NYSE:SIG

Stock Analysis Report

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Executive Summary

Signet Jewelers Limited engages in the retail sale of diamond jewelry, watches, and other products.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Signet Jewelers's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.3%

SIG

0.8%

US Specialty Retail

1.3%

US Market


1 Year Return

-31.7%

SIG

5.5%

US Specialty Retail

14.9%

US Market

Return vs Industry: SIG underperformed the US Specialty Retail industry which returned 4.7% over the past year.

Return vs Market: SIG underperformed the US Market which returned 12.5% over the past year.


Shareholder returns

SIGIndustryMarket
7 Day-4.3%0.8%1.3%
30 Day4.1%5.8%4.7%
90 Day19.4%19.9%17.1%
1 Year-29.2%-31.7%6.7%5.5%17.3%14.9%
3 Year-79.9%-82.2%43.4%37.0%38.9%29.9%
5 Year-89.5%-90.9%30.2%20.1%71.3%52.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Signet Jewelers undervalued compared to its fair value and its price relative to the market?

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIG ($10.74) is trading below our estimate of fair value ($15.98)

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


Price To Earnings Ratio

PE vs Industry: SIG is unprofitable, so we can't compare its PE Ratio to the US Specialty Retail industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SIG is good value based on its PB Ratio (0.6x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is Signet Jewelers forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

101.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SIG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SIG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SIG's revenue (2.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SIG's revenue (2.7% 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 SIG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Signet Jewelers performed over the past 5 years?

-49.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIG is currently unprofitable.

Growing Profit Margin: SIG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SIG is unprofitable, and losses have increased over the past 5 years at a rate of 49.5% per year.

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

Earnings vs Industry: SIG is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (-16.1%).


Return on Equity

High ROE: SIG has a negative Return on Equity (-5.1%), as it is currently unprofitable.


Next Steps

Financial Health

How is Signet Jewelers's financial position?


Financial Position Analysis

Short Term Liabilities: SIG's short term assets ($4.0B) exceed its short term liabilities ($1.7B).

Long Term Liabilities: SIG's short term assets ($4.0B) exceed its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: SIG's debt to equity ratio (84.8%) is considered high.

Reducing Debt: SIG's debt to equity ratio has increased from 48.5% to 84.8% over the past 5 years.

Debt Coverage: SIG's debt is well covered by operating cash flow (32.6%).

Interest Coverage: SIG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Signet Jewelers's current dividend yield, its reliability and sustainability?

1.37%

Forecast Dividend Yield


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: SIG is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIG'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?

1.8yrs

Average management tenure


CEO

Gina Drosos (57 yo)

3yrs

Tenure

US$9,222,270

Compensation

Ms. Virginia C. Drosos, also known as Gina, has been the Chief Executive Officer of Signet Jewelers Limited (Formerly, Signet Group PLC) since August 1, 2017. Ms. Drosos served as the President of Assurex ...


CEO Compensation Analysis

Compensation vs Market: Gina's total compensation ($USD9.22M) is above average for companies of similar size in the US market ($USD2.06M).

Compensation vs Earnings: Gina's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Virginia Drosos
CEO & Director3yrsUS$9.22m0.43%
$ 2.5m
Joan Hilson
Chief Financial Officer1.33yrsUS$2.52mno data
Judith Dennison
Chief Legal & Strategy Officer and Corporate Secretary5.67yrsUS$2.42m0.047%
$ 269.2k
Mary Finn
Chief People Officer2.25yrsUS$1.70m0.023%
$ 135.6k
Jamie Singleton
President of Kay1.42yrsUS$1.51m0.033%
$ 192.6k
Vincent Ciccolini
Chief Accounting Officer0.42yrno data0.017%
$ 100.5k
Howard Melnick
Chief Information Officer2.75yrsno data0.017%
$ 96.7k
Vincent Sinisi
Senior VP of Investor Relations0.25yrno datano data
Colleen Rooney
Chief Communications Officer0.92yrno datano data
William Brace
Chief Marketing Officer & Executive VP of Jaredno datano datano data
Oded Edelman
President of JamesAllen.com & Chief Digital Innovation Advisor2.92yrsUS$3.19m0.32%
$ 1.9m
Suzanne Shane
Senior Vice President of In-House Credit Operations & Customer Careno datano datano data

1.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SIG's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Virginia Drosos
CEO & Director3yrsUS$9.22m0.43%
$ 2.5m
Jonathan Seiffer
Independent Director1.17yrsUS$199.74k0.024%
$ 138.3k
Sharon McCollam
Independent Director2.42yrsUS$268.77k0.023%
$ 133.4k
Howard Stitzer
Independent Non-Executive Chairman8.17yrsUS$490.23k0.10%
$ 581.5k
R. Graf
Independent Director3.08yrsUS$238.77k0.025%
$ 146.5k
Nancy Reardon
Independent Director2.42yrsUS$263.77k0.023%
$ 132.8k
Eugenia Ulasewicz
Independent Non-Executive Director6.92yrsUS$258.77k0.036%
$ 207.6k
Helen McCluskey
Independent Director7yrsUS$258.77k0.038%
$ 217.1k
Zackery Hicks
Independent Director1.83yrsUS$238.77k0.020%
$ 112.8k
Brian Tilzer
Independent Director3.5yrsUS$238.77k0.027%
$ 155.9k

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SIG's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Signet Jewelers Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Signet Jewelers Limited
  • Ticker: SIG
  • Exchange: NYSE
  • Founded: 1950
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$577.121m
  • Shares outstanding: 52.32m
  • Website: https://www.signetjewelers.com

Number of Employees


Location

  • Signet Jewelers Limited
  • Clarendon House
  • 2 Church Street
  • Hamilton
  • HM11
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0P6ALSE (London Stock Exchange)YesCommon SharesGBEURJul 1988
SZ2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1988
SIGNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1988

Biography

Signet Jewelers Limited engages in the retail sale of diamond jewelry, watches, and other products. As of February 01, 2020, it operated 3,208 stores and kiosks. The company operates through three segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 23:32
End of Day Share Price2020/08/03 00:00
Earnings2020/05/02
Annual Earnings2020/02/01


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.