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Somnigroup International Inc (SGI) Fair Value & Analysis

Consumer Cyclical · US · Market cap $15.4B

SI Somnigroup International Inc logo Somnigroup International Inc SGI · US
Price$64.87
Fair Value$27.03
Upside-58.3%
Quality36/100
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Mixed Growth
Thin margins · 6.8% net margin
Moderate debt · generates free cash flow
0.86% dividend yield
Mixed vs. peers (6/15)
Moderate moat 51/100
Evidence: High Range $19.79 – $42.00 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Share price −13.3% over the past month.

Below-average quality, and screening another 58% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($42.00). The favourable scenario is already priced in.
  • Weak quality (36/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range ($19.79 to $42.00) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$97.54 $19.57 Fair Value $27.03 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $19.57 – $97.54 · fair‑value band $19.79 – $42.00 · the $64.87 price screens above the $27.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Somnigroup International Inc (SGI) currently trades at $64.87, while our model-based Fair Value estimate is $27.03, implying the stock looks roughly 58.3% overvalued today. We read business quality at 36/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Somnigroup International Inc generated revenue of $7.7B at a net margin of 6.8%. Revenue grew 12.3% year over year. It earns a return on equity of 17.7%. Net debt stands at $8.1B. Fundamentals as of Jul 16, 2026

Our scenario range runs from $19.79 (bear case) to $42.00 (bull case); at $64.87, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 16% fair-value upside, at -58%, SGI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $26.55 $73.48 $150.38 80
Residual Income $13.82 $16.65 $36.95 76
Rev-Margin DCF $31.07 $77.33 $171.08 74
All 26 models by family
DCF Models
FCF DCF $29.56 $58.62 $151.14 38
Owner Earnings $13.73 $58.15 $151.41 31
5Y Revenue Exit $27.26 $64.99 $144.15 39
5Y EBITDA Exit $36.00 $82.65 $174.25 41
5Y P/E Exit $13.45 $51.02 $101.34 38
10Y Revenue Exit $26.90 $89.78 $131.49 36
10Y EBITDA Exit $35.21 $108.59 $237.89 37
10Y P/E Exit $18.76 $60.05 $125.89 35
Earnings-Based
Graham-Dodd $12.42 $86.59 $121.51 54
Lynch FV $39.86 $56.95 $74.03 50
PEG = 1.0 $39.86 $56.95 $74.03 46
EPV $19.05 $25.74 $31.60 59
Dividend Discount
Gordon GGM $5.56 $11.56 $18.34 70
DDM Multi-Stage $5.56 $9.75 $12.13 61
Multiples
P/E Multiple $27.39 $36.52 $45.65 63
P/S Multiple $23.28 $31.04 $38.80 58
P/B Multiple $23.28 $31.04 $38.80 55
EV/EBIT $42.14 $63.22 $84.30 53
EV/EBITDA $36.14 $55.21 $74.29 54
EV/Revenue $21.53 $39.80 $58.06 43
Asset-Based
NCAV (Graham) $7.39 $9.90 $14.77 50
Growth DCF
Growth DCF $26.55 $73.48 $150.38 80
Rev-Margin DCF $31.07 $77.33 $171.08 74
Economic Profit
Residual Income $13.82 $16.65 $36.95 76
ROIC Compounder $24.93 $43.51 $61.88 72
Growth Earnings
Growth-Adj P/E $52.48 $74.97 $97.46 68

Widest divergence: Growth Earnings ($74.97) versus Dividend Discount ($9.75). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $7.7B
Revenue growth (YoY) +12.3%
Net margin 6.8%
Return on equity 17.7%
Free cash flow $633M FY2025
P/E ratio 29.3
More key figures
Operating margin 10.6%
EPS (TTM) $2.50
Dividend yield 0.9%
EPS growth (YoY) +62.4%
Net debt $8.1B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 36/100

Of which business quality 42 · Market factors (momentum, volatility) 30

Profitability 42
Margins and returns on capital today
Quality Growth 39
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 49
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 18
Distance to the 52-week high (market factor)
Net Issuance 15
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally.

