Bedrijfsoverzicht
Superior Group of Companies, Inc. is a prominent player in the consumer cyclical sector, specifically within the apparel manufacturing industry, focusing on the production and distribution of promotional products, branded uniforms, healthcare apparel, and accessories across the United States and international markets. The company operates through three distinct business segments: Branded Products, Healthcare Apparel, and Contact Centers, allowing it to diversify its revenue streams and serve a broad clientele in both corporate and healthcare sectors. With a total market capitalization of $168.98M and annual revenue reaching $566.18M, the company demonstrates a significant operational footprint supported by a workforce of 6,520 employees. These financial metrics indicate a mid-to-large-cap enterprise with substantial revenue generation capabilities, suggesting a stable position within the apparel manufacturing landscape that relies on high-volume sales to maintain profitability in a competitive market environment.
Financiële gezondheid
The company reported a trailing twelve-month revenue of $566.18M, generating a net income of $7.00M and an EBITDA of $25.84M, which highlights a substantial gap between top-line revenue and bottom-line profit that reveals a significant cost structure involving operating expenses, taxes, and interest. This disparity suggests that while the company generates considerable gross receipts, a large portion is consumed by overheads and operational costs, leaving a relatively thin net income margin. Free cash flow stands at $14.67M, indicating that the company retains sufficient cash after capital expenditures to fund operations, pay down debt, or invest in strategic initiatives without relying heavily on external financing. The gross margin is reported at 37.6%, reflecting the pricing power and cost efficiency in sourcing and manufacturing apparel products, while the operating margin sits at 3.7%, indicating moderate efficiency before interest and taxes. The profit margin is further compressed to 1.2%, underscoring the sensitivity of earnings to changes in operating costs or sales volume in this industry. On the balance sheet, the company holds $23.69M in cash against $105.96M in debt, resulting in a debt-to-equity ratio of 54.95, which points to a leveraged financial structure rather than a conservative one. Despite the leverage, the current ratio of 2.67 indicates robust short-term liquidity, as current assets are more than double current liabilities, ensuring the ability to meet immediate financial obligations. Return on equity is calculated at 3.6% and return on assets at 2.0%, metrics that reveal modest management effectiveness in generating returns relative to the shareholders' equity and the total asset base utilized.
Waarderingsbeoordeling
Superior Group of Companies, Inc. trades with a trailing P/E ratio of 23.39 and a forward P/E of 12.91, and the significant difference between these two figures implies that the market expects a substantial increase in future earnings relative to current levels. The price-to-book ratio is 0.88, suggesting that the stock is currently trading below its book value, which may indicate that the market perceives the company's assets as undervalued or that the business faces specific sector-related risks preventing a premium. Alternative valuation metrics such as the price-to-sales ratio of 0.30 and an EV/EBITDA of 9.72 provide additional context, showing that the company is valued at a low multiple of its sales and enterprise value, which can be attractive in cyclical industries but may also reflect limited growth expectations. The stock has a 52-week high of $13.78 and a 52-week low of $8.30, and while the exact current price is not explicitly defined in the provided facts, the valuation metrics suggest the stock is positioned within this historical range, reacting to market conditions and earnings volatility. With a beta of 1.39, the company's stock price is expected to exhibit higher volatility than the broader market, moving more than 39% more aggressively in response to market fluctuations, which adds a layer of risk for price-sensitive investors.
Growth & Income
Revenue growth for the trailing twelve months is recorded at 0.8%, while earnings growth surged to 80.8% year-over-year, indicating that earnings are growing significantly faster than revenue, likely driven by margin expansion, one-time gains, or operational efficiencies rather than top-line volume increases. The company offers a dividend yield of 5.2%, but this comes with a payout ratio of 121.7%, which is unsustainable given that it exceeds 100% of the net income, signaling that the company may be paying dividends from cash reserves or debt rather than current earnings. This high payout ratio in conjunction with the low revenue growth suggests that the current dividend level cannot be maintained indefinitely without a change in profitability or a reduction in the dividend amount. Consequently, the overall growth and income profile presents a mixed picture where income is currently supported by existing cash balances rather than organic earnings growth, and future income sustainability depends heavily on the company's ability to improve net income margins or reduce its aggressive dividend payout.