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what it is
Superior Group sells branded merchandise, healthcare apparel, and outsourced call-center support to businesses.
how it gets paid
Last year Superior made $566M in revenue. Branded Products - Promotional Merchandise was the main engine at $220M, or 39% of sales.
why it's growing
Revenue grew 0.1% last year. Revenue rose 203% vs. prior year, and EPS rose 28% vs. prior year.
what just happened
Revenue hit $420M and EPS reached $0.23 while gross margin held at 37.9%.
At a glance
C++ balance sheet — some cracks in the foundation
35/100 earnings predictability — expect surprises
27.7x trailing p/e — priced about right
5.6% dividend yield — cash in your pocket every quarter
5.4% return on capital — nothing to write home about
xvary composite: 34/100 — weak
What they do
Superior Group sells branded merchandise, healthcare apparel, and outsourced call-center support to businesses.
Superior wins by splitting one company across 3 businesses. That gives you 3 revenue taps, not 1. The markets are fragmented, meaning lots of small rivals and no single bully. It also has 7,100 employees, so the operating muscle is already in place.
How they make money
$566M
annual revenue · their business grew +0.1% last year
Branded Products - Promotional Merchandise
$220M
+1.0%
Branded Products - Uniform Programs
$80M
+2.0%
Healthcare Apparel - Scrubs and Lab Coats
$150M
1.0%
Healthcare Apparel - Patient Gowns
$40M
+0.5%
Contact Centers - Outsourced Support
$76M
+0.1%
The products that matter
uniforms and promo distribution
Branded Products
$366M · 65% of revenue
this is the core business at $366M, but it grew only 0.1% last year. If this segment stays sleepy, you do not get much help from the rest of the company.
65% of revenue
medical uniforms and apparel
Healthcare Apparel
$142M · about 25% of revenue
at $142M, this is roughly a quarter of sales. Flat growth makes it a stabilizer. It is not the part of the business dragging the story higher.
~25% of revenue
outsourced customer support
Contact Centers
$58M · about 10% of revenue
this $58M business is small enough that even solid execution helps at the margin more than it changes the thesis. Useful support, not the engine.
~10% of revenue
Key numbers
$566M
annual sales
You get $566M of sales from a company worth about $158M. That gap is the whole story.
5.6%
dividend yield
You are being paid 5.6% to wait. That is real cash, not hope.
6.0%
operating margin
You keep 6.0 cents of operating profit per sales dollar. That is thin, so small shocks matter.
$102M
long-term debt
You have $102M of debt sitting on a $158M company. That is a lot of borrowed confidence.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 25 / 100
- long-term debt $102M (39% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for SGC right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $420M and EPS reached $0.23 while gross margin held at 37.9%.
Revenue rose 203% vs. prior year, and EPS rose 28% vs. prior year. The margin held up even with a bigger sales base.
$420M
revenue
$0.23
eps
37.9%
gross margin
the number that mattered
37.9% gross margin means 37.9 cents of every sales dollar stayed after direct costs.
source: company earnings report, 2026
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What could go wrong
SGC does not have much room for two problems at once. Thin margins, $102M of long-term debt, and a dividend-heavy stock story make the weak spots pretty easy to find.
high
china sourcing and tariff exposure
management has already highlighted heavy sourcing from china. That matters in an apparel and uniforms business where input costs show up fast and passing them through is not guaranteed.
if tariffs or supply disruption hit, the 36.9% gross margin can move the wrong way quickly.
med
slow core segment growth
Branded Products produced $366M of revenue and grew only 0.1%. When the largest segment stalls, the rest of the portfolio has to do more work than it looks built to do.
missing the up-to-$585M 2026 revenue target would reinforce that this is an income stock with limited organic growth.
med
balance sheet pressure
SGC carries $102M of long-term debt against a $158M market cap. That is not a crisis number by itself. It does mean execution misses hit harder here than they would in a sturdier business.
if earnings soften, the 5.6% yield stops feeling generous and starts feeling like an obligation.
med
financial reporting scrutiny
company filings reference heightened SEC and auditor scrutiny around financial reporting. Even if nothing breaks, that is the kind of disclosure that raises the discount rate on a small cap.
the damage here is trust: delayed filings, a restatement, or investors deciding the stock deserves a cheaper multiple.
$102M of long-term debt against a $158M market cap leaves less room for a margin squeeze, a sourcing shock, or a reporting problem to show up at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
financials
the $585M revenue target
management's 2026 target implies only about 3% growth above the current $566M base. That sounds modest because it is. It is also the cleanest near-term test of whether the story is actually improving.
profitability
gross margin after 36.9%
SGC says margins should improve. If the next few quarters stay stuck around 36.9%, the earnings repair story gets a lot less persuasive.
supply chain
china sourcing headlines
this company is too small and too margin-sensitive to shrug off tariff changes or sourcing disruption. You do not need a full crisis to get a worse outcome here.
next report
the next earnings print
management says growth should be more back-half weighted. The next quarter matters because you want early proof, not another promise that the real acceleration is still later.
Analyst rankings
earnings predictability
35 / 100
earnings can swing more than you'd like. in human-speak, analysts do not see this as a clean, easy-to-model business.
balance sheet strength
C++
below average balance sheet grade. translated: this is enough balance sheet to operate, not enough to make mistakes for free.
risk rank
4
safer than only 20% of stocks. you should treat this like a small cap with real execution risk, because that is exactly what it is.
source: institutional data
Institutional activity
institutional ownership data for SGC is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$10
current price
n/a
target midpoint · n/a from current
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