DB:SL2

Stock Analysis Report

Executive Summary

Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States.

Snowflake

Fundamentals

Solid track record with limited growth.

Risks

  • Sleep Number has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Sleep Number's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

DB:SL2

-5.7%

DE Specialty Retail

-1.6%

DE Market


1 Year Return

n/a

DB:SL2

-13.0%

DE Specialty Retail

-10.5%

DE Market

No trading data on SL2.

No trading data on SL2.


Share holder returns

SL2IndustryMarket
7 Day-0.2%-5.7%-1.6%
30 Day4.9%-8.0%-5.4%
90 Day30.1%-6.9%-6.0%
1 Yearn/a-11.2%-13.0%-7.7%-10.5%
3 Yearn/a-22.3%-54.8%9.4%-0.02%
5 Yearn/a-8.9%-54.0%25.5%8.1%

Price Volatility Vs. Market

How volatile is Sleep Number's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Sleep Number undervalued based on future cash flows and its price relative to the stock market?

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sleep Number's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sleep Number's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Sleep Number is overvalued based on earnings compared to the DE Specialty Retail industry average.

Sleep Number is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Sleep Number is poor value based on expected growth next year.


Price Based on Value of Assets

Sleep Number has negative assets, we can't compare the value of its assets to the DE Specialty Retail industry average.


Next Steps

Future Growth

How is Sleep Number expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sleep Number's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Sleep Number's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).

Sleep Number's revenue growth is positive but not above the Germany market average.

Sleep Number's earnings growth is positive but not above the Germany market average.

Sleep Number's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Sleep Number is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Sleep Number performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sleep Number's year on year earnings growth rate has been positive over the past 5 years.

Sleep Number's 1-year earnings growth exceeds its 5-year average (14.2% vs 2.3%)

Sleep Number's earnings growth has exceeded the DE Specialty Retail industry average in the past year (14.2% vs -0.4%).


Return on Equity

It is difficult to establish if Sleep Number has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

Sleep Number used its assets more efficiently than the DE Specialty Retail industry average last year based on Return on Assets.


Return on Capital Employed

Sleep Number has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sleep Number's financial position?


Financial Position Analysis

Sleep Number's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Sleep Number's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Sleep Number has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Sleep Number's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (61.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 10.6x coverage).


Balance Sheet

High level of physical assets or inventory.

Sleep Number has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Sleep Number's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Sleep Number's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Sleep Number's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Sleep Number has not reported any payouts.

Unable to verify if Sleep Number's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Sleep Number has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Sleep Number's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Sleep Number's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Shelly Ibach (59yo)

7.2yrs

Tenure

US$4,432,704

Compensation

Ms. Shelly R. Ibach has been the Chief Executive Officer and President at Select Comfort Corporation since June 1, 2012 and served as its Chief Operating Officer from June 15, 2011 to June, 2012. Ms. Ibach ...


CEO Compensation Analysis

Shelly's remuneration is higher than average for companies of similar size in Germany.

Shelly's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

50yo

Average Age

The average tenure for the Sleep Number management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

11.5yrs

Average Tenure

59yo

Average Age

The average tenure for the Sleep Number board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Sleep Number individual insiders in the past 3 months.


Recent Insider Transactions

Buy€60,19723 May 19
David Callen
EntityIndividual
Role
CFO & Senior VP
Shares2,000
Max Price€30.10
Sell€134,07920 Feb 19
Kevin Brown
EntityIndividual
Role
Senior VP & Chief Marketing Officer
Shares3,500
Max Price€38.31
Sell€77,90220 Feb 19
Brenda Lauderback
EntityIndividual
Role
Member of the Board of Directors
Shares2,058
Max Price€37.85
Sell€527,48720 Feb 19
Suresh Krishna
EntityIndividual
Role
Senior VP and Chief Operations
Shares14,025
Max Price€37.61
Sell€98,17827 Nov 18
Andrew Carlin
EntityIndividual
Shares3,000
Max Price€32.73
Sell€164,50227 Nov 18
Kathleen Nedorostek
EntityIndividual
Shares5,000
Max Price€32.90
Sell€102,39706 Nov 18
Andrew Carlin
EntityIndividual
Shares3,000
Max Price€34.13

Ownership Breakdown


Management Team

  • Kevin Brown (50yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 5.6yrs
    • Compensation: $995.71k
  • Joseph Saklad (49yo)

    Senior VP & Chief Information Officer

    • Tenure: 6.7yrs
  • Annie Bloomquist (49yo)

    Chief Product Officer & Senior VP

    • Tenure: 7.2yrs
    • Compensation: $1.01m
  • Shelly Ibach (59yo)

    CEO, President & Executive Director

    • Tenure: 7.2yrs
    • Compensation: $4.43m
  • Dave Schwantes

    Vice President of Finance

  • Suresh Krishna (50yo)

    Senior VP and Chief Operations

    • Tenure: 3.3yrs
    • Compensation: $1.48m
  • David Callen (52yo)

    CFO & Senior VP

    • Tenure: 5.3yrs
    • Compensation: $1.13m
  • Sam Hellfeld

    Senior VP

    • Tenure: 1.6yrs
  • Melissa Barra (46yo)

    Senior VP

    • Tenure: 0.2yrs
  • Bob Poirier

    Chief Accounting Officer

    • Tenure: 12.5yrs

Board Members

  • Stephen Gulis (62yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: $193.61k
  • Rebecca Cole

    Member of Sleep Number Quality - Life Advisory Board

    • Tenure: 11.5yrs
  • Robi Ludwig

    Member of Sleep Number Quality - Life Advisory Board

    • Tenure: 11.5yrs
  • John Ellis

    Member of Sleep Number Quality - Life Advisory Board

    • Tenure: 11.5yrs
  • Mike Peel (69yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: $200.88k
  • Shelly Ibach (59yo)

    CEO, President & Executive Director

    • Tenure: 7.5yrs
    • Compensation: $4.43m
  • Barbara Matas (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: $198.70k
  • Brenda Lauderback (68yo)

    Independent Director

    • Tenure: 15.5yrs
    • Compensation: $199.88k
  • Mike Harrison (58yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: $188.88k
  • Jean-Michel Valette (58yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: $298.88k

Company Information

Sleep Number Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sleep Number Corporation
  • Ticker: SL2
  • Exchange: DB
  • Founded: 1987
  • Industry: homefurnishing retail
  • Sector: retail
  • Market Cap: US$1.270b
  • Listing Market Cap: US$1.145b
  • Shares outstanding: 29.32m
  • Website: Click here

Number of Employees


Location

  • Sleep Number Corporation
  • 1001 Third Avenue South
  • Minneapolis
  • Minnesota
  • 55404
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SNBRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1998
SL2DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1998

Biography

Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding acces ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/16 21:56
End of Day Share Price2019/08/16 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.