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Somnigroup International SGI

Somnigroup International scores good on business quality (6.5 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$62.19Oct 9, 2026
Business qualityGood
Next earningsOct 29, 2026, before the open
Insiders, 90 daysBuying

Why it matters

  1. What Somnigroup International does

    Somnigroup International makes money by designing and selling home furnishings and sleep products to retail customers. The company is leaning heavily into product innovation and retail synergies to capture more share of the home furnishings market.

  2. What it does best

    Somnigroup drives top-tier top-line expansion, landing in the top decile of its sector with revenue growth of 51.6%. That scale dwarfs peers like MHK, which posted a revenue decline of 0.5%.

  3. The main risk

    With debt-to-equity at 1.5 and interest coverage sitting at a thin 4.2x, earnings are vulnerable to any macro shocks or rising debt servicing costs.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Operating margin stands at 14.0% with a net margin of 7.0%, producing an ROE of 17.1%. Scale is starting to improve operational returns as revenue expands.

MoatFair

Scale and retail synergies anchor its competitive position, reflected in a gross margin of 46.1% that sits comfortably above peers like MHK at 25.6%.

GrowthFast

Revenue surged to $7.6 billion from $4.9 billion previously, showing rapid acceleration that vastly outpaces its historical flat trend.

Financial healthFair

Total debt sits at $4.7 billion against $135 million in cash, creating a heavy leverage load. Free cash flow reached $769 million, keeping the balance sheet under pressure as debt climbs.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

1 insider bought $1.9M on the open market.

Our sealed record on SGI

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is SGI a good business?

Somnigroup International scores good on the Cluenex quality check (6.5 of 10), measured against its own industry. Profitability is fair, moat fair, growth fast and financial health fair.

Are insiders buying SGI?

In the last 90 days of SEC Form 4 filings: 1 insider bought $1.9M on the open market.

When does SGI report earnings?

Oct 29, 2026, before the open.

For members

See SGI today

  • Today's verdict on SGI, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Somnigroup International (SGI)”, https://cluenex.com/stocks/sgi/, data as of Oct 10, 2026.