Signet Jewelers Ltd (SIG) stock analysis

P/E above its 5-year median

Signet Jewelers's P/E of 13.9 is above its own 5-year median of 10.8.

P/E below the industry

Signet Jewelers's P/E of 13.9 is below the Miscellaneous Retail median of 17.9.

EV/EBITDA above its 5-year median

Signet Jewelers's EV/EBITDA of 6.7 is above its 5-year median of 4.5.

P/B above the industry

Signet Jewelers's price-to-book of 2.52 is above the Miscellaneous Retail median of 2.09.

Trading below fair value

The share price of $120.70 is below our fair value estimate of $123.25.

Margin of safety under 20%

The price is 2.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -4.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.2% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.6% over the last twelve months; the Miscellaneous Retail median is 4.4%.

Guidance raised

Signet Jewelers raised its Updated Fiscal 2027 Adjusted operating income outlook on Sep 9, 2026.

Gross margin slipping

Gross margin was 39.1% over the last twelve months, against 39.5% a year earlier.

Return on equity over 15%

Return on equity was 19.9% over the last twelve months and averaged 28.3% over five years.

Return on capital over 10%

Return on invested capital was 26.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Signet Jewelers's return on equity of 19.9% is above the Miscellaneous Retail median of 18.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was 5.2% over the last twelve months, against a 5-year average of 6.2%.

Net margin above the industry

Signet Jewelers's net margin of 5.2% is above the Miscellaneous Retail median of 4.0%.

No debt

Signet Jewelers has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.64 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.48; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Signet Jewelers paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Signet Jewelers yields 0.6%.

Dividend was cut

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

Covered by earnings

Dividends take 15.0% of net income.

Covered by free cash flow

Dividends take 9.9% of free cash flow.