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what it is
It makes mattresses and neck pillows, then sells them through stores and direct channels in about 100 countries.
how it gets paid
Last year Sgi made $7.5B in revenue.
why it's growing
Revenue grew 51.6% last year. Sales advanced to $1.87 billion, up 55% vs. prior year, driven by the mattress firm acquisition.
what just happened
SGI beat by 40.43%, with Yahoo showing $0.66 EPS versus $0.47 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
55/100 earnings predictability — expect surprises
47.5x trailing p/e — you're paying up for this one
0.9% dividend yield — cash in your pocket every quarter
11.5% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
It makes mattresses and neck pillows, then sells them through stores and direct channels in about 100 countries.
63% of sales come through direct channels, meaning it sells to you without a retailer taking the first bite. So the company keeps more control over price and the customer relationship. Contrast that with wholesale at 37%, where someone else still helps move the box but takes a cut.
How they make money
$7.5B
annual revenue · their business grew +51.6% last year
total revenue
$7.5B
+51.6%
The products that matter
manufactures and sells sleep products
mattresses and pillows
$7.5B revenue · +51.6% growth
it's the whole reported business on this page. That's why the debate is less about product mix and more about whether that bigger revenue base starts producing better earnings.
entire business
Key numbers
$7.5B
annual revenue
That is the size of the business after a 51.6% jump. Bigger sales buy time, but they do not erase the valuation.
47.5x
trailing p/e
You pay $47.50 for $1 of trailing profit. That is a luxury price for a mattress maker.
17.5%
operating margin
About 18 cents of each sales dollar stays after operating costs. A 1-point slip costs about $75M on $7.5B of sales.
$4.6B
long-term debt
That is 20% of capital. The balance sheet is not broken, but it is carrying the acquisition.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- long-term debt $4.6B (20% of capital)
- net profit margin 9.5% — keeps 10 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SGI 3 years ago → it's now worth $20,900.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
SGI beat by 40.43%, with Yahoo showing $0.66 EPS versus $0.47 expected.
EDGAR's latest quarter shows $5.6B revenue and 42.1% gross margin. EDGAR also lists $1.17 EPS, so the reported EPS numbers do not line up across sources.
$5.6B
revenue
$0.66
eps
42.1%
gross margin
EPS surprise
The 40.43% beat matters because the stock already trades at 47.5x trailing earnings, so execution has to keep showing up.
-
somnigroup international posted strong fourth-quarter results.
-
sales advanced to $1.87 billion, up 55% vs. prior year, driven by the mattress firm acquisition.
-
mattress firm’s same-store sales were flat, outperforming the broader u.s. bedding sector.
-
tempur sealy’s north american wholesale channel expanded about 6%, while the direct-to-consumer arm slipped 7%.
-
internationally, the business rose 13%, capturing share across europe and asia.
source: company earnings report, 2026
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What could go wrong
the pressure point here is simple: SGI got a lot bigger, but the profit profile has not caught up yet.
med
mattress firm integration and margin recovery
revenue climbed 51.6% last year, but full-year EPS fell 15% and the latest quarter ran at a 5.1% margin. If the bigger revenue base does not turn into better profitability, the stock stops looking early and starts looking expensive.
5.1% latest-quarter margin versus 7.9% annual net margin — that gap is the pressure point
med
consumer demand softness in direct-to-consumer
north american wholesale grew about 6%, but direct-to-consumer fell 7%. That tells you demand is not healthy everywhere, and mattresses are not an impulse category people buy just because the quarter needs help.
-7% direct-to-consumer performance is the warning sign
med
debt reduces room for error
$4.6B in long-term debt is manageable with a B+ balance sheet, but it gives SGI less freedom if revenue growth cools before margins recover. Bigger businesses get less forgiving when the balance sheet is carrying work too.
$4.6B in debt and 20% of capital tied to borrowings
med
tariff and supply chain pressure
management already flags tariff and supply chain pressure, and this business earns a 7.9% net margin, not a software margin. When costs rise in a business like this, the math gets ugly fast.
7.9% net margin leaves less cushion than the top-line growth suggests
$7.5B in revenue makes the story look sturdy. A 7.9% annual net margin and 5.1% latest-quarter margin say the earnings engine still needs tuning.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
quarterly margin recovery
the latest quarter posted a 5.1% margin versus a 7.9% annual net margin. if that gap does not close, the earnings catch-up story gets weaker fast.
trend
same-store sales at mattress firm
same-store sales were flat. you want to see flat turn positive without needing another big revenue step-up to distract from it.
risk
direct-to-consumer weakness
north american direct-to-consumer fell 7%. if that channel keeps shrinking, wholesale strength has to carry more of the story.
calendar
next earnings print
this is the report where investors will ask a simpler question than revenue growth: did more of the sales finally drop to the bottom line.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts think the stock is moving with the pack, not leading it.
risk profile
average
stability score 3 means typical stock risk. not a bunker stock, not a chaos stock.
chart momentum
average
technical score 3 says the chart is fine, but there is no special signal here.
earnings predictability
55 / 100
predictability at 55/100 means the business can surprise you. recent revenue and EPS trends already have.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 217 buyers vs. 140 sellers in 4q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$65
$133
$87
current price
$99
target midpoint · +13% from current · 3-5yr high: $115 (+30% · 8% ann'l return)
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