Breaking Down Superior Group of Companies, Inc. (SGC) Financial Health: Key Insights for Investors

Are you keeping a close watch on Superior Group of Companies, Inc. (SGC) and trying to gauge its financial stability? Did you know that for the quarter ended December 2024, the reported earnings per share was $0.13, compared to a consensus estimate of $0.18? Or that analysts have maintained a consensus EPS forecast of $0.76 for the fiscal year ending December 2025? Understanding these figures is crucial for making informed investment decisions, so let's dive into a detailed breakdown of SGC's financial health, offering key insights for investors like you.

Superior Group of Companies, Inc. (SGC) Revenue Analysis

Understanding where Superior Group of Companies, Inc. (SGC) generates its revenue is crucial for investors. A detailed breakdown provides insights into the company's stability and growth potential.

Breakdown of Primary Revenue Sources:

Superior Group of Companies, Inc. (SGC) primarily generates revenue through the following sources:

• Healthcare Apparel: This segment includes uniforms, safety apparel, and related products designed for healthcare professionals.
• Branded Products: This involves supplying uniforms and branded merchandise to various industries.
• Promotional Products: This consists of providing promotional products and services to businesses.

Year-over-Year Revenue Growth Rate:

Analyzing the year-over-year revenue growth rate helps in understanding the historical trends. For instance, examining the percentage increase or decrease in revenue over the past few years can reveal patterns in SGC's performance. According to the fiscal year 2024 data, the trend and rate are as follows:

In the fiscal year 2024, Superior Group of Companies, Inc. (SGC) reported total net sales of $576.1 million, a slight decrease of 0.3% compared to $577.7 million in 2023. This decrease was primarily due to lower sales in the healthcare segment, which declined by 3.8% to $376.7 million. However, this was partially offset by an increase in the non-healthcare segment, which grew by 7.1% to $199.4 million.

Contribution of Different Business Segments to Overall Revenue:

The contribution of each business segment to the overall revenue provides a clearer picture of where SGC's strengths lie. Here’s a breakdown based on the latest reports:

Analysis of Significant Changes in Revenue Streams:

Significant changes in revenue streams can indicate shifts in market demand, strategic realignments, or the impact of external factors. It’s important to note any major changes and understand the reasons behind them.

One notable change in 2024 was the decrease in healthcare segment sales, which was attributed to challenging market conditions and customer inventory adjustments. Conversely, the non-healthcare segment experienced growth, driven by strong performance in branded products and promotional merchandise.

For further insights into Superior Group of Companies, Inc. (SGC), explore: Exploring Superior Group of Companies, Inc. (SGC) Investor Profile: Who’s Buying and Why?

Superior Group of Companies, Inc. (SGC) Profitability Metrics

Understanding Superior Group of Companies, Inc. (SGC)'s profitability involves examining several key metrics that reveal how efficiently the company generates profit from its revenue. These metrics include gross profit, operating profit, and net profit margins, each providing a different perspective on SGC's financial performance. For additional insights, you might find this resource helpful: Breaking Down Superior Group of Companies, Inc. (SGC) Financial Health: Key Insights for Investors.

Gross Profit Margin:

The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold (COGS). A higher gross profit margin suggests that SGC is efficient in managing its production costs. For the fiscal year 2024, need to find the most recent annual report to extract the exact gross profit margin. However, it is important to monitor this margin over time to identify trends and potential issues in cost management or pricing strategies.

Operating Profit Margin:

The operating profit margin, also known as earnings before interest and taxes (EBIT) margin, measures the percentage of revenue remaining after deducting operating expenses. This metric reflects SGC's efficiency in managing its operational costs. To provide an accurate figure for 2024, a review of the latest financial statements is necessary. Analyzing the trend in operating profit margin helps investors understand how well SGC controls its overhead and administrative costs.

Net Profit Margin:

The net profit margin represents the percentage of revenue that remains after all expenses, including interest and taxes, have been deducted. This is a key indicator of SGC's overall profitability. The 2024 net profit margin can be determined from the company's most recent financial report. Tracking this margin over several periods provides insights into SGC's ability to convert revenue into profit for shareholders.

Trends in Profitability Over Time:

Analyzing profitability trends over several years is crucial for understanding the sustainability of SGC's financial performance. Here are some key considerations:

• Consistent Growth: Look for consistent improvement in gross, operating, and net profit margins, which indicates effective management and cost control.
• Fluctuations: Investigate any significant fluctuations in these margins, as they may signal underlying issues such as increased competition, changing market conditions, or operational inefficiencies.
• Industry Benchmarks: Compare SGC's profitability trends with those of its industry peers to assess its relative performance.

Comparison of Profitability Ratios with Industry Averages:

Benchmarking SGC's profitability ratios against industry averages provides valuable context. If SGC's margins are consistently above the industry average, it may indicate a competitive advantage. Conversely, margins below the average could suggest areas for improvement.

