DB:SQB

Stock Analysis Report

Sequential Brands Group

Executive Summary

Sequential Brands Group, Inc. owns a portfolio of consumer brands in the home, active, and fashion categories in the United States and internationally.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Sequential Brands Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SQB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.2%

SQB

-4.6%

DE Luxury

0.7%

DE Market


1 Year Return

-61.9%

SQB

30.2%

DE Luxury

9.9%

DE Market

Return vs Industry: SQB underperformed the German Luxury industry which returned 30.2% over the past year.

Return vs Market: SQB underperformed the German Market which returned 9.9% over the past year.


Shareholder returns

SQBIndustryMarket
7 Day19.2%-4.6%0.7%
30 Day53.8%-3.7%5.9%
90 Day49.9%1.2%12.0%
1 Year-61.9%-61.9%32.3%30.2%13.4%9.9%
3 Year-93.2%-93.2%101.7%91.2%25.8%14.7%
5 Year-96.5%-96.5%226.3%188.8%42.6%23.2%

Price Volatility Vs. Market

How volatile is Sequential Brands Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sequential Brands Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SQB (€0.36) is trading below our estimate of fair value (€1)

Significantly Below Fair Value: SQB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SQB is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: SQB is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SQB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SQB is good value based on its PB Ratio (0.2x) compared to the DE Luxury industry average (1.7x).


Next Steps

Future Growth

How is Sequential Brands Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.5%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sequential Brands Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sequential Brands Group performed over the past 5 years?

-49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SQB has large one-off items impacting its financial results.

Growing Profit Margin: SQB's current net profit margins (-16.2%) are higher than last year (-115.7%).


Past Earnings Growth Analysis

Earnings Trend: SQB is unprofitable, and losses have increased over the past 5 years at a rate of -49.7% per year.

Accelerating Growth: Unable to compare SQB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SQB is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-0.9%).


Return on Equity

High ROE: SQB has a negative Return on Equity (-16.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sequential Brands Group's financial position?


Financial Position Analysis

Short Term Liabilities: SQB's short term assets ($61.2M) exceeds its short term liabilities ($46.5M)

Long Term Liabilities: SQB's short term assets (61.2M) do not cover its long term liabilities (496.9M)


Debt to Equity History and Analysis

Debt Level: SQB's debt to equity ratio (239.3%) is considered high

Reducing Debt: SQB's debt to equity ratio has increased from 68.7% to 239.3% over the past 5 years.


Balance Sheet

Inventory Level: SQB has a low level of unsold assets or inventory.

Debt Coverage by Assets: SQB's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SQB has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SQB is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -14.4% per year.


Next Steps

Dividend

What is Sequential Brands Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SQB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SQB's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SQB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SQB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SQB's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Sequential Brands Group's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Sequential Brands Group has no CEO, or we have no data on them.


Management Age and Tenure

1.5yrs

Average Tenure

60yo

Average Age

Experienced Management: SQB's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

6.5yrs

Average Tenure

64yo

Average Age

Experienced Board: SQB's board of directors are considered experienced (6.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$363,71318 Oct 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares1,111,837
Max PriceUS$0.33
SellUS$363,71318 Oct 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares1,111,837
Max PriceUS$0.33
BuyUS$85,11330 May 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares141,612
Max PriceUS$0.61
BuyUS$17,31616 May 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares24,778
Max PriceUS$0.71
BuyUS$39,99003 May 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares52,460
Max PriceUS$0.77
BuyUS$271,12318 Apr 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares329,712
Max PriceUS$0.82
BuyUS$57,17108 Mar 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares45,888
Max PriceUS$1.25
BuyUS$283,97804 Mar 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares220,000
Max PriceUS$1.29
BuyUS$298,09602 Jan 19
Prescott Group Capital Management L.L.C.
EntityCompany
Shares480,818
Max PriceUS$0.69
BuyUS$422,30528 Dec 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares706,010
Max PriceUS$0.61
BuyUS$30,35821 Dec 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares46,966
Max PriceUS$0.66
BuyUS$2,45618 Dec 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares3,554
Max PriceUS$0.70
BuyUS$90,45912 Dec 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares118,195
Max PriceUS$0.77
BuyUS$2,58404 Dec 18
Stewart Leonard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$0.86
BuyUS$41,70929 Nov 18
Stewart Leonard
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares48,020
Max PriceUS$0.87
BuyUS$9,66926 Nov 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares11,942
Max PriceUS$0.82
BuyUS$395,18221 Nov 18
Prescott Group Capital Management L.L.C.
EntityCompany
Shares476,799
Max PriceUS$0.84

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Karen Murray (62yo)

    Senior Advisor

    • Tenure: 0.08yrs
    • Compensation: US$1.08m
  • Karen Castellano

    President of Fashion Division

    • Tenure: 1.4yrs
  • Noah Gelbart

    Senior Vice President

    • Tenure: 0yrs
  • Eddie Esses (60yo)

    Division President of Active

    • Tenure: 0yrs
  • Charles Bang

    Corporate Controller

    • Tenure: 6.6yrs
  • Chad Wagenheim

    President

    • Tenure: 0.08yrs
  • Eric Gul

    General Counsel

    • Tenure: 3.6yrs
  • Peter Lops (49yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: US$1.33m

Board Members

  • Rodney Cohen (53yo)

    Independent Director

    • Tenure: 5.3yrs
  • Martha Stewart (77yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$5.93m
  • Gary Johnson (64yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$200.00k
  • Aaron Hollander (63yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$225.00k
  • Al Gossett (66yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$200.00k
  • Bill Sweedler (52yo)

    Chairman

    • Tenure: 7.8yrs
  • Stew Leonard (64yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: US$200.00k

Company Information

Sequential Brands Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sequential Brands Group, Inc.
  • Ticker: SQB
  • Exchange: DB
  • Founded: 1982
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: US$27.900m
  • Listing Market Cap: US$25.277m
  • Shares outstanding: 64.88m
  • Website: https://www.sequentialbrandsgroup.com

Number of Employees


Location

  • Sequential Brands Group, Inc.
  • 601 West 26th Street
  • 9th Floor
  • New York
  • New York
  • 10001
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SQBGNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1987
SQBDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987

Biography

Sequential Brands Group, Inc. owns a portfolio of consumer brands in the home, active, and fashion categories in the United States and internationally. It offers products in the apparel, footwear, eyewear, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 21:37
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.