, Chief Human Resources Officer & General Counsel44
Mr. Thomas A. MurrayExecutive VP & Chief Marketing Officer56
Ms. Stefani NortonSenior Vice President of US Sales-

Audit Risk

6

Board Risk

4

Compensation Risk

9

Shareholder Rights Risk

3

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-27

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-08-07

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-26

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for SGI, sourced from Markets Gazette.

No recent news for SGI.