Somnigroup International Inc. (SGI) AI Stock Analysis

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, adjustable bases, pillows, and other accessories under the Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy's brands. The company operates retail brands including Mattress Firm, Dreams, Tempur-Pedic retail stores, and SOVA. It also licenses its brands and technology to other manufacturers. Sales channels include company-owned stores, online platforms, call centers, and third-party retailers serving distribution, hospitality, and healthcare sectors.

Between FY2021 and FY2024, revenue stayed flat near $4.93B before rising 51.6% to $7.48B in FY2025, yielding a 5-year revenue CAGR of 15.3%. Gross margin stood at 44.4% in FY2025, while net margin reached 5.1% with net income of $384.1M and diluted EPS of $2.69. For the trailing twelve months ended June 30, 2026, revenue totaled $7.62B with an operating margin of 11.1% and net profit margin of 7.0%. In the latest quarter ended June 30, 2026, quarterly revenue fell 3.0% year-over-year, while quarterly earnings grew 10.6%.

As of June 30, 2026, Somnigroup International held $112.0M in cash and short-term investments against $6.41B in total debt, resulting in net debt of $6.30B. The debt-to-equity ratio was 1.99, and the current ratio stood at 0.75. In FY2025, the company generated $800.1M in operating cash flow and $633.2M in free cash flow. Cash deployment in FY2025 included $166.9M in capital expenditures, $132.4M in share buybacks, and $127.4M in dividends paid.

Somnigroup trades at a trailing P/E of 25.3x and a forward P/E of 25.8x, both above the US-listed Consumer Cyclical median of 18.0x trailing and 14.1x forward. Its enterprise value of $19.92B reflects an EV/EBITDA of 16.0x compared to the peer median of 11.1x, and its price-to-sales multiple is 1.9x versus the peer median of 0.7x. The PEG ratio is 0.83. Over the past year, the stock fell 24.5%, trailing the S&P 500 (SPY) gain of 16.8%.

Somnigroup pays a quarterly dividend with an annualized forward rate of $0.68 per share, representing a dividend yield of 1.07%. The payout ratio is 23.2%, and the company has paid dividends for 6 consecutive years. The last ex-dividend date was August 20, 2026.

Wall Street analysts hold 8 Strong Buy and 2 Buy ratings, with no Hold, Sell, or Strong Sell recommendations. The mean price target is $93.44, indicating a 47.0% premium over the October 16, 2026 closing price of $63.58. Consensus estimates anticipate FY2026 revenue of $8.84B and EPS of $3.12, followed by FY2027 revenue of $11.55B and EPS of $3.90. The company beat EPS estimates in 2 of the last 4 quarters, with next earnings scheduled for November 9, 2026.

This page is an AI-written research summary of Somnigroup International Inc. (SGI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SGI income statement, SGI balance sheet, SGI key metrics, SGI analyst forecast, SGI chart. See the SGI stock overview for the latest quote and news.