Signet Jewelers Ltd. (SIG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Carvana Co.

Signet Jewelers Ltd.

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Academy Sports & Outdoors, Inc.

Lithia Motors, Inc.

Group 1 Automotive, Inc.

Dick's Sporting Goods, Inc.

Wayfair, Inc.

AutoNation, Inc.

Why is Signet Jewelers Ltd. ?

High Management Efficiency with a high ROE of 25.90%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.01 times

Healthy long term growth as Operating profit has grown by an annual rate 68.09%

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(9M) At USD 0.3 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at USD 616.3 MM
CASH AND EQV(HY) Lowest at USD 545.5 MM

With ROE of 20.64%, it has a expensive valuation with a 2.56 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 7.50%, its profits have fallen by -54.1%

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Signet Jewelers Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Signet Jewelers Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Signet Jewelers Ltd.

85.82%

-0.21

56.10%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.60%

EBIT Growth (5y)

37.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

2.92

Tax Ratio

61.69%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

40.40%

ROE (avg)

25.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.83

EV to EBIT

8.84

EV to EBITDA

6.98

EV to Capital Employed

2.77

EV to Sales

0.72

PEG Ratio

Dividend Yield

1.12%

ROCE (Latest)

31.31%

ROE (Latest)

22.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 120.62

PRE-TAX PROFIT(Q)

At USD 32.7 MM has Grown at 120.95%

NET PROFIT(Q)

At USD 25.95 MM has Grown at 110.42%

RAW MATERIAL COST(Y)

Fallen by -3.78% (YoY

-10What is not working for the Company

NET PROFIT(HY)

At USD -132.67 MM has Grown at -258.64%

CASH AND EQV(HY)

Lowest at USD 516.1 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.93 times

Here's what is working for Signet Jewelers Ltd.

Pre-Tax Profit

At USD 32.7 MM has Grown at 120.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 25.95 MM has Grown at 110.42%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Dividend per share

Highest at USD 120.62 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -3.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Signet Jewelers Ltd.

Cash and Eqv

Lowest at USD 516.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio