Superior Group of Companies, Inc. (SGC) stock analysis

P/E above its 5-year median

Superior Group of Companies's P/E of 25.6 is above its own 5-year median of 22.1.

P/E above the industry

Superior Group of Companies's P/E of 25.6 is above the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 21.3.

EV/EBITDA above its 5-year median

Superior Group of Companies's EV/EBITDA of 10.8 is above its 5-year median of 9.7.

P/B below the industry

Superior Group of Companies's price-to-book of 1.14 is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 1.49.

Trading below fair value

The share price of $13.85 is below our fair value estimate of $14.32.

Margin of safety under 20%

The price is 3.3% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 43.8% over the last twelve months, against a 5-year average of -29.8% a year.

Growing faster than the industry

Revenue grew 2.9% over the last twelve months; the Apparel and Other Finished Products Made from Fabrics and Similar Materials median is 2.3%.

Guidance unchanged

The latest outlook (full-year 2026 net sales, Aug 4, 2026) was maintained, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 37.6% over the last twelve months, against 37.7% a year earlier.

Return on equity under 15%

Return on equity was 4.2% over the last twelve months and averaged 2.6% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity below the industry

Superior Group of Companies's return on equity of 4.2% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 8.3%.

Earnings shrank over 5 years

Net income shrank 29.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 1.4% over the last twelve months, against a 5-year average of 1.0%.

Net margin below the industry

Superior Group of Companies's net margin of 1.4% is below the Apparel and Other Finished Products Made from Fabrics and Similar Materials median of 2.8%.

High debt

Debt is 40.4% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 45.7% five years ago to 40.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 62.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.61 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Superior Group of Companies paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Superior Group of Companies yields 4.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Not covered by earnings

Dividends take 108% of net income, leaving little room.

Covered by free cash flow

Dividends take 19.1% of free cash flow.