tiprankstipranks
Trending News
More News >
Superior Group of Companies (SGC)
NASDAQ:SGC

Superior Group of Companies (SGC) AI Stock Analysis

Compare
192 Followers

Top Page

SG

Superior Group of Companies

(NASDAQ:SGC)

Rating:61Neutral
Price Target:
$10.50
▲(7.80%Upside)
Superior Group's stock score is primarily impacted by profitability challenges and weak technical indicators. While the company has a strong cash position and attractive dividend yield, declining margins and reduced revenue guidance weigh on the overall outlook.
Positive Factors
Dividend Yield
The current annualized dividend of $0.56 per share offers a compelling 5.8% annualized dividend yield.
Market Share
Superior’s Branded Products segment continues to gain market share during economic uncertainty due to its strong balance sheet and aggressive approach to the market.
Revenue Growth
The new business pipeline for Superior’s Branded Products segment is at record levels, positioning the business for solid revenue growth when economic headwinds subside.
Negative Factors
Customer Hesitancy
Customer hesitancy related to economic uncertainty continued throughout Q1/25, with decision-making slowing further recently due to uncertainty about tariffs.
EBITDA Decline
Q1/25 EBITDA declined -63.2% YOY to $3.5 million, lower than analyst estimates and consensus.
Gross Margin Contraction
Q1/25 EBITDA declined -63.2% YOY to $3.5 million, driven primarily by a 300 basis point contraction in gross margin to 36.8%.

Superior Group of Companies (SGC) vs. SPDR S&P 500 ETF (SPY)

Superior Group of Companies Business Overview & Revenue Model

Company DescriptionSuperior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products. The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for personnel of hospitals and healthcare facilities; hotels; food and other restaurants; retail stores; special purpose industrial facilities; commercial markets; transportation; public and private safety and security organizations; and miscellaneous service uses. It also provides various products directly related to uniforms and service apparel; industrial laundry bags for linen suppliers and industrial launderers; personal protective equipment; and promotional and related products for branded marketing programs, corporate awards, incentives and recognition programs, event promotions, employee and consumer rewards and incentives, and specialty packaging and displays. This segment sells its products under the Fashion Seal Healthcare, HPI, and WonderWink brand names. The Remote Staffing Solutions segment provides multilingual telemarketing and business process outsourced solutions through the recruitment and employment of qualified English-speaking agents. The Promotional Products segment produces and sells promotional products and other branded merchandise under the BAMKO, Public Identity, Tangerine, Gifts by Design, and Sutter's Mill brands to corporate clients and universities. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.
How the Company Makes MoneySGC generates its revenue through multiple streams. The primary revenue stream comes from its uniform and apparel segment, where it designs, manufactures, and distributes a wide range of uniforms and corporate identity apparel to businesses in various industries. Another significant source of revenue is its call center operations segment, which offers inbound and outbound customer engagement solutions for a diverse client base. Additionally, the promotional products segment contributes to its earnings by providing customized promotional merchandise that helps businesses enhance their brand recognition. Strategic partnerships and long-term client relationships play a crucial role in sustaining and growing these revenue streams.

Superior Group of Companies Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -5.71%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture, with significant challenges including a net loss, decreased EBITDA, and reduced revenue guidance due to economic uncertainty and tariff impacts. However, there were positive notes with a strong pipeline in branded products, growth in the contact center segment, a solid cash position, and strategic cost management initiatives.
Q1-2025 Updates
Positive Updates
Record Pipeline in Branded Products
The pipeline of business opportunities in branded products is setting new records, with a strong order backlog and customer retention over 90%.
Growth in Contact Center Business
Contact center business segment grew revenue by 3% with solid retention and growth of existing customers as well as adding new customers.
Strong Cash Position and Share Buyback
Ended the first quarter with $20 million in cash and cash equivalents, up from $19 million at the start of the year. Completed $3.8 million worth of share buyback during the first quarter.
Cost Management and Efficiency Improvements
Implemented approximately $13 million in annualized budgeted expense reductions to support stronger profitability.
Negative Updates
Net Loss for the Quarter
Recorded a first quarter net loss of approximately $800,000 compared to net income of $3.9 million in the first quarter of 2024, resulting in a net loss per share of $0.05.
Decline in Healthcare Apparel Revenue
First quarter revenue for Healthcare Apparel was down 7% versus the prior year, reflecting a decline in institutional Healthcare Apparel.
Reduced Full-Year Revenue Guidance
Updated full-year revenue outlook to be in the range of $550 million to $575 million, down from the prior range of $585 million to $595 million, due to economic uncertainty and tariffs.
Decrease in EBITDA
Consolidated EBITDA came in at $3.5 million versus $9.6 million a year earlier, a significant decrease due to lower gross margins and increased SG&A expenses.
Company Guidance
During the Superior Group of Companies' First Quarter 2025 Conference Call, several key metrics were highlighted in the company's financial guidance and performance discussion. Despite macroeconomic headwinds, including inflation, interest rates, and escalating tariffs, Superior Group reported a nearly flat year-over-year revenue change, with a slight 1% decline to $550-$575 million from the previous $585-$595 million outlook. The company experienced a shift in gross margins, decreasing from 39.8% to 36.8%, primarily due to sales mix changes. The call also noted a net loss per share of $0.05 compared to the previous year's earnings of $0.24 per diluted share. The Branded Products segment saw a less than 1% revenue decrease, while Healthcare Apparel declined by 7%, and the contact center business grew by 3%. Despite a first-quarter net loss of approximately $800,000, Superior Group maintained a strong balance sheet with $20 million in cash and a net leverage ratio of 2.2x. The company has implemented annualized budget expense reductions of approximately $13 million to support future profitability, with the expectation of improved operating cash flow and working capital management.

