Somnigroup International Inc (SGI) Market Cap
Somnigroup International Inc has a market capitalization of —.
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CEO: Scott L. Thompson
Sector: Consumer Cyclical
Industry: Furnishings, Fixtures & Appliances
IPO Date: 2003-12-18
Website: https://somnigroup.com
Somnigroup International Inc (SGI) - Company Information
Market Cap: -|Sector: Consumer Cyclical
Company Profile
Somnigroup International Inc., operating as Somni, leads the field in advanced sleep technology and holistic wellness solutions. They engineer groundbreaking products specifically designed to elevate sleep quality. Their approach seamlessly integrates scientifically validated methods, intelligent technology, and data-driven insights to optimize sleep patterns and foster overall well-being.
Analyst Sentiment
From 10 Active Polls
1Y Forecast: $98.20
▲ +0.0% Potential Upside
Consensus Target Metrics
Low Bound
$90
Median
$95
High Bound
$106
Average
$98
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
Sentiment volume allocation data unavailable.
Historical valuation matrix unavailable.
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📊 AI Financial Analysis
Powered by StockMarketInfo"SGI delivered a strong rebound in 2026-03-31 (Q1): Revenue was $1.80B and Net Income rose to $104.2M (EPS ~$0.50). On a YoY basis, Revenue increased ~12.3% (from $1.60B in Q1’25) and Net Income swung from a loss of $(33.1)M in Q1’25 to a gain of $104.2M. QoQ, Revenue declined ~3.6% (from $1.87B in Q4’25), while Net Income fell ~26.0% (from $140.8M in Q4’25), indicating some normalization after the prior quarter. Profitability improved year-over-year: net margin improved to ~5.8% in Q1’26 from ~-2.1% in Q1’25, aided by gross margin stabilizing around the low-to-mid 40% range. Margins contracted QoQ (net margin ~7.5% in Q4’25 to ~5.8% in Q1’26), consistent with lower operating income ($187.1M). Cash flow quality is solid: operating cash flow was $246.5M and free cash flow was $186.0M, though both declined vs. Q4’25 (OCF $99.4M in Q4; FCF $41.1M). The company paid a modest dividend ($5.3M) with a low payout ratio (~5%). Balance sheet resilience appears mixed for a non-bank: total assets were ~$11.54B, equity ~$3.15B, with net debt still elevated (~$2.0B). Total shareholder returns are likely positive given the strong market momentum: price was $85.01 and the 1y change is +47%."
Revenue Growth
YoY Revenue up ~12.3% (Q1’26 $1.80B vs Q1’25 $1.60B). QoQ Revenue down ~3.6% (vs Q4’25 $1.87B), suggesting a pullback after prior-quarter strength.
Profitability
Net margin improved to ~5.8% in Q1’26 from ~-2.1% in Q1’25, and EPS turned positive ($0.50 vs -$0.17). QoQ profitability contracted (net income down ~26% vs Q4’25), but margins remain materially above last year.
Cash Flow Quality
Q1’26 operating cash flow was $246.5M and free cash flow $186.0M. Dividend outflow was small ($5.3M) with a low payout ratio (~5%), supporting cash flexibility. Trend vs Q4 is mixed (lower FCF than Q4?—Q4 FCF was $41.1M, so Q1 is higher).
Leverage & Balance Sheet
Total assets were ~$11.54B; equity ~$3.15B. Net debt remains meaningful (~$2.0B) and leverage metrics show higher risk than an unlevered balance sheet, though cash is ~$111M plus working-capital support.
Shareholder Returns
Price momentum is strong: +47% 1y. Dividend yield is small (~0.03%), and buybacks are not shown in this quarter, so returns are driven primarily by capital appreciation.
Analyst Sentiment & Valuation
Valuation multiples remain elevated (e.g., price/earnings ~37x; price/sales ~8.6x). Consensus price target (~$102) implies upside vs $85.01, but affordability appears stretched.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
So what: SGI delivered strong Q1 operating momentum despite a weaker-than-expected demand backdrop (global bedding down mid-single digits). Adjusted EPS grew 20% to $0.59 and EBITDA expanded with margin lift >100 bps, driven by Tempur Sealy North America’s large gross and operating margin expansion (+1,300 bps and +710 bps, respectively) and improved international margins (+140/+160 bps). However, Mattress Firm was the drag: gross margin -360 bps to 31.5% and operating margin -230 bps to 4.9% from promotional expense, product mix, and fixed cost deleverage—partially influenced by cooperative advertising economics moving through operating expense rather than gross margin. The key near-term risk is Q2 commodity transitory exposure: management flagged ~$10M profit headwind and expects Q2 EPS growth only 5%–10%, while pricing actions after July 4 are designed to be dollar-neutral on an annual basis and lift back-half sales by ~$50M like-for-like (plus ~$100M annualized). With leverage at 3.1x and record free cash flow, SGI’s execution remains the differentiator.
