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Somnigroup International
(NYSE:SGI)
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Rating:65Neutral
Price Target:
$73.00
â–²(13.90% Upside)
Action:Reiterated
Date:09/15/26
The score is driven mainly by solid profitability and strong free-cash-flow generation plus a constructive earnings call with maintained guidance and ongoing deleveraging. Offsetting this are the major red flag in reported TTM revenue growth (-74.7%), mixed technicals with the stock still below key longer-term moving averages, and a relatively high P/E with a low dividend yield.
Positive Factors
Vertical Integration
The completed Leggett & Platt combination materially broadens Somnigroup’s manufacturing footprint and vertical integration. Ownership of key components can improve coordination, support innovation, expand the addressable market, and create recurring synergy benefits over the integration period.
Negative Factors
Weak Industry Demand
A shrinking bedding market creates a durable near-term headwind for volume, retailer traffic, and operating leverage across Somnigroup’s channels. Even with share gains, industry contraction can constrain revenue growth and make promotional, marketing, and capacity decisions less efficient over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical Integration
The completed Leggett & Platt combination materially broadens Somnigroup’s manufacturing footprint and vertical integration. Ownership of key components can improve coordination, support innovation, expand the addressable market, and create recurring synergy benefits over the integration period.
Read all positive factors
Somnigroup International (SGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.27B
Dividend Yield1.07%
Average Volume (3M)3.51M
Price to Earnings (P/E)24.3
Beta (1Y)1.01
Revenue Growth27.07%
EPS Growth73.19%
CountryUS
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)2.55
Shares Outstanding230,239,200
10 Day Avg. Volume2,786,077
30 Day Avg. Volume3,505,083
Financial Highlights & Ratios
PEG Ratio-3.03
Price to Book (P/B)5.92
Price to Sales (P/S)2.46
P/FCF Ratio29.05
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit6.77
Enterprise Value/Ebitda18.45
Forecast
1Y Price Target
$92.00Price Target Upside43.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)3.1
Revenue Forecast (FY)$8.85B
Somnigroup International Business Overview & Revenue Model
Company Description
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 integr...
How the Company Makes Money
SGI primarily makes money by selling mattresses and other sleep-related products across multiple channels. Its key revenue streams generally include: (1) Wholesale sales: selling mattresses, foundations/bases, pillows, and other bedding products t...
Somnigroup International Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was predominantly positive. Somnigroup reported record adjusted EPS, strong North American margin expansion, record cash flow, substantial debt reduction, continued international share gains, and progress toward closing the Leggett & Platt combination ahead of schedule. These strengths outweighed the weaker industry backdrop, Mattress Firm margin declines, commodity inflation, Dreams' ERP and U.K. challenges, and the weak July 4 promotional period.Positive Updates
Record Second-Quarter Earnings
Somnigroup delivered record second-quarter adjusted earnings per share of $0.58, up 9% from the prior year, with net sales of $1.8 billion and adjusted EBITDA of $297 million despite a cautious consumer backdrop, macroeconomic uncertainty, and an industry believed to be down mid to high single digits.
Negative Updates
Industry Demand Weaker Than Expected
Management said second-quarter U.S. industry trends were weaker than expected, with the industry down mid to high single digits. Full-year industry expectations were revised from down low single digits to down mid-single digits.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Second-Quarter Earnings
Somnigroup delivered record second-quarter adjusted earnings per share of $0.58, up 9% from the prior year, with net sales of $1.8 billion and adjusted EBITDA of $297 million despite a cautious consumer backdrop, macroeconomic uncertainty, and an industry believed to be down mid to high single digits.
