Somnigroup International Inc.
Somnigroup is the world's largest bedding company, dedicated to enriching people's lives through the power of a good night's sleep and transforming how the world sleeps. With superior capabilities in design, manufacturing, distribution and retail, we deliver breakthrough sleep solutions and serve the evolving needs of consumers in over 100 countries worldwide through our fully-owned businesses,…
$65.99
+$3.12 (+4.96%)
EOD Oct 22, 2026
10.10% operating margin is respectable but not wide. ROIC at 8.75%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 51.6%, still solid. Margins contracted 2.8pp, which offsets some of the top-line progress.
At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 11.73% to 8.75%, capital efficiency is deteriorating.
25.9x earnings, 18.1x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$7.62B
▲ +51.6% YoY
Net Income (TTM)
$533M
Op. Margin
12.48%
▼ -2.8pp YoY
ROIC
7.86%
▼ -3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$769M
▲ +11.2% YoY
Op. Cash Flow (TTM)
$990M
▲ +20.0% YoY
Net Debt
$6.40B
Cash & Equiv.
$112M
5Y CAGR: +15.3%
5Y CAGR: +3.1%
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SourceComputed from the 10-Q filed 4 Aug 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, last close as of 22 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Somnigroup International (SGI) overvalued?
At a P/E of 25.9 and a price-to-free-cash-flow of 18.1, Somnigroup International (SGI) trades above a two-stage DCF intrinsic value of about $45.55 per share, so at $65.99 the stock looks overvalued (31.0% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Somnigroup International scores 53/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 1.0%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Somnigroup International's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $45.55 per share for SGI, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $34.16. At today's $65.99, that puts the stock about 31.0% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Somnigroup International a high-quality business?+
Somnigroup International scores 53 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 12.5% operating margin and a 7.9% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Somnigroup International (SGI) pay a dividend, and how much?+
Yes, Somnigroup International pays a regular dividend of about $0.64 per share per year (typically in quarterly installments), a yield of roughly 1.0% at the current price. That is a payout ratio of about 25.4% of earnings, so the dividend is amply covered by earnings. Somnigroup International has grown the dividend at roughly 19.2% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For SGI's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Somnigroup International a good stock to buy right now?+
That depends on valuation and quality together, not either alone. SGI currently trades above its estimated intrinsic value and scores 53/100 on quality (mixed). It also yields about 1.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Household Furniture
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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