Superior Story

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SGC -- USA Stock  

USD 21.10  0.71  3.26%

As many millenniums are excited about consumer cyclical space, it is only fair to go over Superior Group. We will evaluate why we are still confident in anticipation of a recovery. Is the firm operations in 2020 sustainable? Here we are going to cover Superior Group perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Superior (NASDAQ:SGC) price increase in August 2020?
This firm has 103.26 M in debt with debt to equity (D/E) ratio of 0.65, which is OK given its current industry classification. The company has a current ratio of 2.8, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Our advice tool can cross-verify current analyst consensus on Superior and to analyze the firm potential to grow in the current economic cycle.
We determine the current worth of Superior Group using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Superior Group based exclusively on its fundamental and basic technical indicators. By analyzing Superior's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Superior's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Superior. We calculate exposure to Superior's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Superior's related companies.

Superior Group Investment Alerts

Superior investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Superior Group performance across your portfolios.Please check all investment alerts for Superior

Superior Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Superior value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Superior competition to find correlations between indicators driving the intrinsic value of Superior.

How Superior utilizes its cash?

To perform a cash flow analysis of Superior, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Superior is receiving and how much cash it distributes out in a given period. The Superior cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Superior Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 278.9 Million

Exercise or conversion by Michael Benstock of 11384 shares of Superior subject to Rule 16b-3

Legal trades by Superior insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Superior insider trading alert for exercise of stock appreciation rights by Michael Benstock, CEO, on 1st of September 2020. This event was filed by Superior Group Of Compani with SEC on 2020-09-01. Statement of changes in beneficial ownership - SEC Form 4. Michael Benstock currently serves as ceo, director and member of executive committee of Superior Group [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

The current price build-up of Superior created some momentum for investors as it was traded today as low as 16.26 and as high as 18.48 per share. The company directors and management may have good odds in positioning the company resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.46. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Superior Group partners.
 2015 2016 2019 2020 (projected)
Cost of Revenue138.88 M165.61 M149.05 M119.24 M
Consolidated Income13.07 M14.64 M13.17 M14.21 M

Margins Breakdown

Superior profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Superior itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Superior profit margins.
Profit Margin
Operating Margin
Operating Margin5.88
EBITDA Margin8.94
Gross Margin0.3
Profit Margin3.7

Superior Average Equity is somewhat stable at the moment. Also, Superior Earnings Before Interest Taxes and Depreciation Amortization USD is somewhat stable at the moment.

Another 3 percent build-up for Superior

The potential upside is down to 10.61 as of today. As of the 29th of July, Superior has the Coefficient Of Variation of 508.18, risk adjusted performance of 0.3345, and Semi Deviation of 3.81. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Superior Group, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Superior Group, which can be compared to its competition. Please validate Superior Group variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Superior is priced more or less accurately, providing market reflects its prevalent price of 17.3 per share. Given that Superior Group has jensen alpha of 1.09, we advise you to double-check Superior Group's current market performance to make sure the company can sustain itself at a future point.

Whereas some other companies under the apparel manufacturing industry are still a bit expensive, Superior may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Superior as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Superior.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Superior Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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