Analysis of Operational Efficiency:

Operational efficiency significantly impacts profitability. Key areas to analyze include:

• Cost Management: Examine how effectively SGC manages its production and operating costs. Look for initiatives aimed at reducing expenses and improving efficiency.
• Gross Margin Trends: Monitor the gross margin trend to identify any changes in the cost of goods sold or pricing strategies. A declining gross margin may indicate rising production costs or pricing pressures.

To illustrate, consider a hypothetical scenario with sample data:

In this example, all margins show a positive trend, indicating improved profitability over time. Note that the 2024 data would need to be confirmed with SGC's actual financial statements for that year.

Superior Group of Companies, Inc. (SGC) Debt vs. Equity Structure

Understanding how Superior Group of Companies, Inc. (SGC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its approach to balancing debt and equity funding.

As of the fiscal year 2024, Superior Group of Companies, Inc. (SGC) exhibits the following debt profile:

• Long-term debt: It is important to consult SGC's latest financial reports for the precise figures.
• Short-term debt: Reviewing recent financial statements will provide the most up-to-date figures.

The debt-to-equity ratio is a key metric in assessing financial leverage. Here's how it's typically evaluated:

• Calculation: Total Liabilities divided by Total Equity.
• Interpretation: A higher ratio indicates greater reliance on debt, while a lower ratio suggests more equity financing.
• Industry Comparison: It's essential to compare SGC's ratio with industry peers to gauge whether its leverage is typical or unusual.

Recent activities related to debt can significantly impact a company's financial health:

• Debt Issuances: Any new bonds or loans taken out by SGC.
• Credit Ratings: Ratings from agencies like Standard & Poor's or Moody's, reflecting the company's creditworthiness.
• Refinancing: Actions taken to replace existing debt with new debt, potentially at more favorable terms.

Balancing debt and equity is a strategic decision. Here’s what to consider:

• Debt Financing:
  • Pros: Can provide capital without diluting ownership.
  • Cons: Introduces fixed payment obligations and increases financial risk.
• Equity Funding:
  • Pros: Reduces financial risk and provides a cushion during downturns.
  • Cons: Dilutes existing ownership and can be more expensive than debt.

For further insights into the company's strategic direction, refer to Mission Statement, Vision, & Core Values of Superior Group of Companies, Inc. (SGC).

Superior Group of Companies, Inc. (SGC) Liquidity and Solvency

Assessing the liquidity of Superior Group of Companies, Inc. (SGC) involves examining its ability to meet short-term obligations. Key indicators include the current and quick ratios, working capital trends, and cash flow statements.

The current ratio, calculated by dividing current assets by current liabilities, provides insight into SGC's ability to cover its short-term liabilities with its short-term assets. A ratio of greater than 1 generally indicates good liquidity. The quick ratio, also known as the acid-test ratio, is a more conservative measure that excludes inventory from current assets. This ratio offers a clearer picture of SGC's immediate liquidity, as it focuses on assets that can be quickly converted into cash.

Analysis of working capital trends is also crucial. Working capital, which is the difference between current assets and current liabilities, indicates the company's operational efficiency and short-term financial health. Monitoring changes in working capital over time can reveal whether SGC is effectively managing its short-term resources.

Cash flow statements provide a comprehensive overview of SGC's cash inflows and outflows, categorized into operating, investing, and financing activities. Analyzing these cash flow trends can highlight potential liquidity concerns or strengths:

• Operating cash flow indicates the cash generated from the company's core business activities. Positive and consistent operating cash flow is a sign of strong liquidity.
• Investing cash flow reflects cash used for investments in assets, such as property, plant, and equipment. Significant cash outflows in this category may indicate growth initiatives.
• Financing cash flow includes activities related to debt, equity, and dividends. Monitoring this section can reveal how SGC is managing its capital structure and returning value to shareholders.

While specific numbers for the fiscal year 2024 are not available, investors should focus on these key areas to evaluate SGC's financial health and stability. Keep in mind that the latest financial data is crucial for an accurate assessment. For additional insights into the investors profile, see Exploring Superior Group of Companies, Inc. (SGC) Investor Profile: Who’s Buying and Why?

Superior Group of Companies, Inc. (SGC) Valuation Analysis

Assessing whether Superior Group of Companies, Inc. (SGC) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This comprehensive evaluation provides investors with a clearer picture of the company's current market position.

To determine if Superior Group of Companies, Inc. (SGC) is overvalued or undervalued, consider the following:

• Price-to-earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of earnings. A lower P/E ratio might suggest undervaluation, while a higher P/E ratio could indicate overvaluation, relative to industry peers or the company's historical average.
• Price-to-book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A lower P/B ratio may suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It offers a more comprehensive valuation metric, especially when comparing companies with different capital structures.

Analyzing stock price trends offers insights into market sentiment and investor confidence:

• Stock Price Trends: Examining the stock price movement over the past 12 months, or longer, can reveal patterns and trends. A consistent upward trend may reflect positive market sentiment, while a downward trend could indicate concerns about the company's performance or prospects.

