Latest news with #SomnigroupInternationalInc
Yahoo
29-07-2025
- Business
- Yahoo
What Makes Somnigroup International Inc (SGI) an Investment Choice?
The London Company, an investment management company, released 'The London Company SMID Cap Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a downturn in Q1, U.S. stocks experienced a double-digit gain in Q2, amid volatility stemming from tariff news. A risk-on rally followed due to a temporary pause in tariff escalations, widespread optimism around enterprise AI, and a healthy earnings outlook. Against this backdrop, the portfolio fell 0.6% (-0.8% net) during the second quarter vs. an 8.6% increase in the Russell 2500 Index. Sector allocation contributed to the fund's performance in the quarter, while stock selection detracted. Please review the fund's top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, The London Company SMID Cap Strategy highlighted stocks such as Somnigroup International Inc. (NYSE:SGI). Somnigroup International Inc. (NYSE:SGI) is a bedding products manufacturer. The one-month return of Somnigroup International Inc. (NYSE:SGI) was 7.30%, and its shares gained 43.84% of their value over the last 52 weeks. On July 28, 2025, Somnigroup International Inc. (NYSE:SGI) stock closed at $74.78 per share, with a market capitalization of $15.598 billion. The London Company SMID Cap Strategy stated the following regarding Somnigroup International Inc. (NYSE:SGI) in its second quarter 2025 investor letter: "Initiated: Somnigroup International Inc. (NYSE:SGI) – Formerly Tempur Sealy, SGI is the combined company of Tempur Sealy the acquired Mattress Firm. SGI is the clear leader in the bedding industry, and the company is gaining market share while generating robust free cash flow. Strong brand equity, solid management execution, and vertical integration from the acquisition support our investment thesis. Currently, the bedding market is weak with volumes near a 30-year low. Higher mortgage rates and rising home prices may limit unit sales in the short term. Longer term, we believe that an eventual industry rebound, synergies from the acquisition, and greater innovation are keys to the company's success. We have owned SGI in the past and just sold it from the Small Cap portfolio due to its rising market cap following the acquisition of Mattress Firm." A satisfied customer sleeping on a comfortable bed, bedding products laid out on the bed. Somnigroup International Inc. (NYSE:SGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Somnigroup International Inc. (NYSE:SGI) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the potential of Somnigroup International Inc. (NYSE:SGI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Somnigroup International Inc. (NYSE:SGI) and shared The London Company Small Cap Strategy's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
13-05-2025
- Business
- Yahoo
Here's Why Somnigroup International (SGI) Rose in Q1
The London Company, an investment management company, released 'The London Company Small Cap Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy's relative performance in the quarter, partially offset by sector exposure. For more information on the fund's top picks in 2025, please check its top five holdings. In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Somnigroup International Inc. (NYSE:SGI). Somnigroup International Inc. (NYSE:SGI) is a bedding products manufacturer. The one-month return of Somnigroup International Inc. (NYSE:SGI) was 8.57%, and its shares gained 20.44% of their value over the last 52 weeks. On May 12, 2025, Somnigroup International Inc. (NYSE:SGI) stock closed at $64.23 per share with a market capitalization of $13.397 billion. The London Company Small Cap Strategy stated the following regarding Somnigroup International Inc. (NYSE:SGI) in its Q1 2025 investor letter: "Somnigroup International Inc. (NYSE:SGI) - SGI continues to perform well despite weak industry demand. The approval of the Mattress Firm deal during the quarter is a major development, offering long-term benefits through vertical integration and enhancing its competitive position. Valuation remains compelling and our investment thesis is supported by robust free cash flow generation, strong brand equity, and solid management execution." antonio-caverzan-D1YruV0KUDw-unsplash Somnigroup International Inc. (NYSE:SGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In Q4 2025, Somnigroup International Inc (NYSE:SGI) reported net sales of approximately $1.2 billion and adjusted EPS of $0.60. While we acknowledge the potential of Somnigroup International Inc. (NYSE:SGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Somnigroup International's (NYSE:SGI) Dividend Will Be $0.15
Somnigroup International Inc. (NYSE:SGI) will pay a dividend of $0.15 on the 5th of June. Even though the dividend went up, the yield is still quite low at only 0.9%. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. If it is predictable over a long period, even low dividend yields can be attractive. Before making this announcement, Somnigroup International was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business. Over the next year, EPS is forecast to expand by 163.6%. Assuming the dividend continues along recent trends, we think the payout ratio could be 20% by next year, which is in a pretty sustainable range. View our latest analysis for Somnigroup International Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. The annual payment during the last 4 years was $0.28 in 2021, and the most recent fiscal year payment was $0.60. This means that it has been growing its distributions at 21% per annum over that time. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed. Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that Somnigroup International has grown earnings per share at 5.1% per year over the past five years. Somnigroup International definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio. We should note that Somnigroup International has issued stock equal to 20% of shares outstanding. Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created. In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Case in point: We've spotted 3 warning signs for Somnigroup International (of which 1 can't be ignored!) you should know about. Is Somnigroup International not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Somnigroup International (NYSE:SGI) jumps 4.7% this week, though earnings growth is still tracking behind five-year shareholder returns
Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. For example, the Somnigroup International Inc. (NYSE:SGI) share price is up a whopping 440% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. We note the stock price is up 4.7% in the last seven days. Since it's been a strong week for Somnigroup International shareholders, let's have a look at trend of the longer term fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Somnigroup International achieved compound earnings per share (EPS) growth of 16% per year. This EPS growth is lower than the 40% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here . It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Somnigroup International's TSR for the last 5 years was 465%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. It's nice to see that Somnigroup International shareholders have received a total shareholder return of 19% over the last year. That's including the dividend. However, that falls short of the 41% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Somnigroup International better, we need to consider many other factors. Even so, be aware that Somnigroup International is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored... If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
