# Somnigroup International Inc. (SGI)

> Source: Nexqual · https://nexqual.com/SGI · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Somnigroup International Inc. (SGI), nexqual.com/SGI" · informational, not investment advice.

**Price:** USD 65.99 (+4.96% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 62.87 · day 62.15–66.06 · 52w 60.08–98.56 · market cap $15.2B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $7.62B, net income $533M (7.0% margin), free cash flow $769M (SEC filings).
- Valuation: P/E 28.5x (avg 33.2x at the last 3 fiscal year-ends), EV/EBITDA 15.6x, net debt $4.30B.
- Earnings quality: non-operating income -$238M vs operating income $951M over the last four quarters; P/E excluding non-operating income ≈21.4x (estimate: non-operating income taxed at the company's 25.2% effective rate).
- 2 of 80 tracked superinvestors hold SGI (13F, Q2 2026): 0 new, 1 added, 0 reduced, 1 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $446K; 1 not under a Rule 10b5-1 plan ($446K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Insider open-market purchases, last ~7 months: 1 Form 4 filing, $1.9M; 0 by opportunistic insiders, 0 by routine insiders.
- Analysts: Buy (mean 1.80 on a 1–5 scale) (10 analysts), mean target USD 92.33 (range 80–105).
- Total return with dividends: 1Y -19.7% vs S&P 500 +14.9%; 5Y +45.1% vs S&P 500 +80.3%.
- Next earnings: 2026-11-09, EPS estimate USD 1.06, revenue estimate $2.43B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $4.93B | $4.92B | $4.93B | $4.93B | $7.48B | $7.62B |
| Gross profit | $2.16B | $2.05B | $1.99B | $2.03B | $3.18B | — |
| Operating income | $912M | $681M | $607M | $634M | $755M | $951M |
| Net income | $625M | $456M | $368M | $384M | $384M | $533M |
| EPS (diluted) | $3.06 | $2.53 | $2.08 | $2.16 | $1.84 | — |
| Free cash flow | $600M | $72.3M | $385M | $569M | $633M | $769M |
| Gross margin | 43.8% | 41.6% | 40.3% | 41.1% | 42.6% | — |
| Operating margin | 18.5% | 13.8% | 12.3% | 12.9% | 10.1% | 12.5% |
| Net margin | 12.7% | 9.3% | 7.5% | 7.8% | 5.1% | 7.0% |
| Revenue growth | +34.1% | -0.2% | +0.1% | +0.1% | +51.6% | — |
| Cash + short-term investments | $301M | $69.4M | $74.9M | $1.71B | $135M | — |
| Total debt | $2.28B | $2.75B | $2.50B | $3.76B | $4.61B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 28.5x · P/E ex non-operating (est.) ≈21.4x · P/S 2.0x · EV/EBITDA 15.6x · EV/Sales 2.6x · P/FCF 19.8x · P/B 4.7x · FCF yield 5.06% · Earnings yield 3.51% · Dividend yield (paid, TTM) 0.89% · Net debt $4.30B · EV $19.5B
P/E at fiscal year-ends: Dec 2025 48.6x, Dec 2024 26.3x, Dec 2023 24.6x.

## Superinvestors (SEC 13F-HR, Q2 2026)
2 of 80 tracked investors hold SGI. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| David Abrams | Abrams Capital Management | 8.30% | $455M | Unchanged |
| Daniel Loeb | Third Point | 4.34% | $202M | Added +13.2% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-05-22 | Rusing Steven H | President & CEO Mattress Firm | 6,657 | $446K | 2% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Insider purchases (SEC Form 4, open-market, last ~7 months)
1 purchase, $1.9M. Private placements, offerings, dividend reinvestment and employee stock purchase plan buys are excluded.
| Trade date | Insider | Role | Shares | Value | Avg price | Insider type |
|---|---|---|---|---|---|---|
| 2026-08-27 | Thompson Scott L | CEO & PRESIDENT | 30,000 | $1.9M | 62.84 | Too little history (no open-market trades in 2023–2025) |