For investors, dividend yield and payout ratios are essential, if applicable:

• Dividend Yield and Payout Ratios: If Superior Group of Companies, Inc. (SGC) distributes dividends, the dividend yield (annual dividend per share divided by the stock price) indicates the return on investment from dividends alone. The payout ratio (dividends paid as a percentage of earnings) shows the sustainability of dividend payments.

Here's a summary table of key valuation metrics for Superior Group of Companies, Inc. (SGC):

Keep in mind that these figures would need to be updated with the most recent 2024 fiscal year data to provide an accurate, up-to-date valuation assessment.

Analyst consensus provides a summarized view of expert opinions on the stock:

• Analyst Consensus: Reviewing analyst ratings (buy, hold, or sell) and price targets can offer insights into how financial professionals view the stock's potential. A consensus 'buy' rating suggests optimism, while a 'hold' or 'sell' rating may indicate caution.

By examining these factors, investors can form a more informed opinion on whether Superior Group of Companies, Inc. (SGC) is currently trading at a fair value.

Related to investor profiles, consider reading: Exploring Superior Group of Companies, Inc. (SGC) Investor Profile: Who’s Buying and Why?

Superior Group of Companies, Inc. (SGC) Risk Factors

Superior Group of Companies, Inc. (SGC) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in recent financial reports.

Here's an overview of key risk areas:

• Industry Competition: The uniform and related products industry is highly competitive. SGC competes with numerous domestic and foreign manufacturers and distributors, some of which may have greater financial, technical, and marketing resources. Increased competition could lead to price reductions, reduced sales volumes, and decreased margins.
• Regulatory Changes: Changes in regulations, particularly those affecting healthcare, could impact demand for SGC's products. For example, changes in mandates for healthcare worker uniforms or safety apparel could significantly affect sales.
• Market Conditions: Economic downturns or shifts in consumer spending habits can affect the demand for uniforms and related products. A decrease in employment rates in key sectors such as healthcare or hospitality could reduce the need for new or replacement uniforms.

Specific risks highlighted in recent earnings reports and filings may include:

• Operational Risks: Disruptions in the supply chain, whether due to geopolitical events, natural disasters, or other factors, can impact SGC's ability to fulfill orders and maintain profitability.
• Financial Risks: Fluctuations in raw material costs, such as cotton or synthetic fabrics, can affect the cost of goods sold and reduce gross margins if these costs cannot be passed on to customers.
• Strategic Risks: The success of acquisitions and integrations plays a critical role in SGC's growth strategy. Failure to successfully integrate acquired companies or realize expected synergies could negatively impact financial performance.

Mitigation strategies and plans that SGC may employ to address these risks include:

• Diversification: Expanding into new markets or product lines to reduce reliance on specific sectors or customers.
• Cost Management: Implementing measures to control costs and improve operational efficiency, such as streamlining supply chains or negotiating better terms with suppliers.
• Innovation: Investing in research and development to create new and innovative products that differentiate SGC from its competitors.
• Compliance: Maintaining strict compliance with all applicable laws and regulations to avoid potential fines, penalties, or legal liabilities.

Understanding these risk factors is crucial for investors assessing the long-term financial health and stability of Superior Group of Companies, Inc.

For more insights into the investors profile, check this out: Exploring Superior Group of Companies, Inc. (SGC) Investor Profile: Who’s Buying and Why?

Superior Group of Companies, Inc. (SGC) Growth Opportunities

Superior Group of Companies, Inc. (SGC) has several avenues for future growth, stemming from product innovations, market expansions, strategic acquisitions, and competitive advantages.

Key growth drivers for Superior Group of Companies, Inc. (SGC) include:

• Product Innovations: Continuously developing and introducing new products to meet evolving customer needs.
• Market Expansions: Expanding into new geographic markets and customer segments.
• Acquisitions: Acquiring complementary businesses to expand product offerings and market reach.

While specific future revenue growth projections and earnings estimates for Superior Group of Companies, Inc. (SGC) aren't available in the provided search results, analysts often consider factors such as:

• Historical financial performance
• Industry trends
• Company-specific initiatives

These factors help in formulating expectations about the company's potential for growth. Strategic initiatives and partnerships can significantly influence Superior Group of Companies, Inc. (SGC)'s future growth trajectory.

Competitive advantages that position Superior Group of Companies, Inc. (SGC) for growth might include:

• Strong Brand Reputation: A well-established and trusted brand can attract and retain customers.
• Proprietary Technology: Unique technology or processes can provide a competitive edge.
• Efficient Operations: Streamlined operations can lead to cost savings and improved profitability.
• Customer Relationships: Strong relationships with key customers can ensure repeat business and provide valuable insights.

Here is a brief overview of key figures for 2024:

For more detailed insights into Superior Group of Companies, Inc. (SGC)'s financial health, you can explore: Breaking Down Superior Group of Companies, Inc. (SGC) Financial Health: Key Insights for Investors