NYSE:SIG

Stock Analysis Report

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Market Cap

US$3.5b

Last Updated

2021/07/24 01:00 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SIG's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.03%

SIG

4.0%

US Specialty Retail

2.0%

US Market


1 Year Return

469.7%

SIG

67.6%

US Specialty Retail

39.1%

US Market

Return vs Industry: SIG exceeded the US Specialty Retail industry which returned 64.7% over the past year.

Return vs Market: SIG exceeded the US Market which returned 36.9% over the past year.


Shareholder returns

SIGIndustryMarket
7 Day-0.03%4.0%2.0%
30 Day-14.6%2.7%2.3%
90 Day5.7%1.3%3.5%
1 Year469.7%469.7%68.8%67.6%41.3%39.1%
3 Year22.2%10.4%95.9%89.0%64.0%53.8%
5 Year-12.2%-23.5%111.5%97.2%123.8%99.0%

Long-Term 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?

41.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SIG ($67.23) is trading below our estimate of fair value ($115.72)

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


Price To Earnings Ratio

PE vs Industry: SIG is good value based on its PE Ratio (12.2x) compared to the US Specialty Retail industry average (14x).

PE vs Market: SIG is good value based on its PE Ratio (12.2x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: SIG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SIG is good value based on its PB Ratio (2.7x) compared to the US Specialty Retail industry average (3.3x).


Future Growth

How is Signet Jewelers forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIG's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: SIG's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: SIG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIG's revenue (1.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: SIG's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIG's Return on Equity is forecast to be high in 3 years time (22.8%)


Past Performance

How has Signet Jewelers performed over the past 5 years?

-46.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIG has high quality earnings.

Growing Profit Margin: SIG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SIG's earnings have declined by 46.5% per year over the past 5 years.

Accelerating Growth: SIG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SIG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (123%).


Return on Equity

High ROE: SIG's Return on Equity (16.2%) is considered low.


Financial Health

How is Signet Jewelers's financial position?


Financial Position Analysis

Short Term Liabilities: SIG's short term assets ($3.6B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: SIG's short term assets ($3.6B) exceed its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: SIG's debt to equity ratio (7.4%) is considered satisfactory.

Reducing Debt: SIG's debt to equity ratio has reduced from 37.1% to 7.4% over the past 5 years.

Debt Coverage: SIG's debt is well covered by operating cash flow (1049.7%).

Interest Coverage: SIG's interest payments on its debt are well covered by EBIT (20.4x coverage).


Balance Sheet


Dividend

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

1.07%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 24 2021Ex Dividend DateJul 29 2021Dividend Pay DateAug 27 202129 days from Ex DividendBuy in the next 5 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SIG's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SIG's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.55%).


Stability and Growth of Payments

Stable Dividend: SIG's dividend payments have been volatile in the past 10 years.

Growing Dividend: SIG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.7%), SIG's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIG's dividends in 3 years are forecast to be thoroughly covered by earnings (13.7% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Gina Drosos (58 yo)

3.92yrs

Tenure

US$12,184,594

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 ($USD12.18M) is above average for companies of similar size in the US market ($USD5.32M).

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


Leadership Team

Experienced Management: SIG's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: SIG's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SIG insiders have sold more shares than they have bought 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$3.541b
  • Shares outstanding: 52.67m
  • Website: https://www.signetjewelers.com

Number of Employees


Location

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

Listings


Biography

Signet Jewelers Limited engages in the retail sale of diamond jewelry, watches, and other products. It operates through three segments: North America, International, and Other. The North America segment op...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/24 01:00
End of Day Share Price2021/07/23 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.