Superior Group of Companies Financial Statement Overview

Summary
Superior Group of Companies shows stability in revenue and cash flow management but faces profitability challenges with declining net and EBIT margins. The balance sheet indicates improved leverage but reduced equity returns. Strong operational cash generation is offset by fluctuating free cash flow.
Income Statement
65
Positive
Superior Group of Companies shows stable gross profit margins around 38%, indicating strong cost control. However, net profit margins have declined from 7.8% in 2021 to 1.3% in TTM (Trailing-Twelve-Months), reflecting profitability challenges. Revenue growth was inconsistent, with a slight dip in TTM compared to 2024. EBIT margins decreased from 6.4% to 2.8% in TTM, demonstrating pressure on operational efficiency.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio improved to 0.54 in TTM, indicating better leverage management. Return on equity (ROE) declined to 3.8% in TTM, showing reduced shareholder returns. The equity ratio remains stable around 47%, reflecting solid asset management despite some fluctuations.
Cash Flow
70
Positive
Operating cash flow to net income ratio of 3.0 in TTM suggests strong cash generation relative to reported earnings. Free cash flow to net income ratio is positive, indicating good cash conversion despite lower net income. Free cash flow growth rate is negative compared to 2024, hinting at potential investment or operational adjustments.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
563.93M565.68M543.30M578.83M536.99M526.70M
Gross Profit
215.70M220.58M203.55M193.36M186.01M188.76M
EBIT
15.83M20.65M19.49M14.92M34.35M51.30M
EBITDA
27.75M33.84M33.48M-20.14M43.64M61.59M
Net Income Common Stockholders
7.33M12.00M8.77M-31.97M29.44M41.03M
Balance SheetCash, Cash Equivalents and Short-Term Investments
19.76M18.77M19.90M17.72M8.94M5.17M
Total Assets
410.97M415.13M422.45M456.94M470.25M393.92M
Total Debt
105.36M101.09M110.52M162.39M119.86M89.26M
Net Debt
85.60M82.33M90.62M144.67M110.92M84.08M
Total Liabilities
216.54M216.28M224.81M264.34M243.25M202.29M
Stockholders Equity
194.43M198.86M197.64M192.60M226.99M191.63M
Cash FlowFree Cash Flow
17.10M28.99M73.97M-13.62M-616.00K29.50M
Operating Cash Flow
21.99M33.43M78.93M-2.60M17.08M41.36M
Investing Cash Flow
-8.89M-8.44M-5.51M-17.43M-34.13M-6.57M
Financing Cash Flow
-14.47M-24.47M-71.62M28.85M21.00M-38.44M

Superior Group of Companies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.74
Price Trends
50DMA
10.11
Negative
100DMA
11.48
Negative
200DMA
13.40
Negative
Market Momentum
MACD
-0.05
Positive
RSI
42.43
Neutral
STOCH
16.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGC, the sentiment is Negative. The current price of 9.74 is below the 20-day moving average (MA) of 10.05, below the 50-day MA of 10.11, and below the 200-day MA of 13.40, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.43 is Neutral, neither overbought nor oversold. The STOCH value of 16.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGC.

Superior Group of Companies Risk Analysis

Superior Group of Companies disclosed 34 risk factors in its most recent earnings report. Superior Group of Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Superior Group of Companies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$16.17B10.72-5.56%3.15%1.66%-23.91%
SGSGC
61
Neutral
$155.67M22.023.71%5.75%2.28%-37.96%
51
Neutral
$41.19M-5.77%5.97%15.70%-337.22%
50
Neutral
$49.11M-31.18%-9.80%-59.08%
UFUFI
49
Neutral
$86.85M-15.73%2.51%32.95%
47
Neutral
$18.24M6.22-63.56%1.46%-191.66%
46
Neutral
$126.54M-17.61%0.90%34.28%-495.11%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SGC
Superior Group of Companies
9.74
-8.33
-46.10%
LAKE
Lakeland Industries
13.30
-8.58
-39.21%
UFI
Unifi
4.73
-0.95
-16.73%
VNCE
Vince Holding
1.42
0.03
2.16%
CULP
Culp
3.91
-0.47
-10.73%
JRSH
Jerash Holdings (US)
3.35
0.51
17.96%

Superior Group of Companies Corporate Events

Stock BuybackRegulatory Filings and Compliance
Superior Group Initiates Stock Repurchase Plan
Neutral
Jun 20, 2025

On June 19, 2025, Superior Group of Companies, Inc. announced the implementation of a 10b5-1 trading plan to repurchase a specified number of its outstanding common stock shares. This plan, which begins on June 20, 2025, is part of a previously authorized share repurchase program and is designed to comply with regulatory requirements under the Securities Exchange Act of 1934. The repurchase will be managed by an independent broker and is subject to various constraints, potentially impacting the company’s stock market operations and shareholder value.

The most recent analyst rating on (SGC) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Superior Group of Companies stock, see the SGC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.