NasdaqGS:SNBR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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

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


Market Performance


7 Day Return

-23.6%

SNBR

10.0%

US Specialty Retail

7.2%

US Market


1 Year Return

-59.1%

SNBR

-23.7%

US Specialty Retail

-10.4%

US Market

Return vs Industry: SNBR underperformed the US Specialty Retail industry which returned -23.7% over the past year.

Return vs Market: SNBR underperformed the US Market which returned -10.4% over the past year.


Shareholder returns

SNBRIndustryMarket
7 Day-23.6%10.0%7.2%
30 Day-58.7%-23.4%-12.6%
90 Day-60.1%-30.7%-19.4%
1 Year-59.1%-59.1%-22.6%-23.7%-8.5%-10.4%
3 Year-22.1%-22.1%2.1%-2.9%15.8%8.3%
5 Year-44.3%-44.3%1.7%-6.5%35.8%21.0%

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

Valuation

Is Sleep Number 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: SNBR ($20.77) is trading below our estimate of fair value ($65.18)

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


Price To Earnings Ratio

PE vs Industry: SNBR is good value based on its PE Ratio (7.5x) compared to the Specialty Retail industry average (8x).

PE vs Market: SNBR is good value based on its PE Ratio (7.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: SNBR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: SNBR has negative assets, so we can't compare its PB Ratio to the US Specialty Retail industry average.


Next Steps

Future Growth

How is Sleep Number forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SNBR's forecast earnings growth (3.5% per year) is above the savings rate (1.7%).

Earnings vs Market: SNBR's earnings (3.5% per year) are forecast to grow slower than the US market (12.2% per year).

High Growth Earnings: SNBR's earnings are forecast to grow, but not significantly.

Revenue vs Market: SNBR's revenue (2.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: SNBR's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SNBR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sleep Number performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SNBR has high quality earnings.

Growing Profit Margin: SNBR's current net profit margins (4.8%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: SNBR's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: SNBR's earnings growth over the past year (17.9%) exceeds its 5-year average (4.6% per year).

Earnings vs Industry: SNBR earnings growth over the past year (17.9%) exceeded the Specialty Retail industry 6.9%.


Return on Equity

High ROE: SNBR's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Sleep Number's financial position?


Financial Position Analysis

Short Term Liabilities: SNBR has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SNBR has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SNBR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SNBR's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: SNBR's debt is well covered by operating cash flow (81.9%).

Interest Coverage: SNBR's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet

Inventory Level: SNBR has a high level of physical assets or inventory.

Debt Coverage by Assets: SNBR 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 vs Market

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

High Dividend: Unable to evaluate SNBR'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 SNBR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SNBR'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 SNBR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Shelly Ibach (59yo)

7.83s

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

Compensation vs Market: Shelly's total compensation ($USD4.43M) is above average for companies of similar size in the US market ($USD2.12M).

Compensation vs Earnings: Shelly's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shelly Ibach
CEO, President & Executive Director7.83yrsUS$4.43m0.56% $3.0m
David Callen
CFO & Senior VP6yrsUS$1.13m0.080% $427.4k
Kevin Brown
Senior VP & Chief Marketing Officer6.25yrsUS$995.71k0.082% $434.1k
Andrea Bloomquist
Chief Product Officer & Senior VP7.83yrsUS$1.01m0.23% $1.2m
Suresh Krishna
Senior VP and Chief Operations4yrsUS$1.48m0.18% $968.0k
Robert Poirier
Chief Accounting Officer13.17yrsno data0.0096% $51.3k
Joseph Saklad
Senior VP & Chief Information Officer7.33yrsno data0.22% $1.2m
David Schwantes
Vice President of Financeno datano datano data
Samuel Hellfeld
Senior VP2.25yrsno data0.035% $185.3k
Melissa Barra
Senior VP0.83yrno data0.16% $868.4k

6.3yrs

Average Tenure

50yo

Average Age

Experienced Management: SNBR's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shelly Ibach
CEO, President & Executive Director7.83yrsUS$4.43m0.56% $3.0m
Michael Peel
Independent Director17.17yrsUS$200.88k0.40% $2.2m
Stephen Gulis
Independent Director14.75yrsUS$193.61k0.080% $425.0k
Brenda Lauderback
Independent Director16.17yrsUS$199.88k0.11% $588.9k
Jean-Michel Valette
Independent Chairman9.92yrsUS$298.88k0.80% $4.3m
Michael Harrison
Independent Director9.25yrsUS$188.88k0.14% $721.4k
Robi Ludwig
Member of Sleep Number Quality - Life Advisory Board12.17yrsno datano data
John Ellis
Member of Sleep Number Quality - Life Advisory Board12.17yrsno datano data
Rebecca Cole
Member of Sleep Number Quality - Life Advisory Board12.17yrsno datano data
Barbara Matas
Independent Director4yrsUS$198.70k0.061% $326.7k

12.2yrs

Average Tenure

59yo

Average Age

Experienced Board: SNBR's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SNBR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Sleep Number Corporation
  • Ticker: SNBR
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Homefurnishing Retail
  • Sector: Retail
  • Market Cap: US$531.671m
  • Shares outstanding: 27.75m
  • Website: https://www.sleepnumber.com

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. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding product under the Sleep Number name. It also offers adjustable bases under the FlextFit name; temperature-balancing products, including DualTemp layer; SleepIQ Kids k2 beds for kids; and smart beds under the Sleep Number 360 brand name. The company sells its products directly to consumers through retail, online, and phone, as well as through wholesale. As of February 19, 2020, it operated approximately 610 stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 01:22
End of Day Share Price2020/03/31 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.