Growth Catalysts
- Tempur Sealy North America outperformed market with like-for-like wholesale +8% and improved advertising-driven momentum
- International delivered double-digit reported growth (+16% reported, +7% constant currency) with mix/efficiency gains
- Dreams (U.K. retailer) outperformed the category with strong brand awareness/share of voice and healthy order volume
- Mattress Firm operating execution supported flat same-store sales despite an industry down mid-single digits
Business Development
- Definitive agreement to combine with Leggett & Platt (all-stock ~$2.5B including assumed debt); expected close by year-end; Leggett to operate as a separate business unit
- Tempur Sealy supply contract economics structured with cooperative advertising credit influencing Mattress Firm expense line
- Stearns & Foster 2H launch positioning via price architecture reset and hybrid mix; Mattress Firm advertising slot commitment and training support
Financial Highlights
- Net sales +12% to $1.8B; adjusted EBITDA +20% to $297M; adjusted EPS +20% to $0.59
- EBITDA margin expanded by over 100 bps (management highlight)
- Mattress Firm adjusted gross margin -360 bps to 31.5% (incl. 40 bps stub-period headwind), driven by promotional expense, product mix, and fixed cost deleverage; adjusted operating margin -230 bps to 4.9% (incl. 150 bps stub headwind)
- Tempur Sealy North America adjusted gross margin +1,300 bps to 58.3% (incl. 600 bps stub benefit) and adjusted operating margin +710 bps to 24.3% (incl. 230 bps stub benefit)
- Tempur Sealy International adjusted gross margin +140 bps to 50.4% and adjusted operating margin +160 bps to 18.4%
- Commodity inflation guidance: expected full-year earnings insulated; Q2 profit headwind approx. $10M; annualized pricing lift ~$100M back-half 2026 and dollar-neutral on a full-year basis
- 2026 guidance: adjusted EPS $3.00 to $3.40; reported gross margin slightly above 45%; nearly 100 bps net margin expansion (operational efficiencies) partially offset by pricing actions being margin dilutive
- 2026 seasonality/pacing: pricing actions take effect after July 4 promotional period; Q2 headwind expected to reverse in Q3/Q4
Capital Funding
- Operating cash flow record $247M; free cash flow record $186M
- Reduced net debt by nearly $500M over trailing 12 months
- Returned over $250M to shareholders via dividends and buybacks
- Debt less cash $4.5B; leverage ratio under credit facility 3.1x; targeted leverage 2–3x in next few months
- CapEx 2026 expected ~$225M (incl. $75M Mattress Firm store refreshes and brand wall installation); CapEx normalize ~$200M in future years
- Mattress Firm $150M store refresh program: ~$40M spent to date; all funded by operating cash flow
Strategy & Ops
- Profitability improvement via operating leverage: +12% sales producing EBITDA margin expansion >100 bps
- E-commerce advertising reduced in Q1, contributing to like-for-like direct channel -12% (traffic reduction); management cited improving trends recently
- North America strategy: expect new Tempur Sealy lineup launch in 2H and optimize price architecture; add top-tier SKUs to target resilient higher-price customers
- Supply/cost management: pricing actions coordinated with retailer merchandising timelines; supplier contract visibility ahead of P&L flow to minimize interim exposure
- Summer selling season inventory build in Q1 reflected in intercompany sales; no corresponding EBITDA sales benefit realized per management
Market Outlook
- Industry demand: management believes global bedding demand declined mid-single digits in Q1 vs expectation flat to slightly positive
- 2026 industry assumption: global bedding industry flat to slightly down YoY
- 2026 like-for-like targets in guidance narrative: Tempur Sealy NA mid-single-digit like-for-like wholesale/overall; International mid-single digits; Mattress Firm like-for-like low single digits; North America Tempur Sealy wholesale mid-single digits and direct channel impact normalized
- Full-year EPS guidance: $3.00–$3.40 (midpoint $3.20)
- Second-quarter EPS growth expectation: between 5% and 10% despite commodity transitory items
- Back-half growth driver: pricing action effect after July 4 promotional period
Risks & Headwinds
- Demand softness: geopolitical tensions and U.S. winter weather disruptions; bedding demand declined mid-single digits in Q1
- Consumer confidence normalization risk: guidance midpoint assumes normalization; continued pressure would track toward low end
- Q2 transitory commodity headwind: approx. $10M profit impact due to oil-derived items (chemicals, diesel, purchased foam) before pricing actions fully implement
- Mattress Firm margin pressure from promotional expense, product mix, and fixed cost deleverage (gross margin -360 bps; operating margin -230 bps)
- Traffic pressure: Mattress Firm and industry traffic down single digits; Canada/Mexico described as weak vs U.S.
Q&A: Analyst Interest
- Topic: Demand/price elasticity and relative outperformance under consumer strain: Management said closing-rate evidence indicates low disruption—customers discover price in-store and closing rates improve. Management also framed recent pricing increases as among the lowest in the industry and cited top-tier share-of-voice plus balance-sheet/cash-flow strength.
- Topic: Inflation exposure detail and pricing offset timing: Management quantified annualized commodity inflation impact at ~$100M and the remaining-in-year as ~$50M, with the second quarter taking transitory items (primarily oil-derived inputs). They said pricing actions are dollar-for-dollar offset annually; Q2 EPS growth expected 5%–10% with headwind reversing in Q3/Q4.
- Topic: Stearns & Foster 2H launch setup versus prior launches: Management described pricing architecture “last piece” after brand rebalancing, including pushing price brackets upward and leaning into hybrids. They also said Mattress Firm provides stronger launch support—advertising slot commitment plus training—giving more momentum than historical Stearns launches.
Sentiment: MIXED
Note: This summary was synthesized by AI from the SGI Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.