Full company description

Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows and other accessories under the Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy's brands. The company operates a portfolio of retail brands, including Mattress Firm, Dreams, Tempur-Pedic retail stores, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers. It sells its products through company-owned stores, online, and call centers; and third-party retailers, including third party distribution, hospitality, and healthcare. The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. The company was founded in 1846 and is based in Dallas, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Somnigroup International Inc reported revenue of $7.5B in FY2025 versus $4.9B in FY2021, a compound +11.0%/yr. Reported net income was $384M in FY2025, compounding −11.4%/yr from FY2021.

Growth Quality 87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$7.5B
Latest YoY
+51.6%
Avg. growth/yr (3Y)
+15.0%
Avg. growth/yr (5Y)
+15.3%
Avg. growth/yr (20Y)
+19.4%
Revenue +11.0%/yr
FY21 $4.9B
FY22 $4.9B
FY23 $4.9B
FY24 $4.9B
FY25 $7.5B
Net income −11.4%/yr
FY21 $625M
FY22 $456M
FY23 $368M
FY24 $384M
FY25 $384M

SGI screens 58% overvalued. Compare with Midea Group →

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Cite: Fair Value Calculator (2026). "Somnigroup International Inc Fair Value". https://www.fairvalue-calculator.com/stock/SGI

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Furnishings, Fixtures & Appliances · 311 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 36 · Bottom 25%
Fair Value upside −58% · Bottom 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 11% · Top 25%
Revenue growth 12% · Top 25%
Dividend yield (TTM) 0.9% · Bottom 25%
Debt / equity 1.47× · Higher than 75% of peers

Valuation Multiples vs Furnishings, Fixtures & Appliances median · lower = cheaper

P/E (TTM) 29.3× · Pricier than median
P/B 4.96× · Pricier than 75% of peers
P/S (TTM) 2.01× · Pricier than 75% of peers
P/FCF 24.3× · Pricier than 75% of peers
EV/EBITDA 15.6× · Pricier than median
PEG 0.83× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 62 · sector 0
PAST 71 · sector 19
HEALTH 26 · sector 98
DIVIDEND 17 · sector 55

VALUE 0: the price sits above our fair-value range.

Insider activity: 30/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Furnishings, Fixtures & Appliances stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Midea Group 000333 ¥82.71 ¥107.22 +30%
Gree Electric Appliances, Inc 000651 ¥38.25 ¥88.02 +130%
Haier Smart Home Co 600690 ¥21.46 ¥36.04 +68%
King Slide Works Co 2059 8,655 TWD 1,917 TWD -78%
Guangdong Songfa Ceramics Co 603268 ¥155.59 ¥38.95 -75%
SharkNinja, Inc SN $154.53 $89.07 -42%
Hisense Home Appliances Group 000921 ¥26.33 ¥48.03 +82%
Zhejiang Supor Co 002032 ¥43.85 ¥44.84 +2%
COWAY Co 021240 96,700 KRW 112,530 KRW +16%
Ecovacs Robotics Co 603486 ¥50.13 ¥54.11 +8%

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Frequently asked questions

Is Somnigroup International Inc (SGI) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $27.03 versus a price of $64.87, about −58% (overvalued).
What is the fair value of SGI?
Our model-based fair value for Somnigroup International Inc is $27.03 (as of Jul 16, 2026), built from audited fundamentals. The current price is $64.87.
What is the quality score of SGI?
Somnigroup International Inc has a Quality Score of 36/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Somnigroup International Inc (SGI)?
Somnigroup International Inc reported trailing-twelve-month revenue of about $7.7B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of SGI?
The net profit margin of Somnigroup International Inc is about 6.8%, meaning it keeps roughly 6.8% of revenue as net income. Based on the latest reported figures.
Does Somnigroup International Inc pay a dividend?
Somnigroup International Inc currently shows a dividend yield of about 0.91% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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