Superior Group of Companies (SGC) AI Stock Analysis

• Market Cap: $168.57M
• Dividend Yield: 5.47%
• Average Volume (3M): 71.92K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.05
• Revenue Growth: 4.12%
• EPS Growth: 36.65%
• Country: US
• Employees: 7,100
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.73
• Shares Outstanding: 16,477,804
• 10 Day Avg. Volume: 69,681
• 30 Day Avg. Volume: 71,920
• PEG Ratio: 0.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.31
• Price to Cash Flow (P/CF): 5.40
• P/FCF Ratio: 5.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.00
• Price Target Upside: 85.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Superior Group of Companies shows a strong recovery in profitability with effective cost management, but challenges in cash flow sustainability and mixed technical indicators suggest caution. The stock is reasonably valued with an attractive dividend yield. While the earnings call presents a mixed sentiment, strategic initiatives and growth in certain segments provide a cautiously optimistic outlook.

Positive Factors

Market Share Growth

Superior's Branded Products business is expected to leverage its competitive strengths to gain share in a highly fragmented $24 billion domestic market.

Revenue Growth

Healthcare Apparel segment revenue grew 11.4% year-over-year, with online sales initiatives gaining traction in wholesale and direct-to-consumer channels.

Negative Factors

Customer Sentiment

Customer sentiment remains cautious due to uncertainty caused by interest rates, inflation, and global geopolitics, impacting purchasing decisions.

Financial Performance

Q4/24 EBITDA declined -26.7% YOY to $7.3 million, driven by a decrease in gross margin and negative SG&A expense leverage from lower revenue.

Superior Group of Companies Business Overview & Revenue Model

Company Description

Superior Group of Companies, Inc. manufactures and sells apparel and accessories in the United States and internationally. It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products. The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for personnel of hospitals and healthcare facilities; hotels; food and other restaurants; retail stores; special purpose industrial facilities; commercial markets; transportation; public and private safety and security organizations; and miscellaneous service uses. It also provides various products directly related to uniforms and service apparel; industrial laundry bags for linen suppliers and industrial launderers; personal protective equipment; and promotional and related products for branded marketing programs, corporate awards, incentives and recognition programs, event promotions, employee and consumer rewards and incentives, and specialty packaging and displays. This segment sells its products under the Fashion Seal Healthcare, HPI, and WonderWink brand names. The Remote Staffing Solutions segment provides multilingual telemarketing and business process outsourced solutions through the recruitment and employment of qualified English-speaking agents. The Promotional Products segment produces and sells promotional products and other branded merchandise under the BAMKO, Public Identity, Tangerine, Gifts by Design, and Sutter's Mill brands to corporate clients and universities. The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

How the Company Makes Money

Superior Group of Companies (SGC) generates revenue through multiple streams. The primary income source is its branded apparel segment, where it designs, manufactures, and sells uniforms and promotional products to businesses in sectors such as healthcare, hospitality, and retail. Additionally, SGC earns from its call center services, offering customer engagement solutions and business process outsourcing to clients, which enhances its service portfolio. The company also benefits from strategic partnerships and contracts with key clients, bolstering its market position and revenue generation.

Superior Group of Companies Financial Statement Overview

Summary

Superior Group of Companies demonstrates a strong recovery in profitability metrics with improved revenue and profit margins, indicating effective cost management and operational efficiency. The balance sheet reflects healthier leverage and stable equity ratios, though asset growth is stagnant. Cash flow management displays resilience, but the declining trend in operational cash flow warrants attention. Overall, the company is on a positive trajectory but should focus on maintaining cash flow strength and asset growth.

Income Statement

Superior Group of Companies has shown a consistent increase in total revenue over the years, with a notable recovery in gross profit margin from a dip in 2022 to 100% in 2024, indicating effective cost management or pricing strategy. The net profit margin and EBIT margin have improved significantly in 2024 compared to previous years, reflecting enhanced operational efficiency. However, the absence of EBITDA data for 2024 limits a complete profitability assessment.

Balance Sheet

The company's debt-to-equity ratio improved in 2024, indicating better leverage management compared to previous years. Return on equity (ROE) has rebounded positively from a negative in 2022, highlighting improved profitability. The equity ratio remains stable, showing a healthy proportion of equity financing. However, total assets have slightly decreased since 2021, suggesting room for asset growth.

Cash Flow

Operating cash flow has decreased in 2024 compared to 2023 but remains positive, suggesting adequate cash generation from operations. The free cash flow has decreased but is still positive, indicating good cash management after capital expenditures. The free cash flow to net income ratio is robust, but the decline in cash flow metrics suggests potential concerns in sustaining cash generation levels.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
565.68M	543.30M	578.83M	536.99M	526.70M
	Gross Profit
565.68M	203.55M	193.36M	186.01M	188.76M
	EBIT
0.00	19.49M	14.92M	34.35M	51.30M
	EBITDA
33.84M	33.48M	-20.14M	43.64M	61.59M
	Net Income Common Stockholders
12.00M	8.77M	-31.97M	29.44M	41.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.77M	19.90M	17.72M	8.94M	5.17M
	Total Assets
415.13M	422.45M	456.94M	470.25M	393.92M
	Total Debt
96.52M	110.52M	159.25M	119.86M	89.26M
	Net Debt
77.75M	90.62M	141.53M	110.92M	84.08M
	Total Liabilities
216.28M	224.81M	264.34M	243.25M	202.29M
	Stockholders Equity
198.86M	197.64M	192.60M	226.99M	191.63M
Cash Flow		Free Cash Flow
28.99M	73.97M	-13.62M	-616.00K	29.50M
	Operating Cash Flow
33.43M	78.93M	-2.60M	17.08M	41.36M
	Investing Cash Flow
-8.44M	-5.51M	-17.43M	-34.13M	-6.57M
	Financing Cash Flow
-24.47M	-71.62M	28.85M	21.00M	-38.44M

Superior Group of Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGC, the sentiment is Negative. The current price of 10.22 is below the 20-day moving average (MA) of 10.48, below the 50-day MA of 12.28, and below the 200-day MA of 14.88, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGC.

Superior Group of Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VNCE	72 Outperform	$19.42M	4.26	8.53%	―	-6.50%	-76.07%
SGC	66 Neutral	$168.57M	14.07	6.05%	5.47%	4.12%	36.65%
Sector *	59 Neutral	$6.44B	11.30	3.27%	4.27%	2.37%	-21.19%
UFI	52 Neutral	$97.26M	―	-12.60%	―	1.57%	38.38%
JRSH	51 Neutral	$35.66M	―	-5.77%	6.90%	15.70%	-337.22%
LAKE	43 Neutral	$147.04M	―	-13.39%	0.77%	34.10%	-432.13%
CULP	41 Neutral	$47.85M	―	-31.18%	―	-9.80%	-59.08%

Superior Group of Companies Corporate Events

Superior Group Initiates 10b5-1 Share Repurchase Plan

On March 20, 2025, Superior Group of Companies, Inc. implemented a 10b5-1 trading plan to repurchase shares of its common stock, following a share repurchase program authorized by its Board of Directors on March 11, 2025. This plan, compliant with Rule 10b5-1(c) under the Securities Exchange Act of 1934, allows the company to buy back shares starting March 21, 2025, until the repurchase limit is reached or other specified events occur, with repurchases managed by an independent broker under certain constraints.