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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,…
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.
ROIC dropped from 11.73% to 8.75%, capital efficiency is deteriorating. Net debt of $6.68B represents 10.6x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$7.67B
▲ +51.6% YoY
Net Income (TTM)
$521M
Op. Margin
12.10%
▼ -2.8pp YoY
ROIC
7.97%
▼ -3.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$737M
▲ +11.2% YoY
Op. Cash Flow (TTM)
$940M
▲ +20.0% YoY
Net Debt
$6.53B
Cash & Equiv.
$111M
5Y CAGR: +15.3%
5Y CAGR: +3.1%
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