Read all positive updates
Company Guidance
For 2026, Somnigroup expects adjusted EPS to be between $2.85 and $3.15, with sales at the midpoint of approximately $7.6 billion after intercompany eliminations, which are expected to represent approximately 24% of global Tempur Sealy 2026 sales; the global bedding industry is expected to be down mid-single digits year-over-year, Tempur Sealy North America like-for-like sales growing low single digits, International business growing low single digits, and like-for-like Mattress Firm sales down slightly. Reported gross margins are expected to be slightly above 45%, including 100 basis points of net margin expansion from operational efficiencies, adjusted EBITDA is estimated at approximately $1.39 billion at the midpoint, Tempur Sealy brands and private labels are assumed to be in the mid-60s% of Mattress Firm total sales, representing an incremental $65 million of adjusted EBITDA benefit for 2026 versus 2025, with approximately $690 million of advertising investment. CapEx is expected to be approximately $225 million, including $75 million under Mattress Firm store refreshes and brand wall program, CapEx is expected to normalize to $200 million in future years, and at least 50% of free cash flow in 2026 is expected to go toward quarterly dividends and share repurchases; full-year D&A is expected to be approximately $310 million, interest expense approximately $230 million, the tax rate 25%, and diluted share count 213 million shares.Somnigroup International Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.62B | 7.48B | 4.93B | 4.93B | 4.92B | 4.93B |
| Gross Profit | 3.40B | 3.32B | 2.18B | 2.13B | 2.05B | 2.16B |
| EBITDA | 1.25B | 1.04B | 804.20M | 739.30M | 807.30M | 1.00B |
| Net Income | 533.30M | 384.10M | 384.30M | 368.10M | 455.70M | 624.50M |
Balance Sheet | ||||||
| Total Assets | 11.61B | 11.61B | 5.98B | 4.55B | 4.36B | 4.32B |
| Cash, Cash Equivalents and Short-Term Investments | 112.00M | 134.90M | 117.40M | 74.90M | 69.40M | 300.70M |
| Total Debt | 6.41B | 8.26B | 4.47B | 3.27B | 3.37B | 2.86B |
| Total Liabilities | 8.37B | 8.50B | 5.41B | 4.22B | 4.37B | 4.03B |
| Stockholders Equity | 3.23B | 3.11B | 559.00M | 323.40M | -22.10M | 285.80M |
Cash Flow | ||||||
| Free Cash Flow | 769.00M | 633.20M | 569.20M | 384.90M | 72.30M | 599.80M |
| Operating Cash Flow | 990.40M | 800.10M | 666.50M | 570.30M | 378.80M | 723.10M |
| Investing Cash Flow | -261.30M | -3.02B | -96.70M | -187.80M | -315.60M | -555.70M |
| Financing Cash Flow | -707.30M | 616.90M | 1.08B | -384.30M | -279.10M | 76.50M |
Somnigroup International Technical Analysis
Negative
64.09
Price Trends
65.59
Negative
68.35
Negative
76.10
Negative
Market Momentum
-1.15
Positive
41.27
Neutral
40.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGI, the sentiment is Negative. The current price of 64.09 is below the 20-day moving average (MA) of 64.76, below the 50-day MA of 65.59, and below the 200-day MA of 76.10, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 40.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGI.
Somnigroup International Risk Analysis
Somnigroup International disclosed 21 risk factors in its most recent earnings report. Somnigroup International 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
Somnigroup International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $22.37B | 30.23 | 17.78% | 1.29% | 2.69% | 46.04% | |
65 Neutral | $14.27B | 24.30 | 17.11% | 1.07% | 27.07% | 73.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $67.17B | 33.12 | 631.14% | 2.49% | 5.24% | -29.04% | |
61 Neutral | $33.04B | 19.77 | 15.58% | 6.06% | 1.75% | 16.81% | |
58 Neutral | $31.38B | 16.05 | 122.57% | 5.40% | -12.19% | -19.22% | |
57 Neutral | $9.72B | 16.68 | -1893.55% | 6.18% | -5.41% | -26.46% |
* Consumer Cyclical Sector Average
SGI
Somnigroup International
61.97
-21.76
-25.99%
CHD
Church & Dwight
94.31
6.56
7.47%
CLX
Clorox
80.41
-32.98
-29.08%
CL
Colgate-Palmolive
84.26
8.70
11.51%
KMB
Kimberly Clark
94.36
-20.31
-17.71%
KVUE
Kenvue, Inc.
17.20
2.41
16.26%
Somnigroup International Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Somnigroup International Completes Leggett & Platt Acquisition
Positive
Aug 26, 2026
On August 26, 2026, Somnigroup International completed its previously announced all-stock acquisition and combination with Leggett Platt, making the diversified engineered components manufacturer a wholly owned subsidiary. The deal values Leggett...
Business Operations and StrategyM&A Transactions
Somnigroup nears completion of Leggett & Platt merger
Positive
Aug 25, 2026
On April 13, 2026, Somnigroup International entered into a merger agreement under which its subsidiary Sparrow Unity Corporation will merge with Leggett Platt, leaving Leggett Platt as a direct wholly owned subsidiary of Somnigroup. As of August...
Business Operations and StrategyM&A Transactions
Somnigroup International Updates Strategy Amid Bedding Recovery
Positive
Aug 6, 2026
On August 6, 2026, Somnigroup International released an updated investor presentation outlining its investment thesis and strategic priorities as the global bedding industry emerges from a prolonged downturn. The materials emphasize the company...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Somnigroup International Refinances And Extends Credit Facilities
Positive
Jul 27, 2026
On July 27, 2026, Somnigroup International Inc. executed Amendment No. 5 to its 2023 Credit Agreement, refinancing and extending its senior secured facilities. The company secured a new $1.2 billion term loan A and expanded its revolving credit co...
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.