## Analysts
Consensus Buy (mean 1.80 on a 1–5 scale), 10 analysts; mean target USD 92.33 (low 80, high 105).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-14 | Stephens & Co. | Upgrade | Equal-Weight → Overweight | $66 → $80 |
| 2026-09-03 | Piper Sandler | Target raised | Overweight | $95 → $100 |
| 2026-09-03 | UBS | Target raised | Buy | $94 → $102 |
| 2026-08-07 | UBS | Target lowered | Buy | $105 → $94 |
| 2026-08-07 | Piper Sandler | Target lowered | Overweight | $102 → $95 |
| 2026-08-07 | Truist Securities | Target lowered | Buy | $115 → $100 |
| 2026-07-27 | Morgan Stanley | Initiated | Overweight | $95 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -19.7% | +45.1% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -19.8% | +7.7% |
| Volatility (annualized) | 41.5% | 36.3% |
| Max drawdown | -37.1% (Feb 2026→May 2026) | -55.3% (Oct 2021→Jun 2022) |

## Peers (Furnishings, Fixtures & Appliances)
MHK (Mohawk Industries, Inc.) USD 128.7 +9.03% · SN (SharkNinja, Inc.) USD 199.16 +0.80% · ALH (Alliance Laundry Holdings Inc.) USD 21.44 +0.52% · HNI (HNI Corporation) USD 48.21 +6.99% · TILE (Interface, Inc.) USD 36.51 +4.11% · WHR (Whirlpool Corporation) USD 28.8 +8.56%

## More
Full page: https://nexqual.com/SGI · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in SGI's own 10-K filed 2026-02-27 (https://www.sec.gov/Archives/edgar/data/1206264/000120626426000015/sgi-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Supplier | Sealy | "Raw materials for Sealy® and non-branded products consist mainly of polyurethane foam, textiles and steel innerspring components that we purchase from various suppliers." |

Other companies that name SGI in their own reports (relationship from SGI's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| partner | Purple Innovation, Inc. (PRPL) | 10-K 2026-03-31 | "Agreement with Mattress Firm (the "MRA Amendment"), a business unit of SGI, which provides that SGI, through its Mattress" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Mattress Firm | $922.2M | 50.6% | -2.8% | $59.4M | 6.4% |
| Tempur Sealy North America | $601.8M | 33.0% | -5.7% | $155.9M | 25.9% |
| Tempur Sealy International | $299.5M | 16.4% | +2.0% | $37.2M | 12.4% |
| Corporate costs (not allocated) | — | — | — | -$50.8M | — |
| Total revenue | $1.82B | 100% | — | $201.7M | 11.1% |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $1.45B | 79.7% | -4.5% |
| All other | $370.0M | 20.3% | +3.2% |
| Total revenue | $1.82B | 100% | — |

## Company outlook (8-K filed 2026-08-06)

- "For the full year 2026, the Company revised its expectations for adjusted EPS (1) to a range of $2.85 to $3.15, which represents an approximate 11% increase from 2025 adjusted EPS (1) at the mid-point of the range."
- "The Company is unable to reconcile forward‐looking adjusted EPS, a non‐GAAP financial measure, to EPS, its most directly comparable forward‐looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact EPS in 2026."
- "The Company expects the transaction to close by the end of the third quarter of 2026, subject to the satisfaction of customary closing conditions, including approval by Leggett & Platt's shareholders and receipt of applicable regulatory approvals."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.06 | $1.12 | -5.5% | $2.43B | 10 |
| Next quarter (ends 2026-12-31) | $0.88 | $0.84 | +4.6% | $2.79B | 10 |
| Current fiscal year (ends 2026-12-31) | $3.12 | $3.15 | -0.8% | $8.84B | 10 |
| Next fiscal year (ends 2027-12-31) | $3.86 | $3.90 | -1.0% | $11.53B | 10 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-09): ±12.9%; last 8 reports averaged ±6.9%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 57.3% | ±12.9% |
| 2026-12-18 | 56 | 50.5% | ±15.8% |
| 2027-01-15 | 84 | 45.9% | ±17.5% |
| 2027-02-19 | 119 | 47.8% | ±21.5% |
| 2027-03-19 | 147 | 45.8% | ±22.9% |
| 2027-06-17 | 237 | 46.0% | ±28.9% |