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SGISomnigroup International Inc.Sell6.0·$74.97+0.96%
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Somnigroup International Inc. (SGI) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Cyclical · Furnishings, Fixtures & Appliances

Sell if holding. At $74.97, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5; Below 200-MA, MA slope -1.4%/30d (confirmed downtrend).

Somnigroup International, after completing the $5.1 billion Mattress Firm acquisition in February 2025, operates over 2,800 retail stores globally across Mattress Firm (U.S., 2,100+ stores), Dreams (U.K., 200+ stores), and SOVA (Sweden). Direct channel sales were 63.5% of net... Read more

$74.97+12.9% A.UpsideScore 6.0/10#3 of 11 Furnishings, Fixtures & Appliances
QualityF-score7 / 9FCF yield4.08%
IncomeYield0.92%(5y avg 0.93%)Payout24.80%sustainable
Stop $69.72Target $84.61(analyst − 13%)A.R:R 0.9:1
Analyst target$97.25+29.7%8 analysts
$84.61our TP
$74.97price
$97.25mean
$115

Sell if holding. At $74.97, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5; Below 200-MA, MA slope -1.4%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 61. Score 6.0/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About Somnigroup International Inc.

About Somnigroup International Inc.

Somnigroup International completed the $5.1 billion acquisition of Mattress Firm on February 5, 2025, creating a combined global retail footprint of over 2,800 stores. Direct channel sales represented 63.5% of net sales in 2025, up sharply from 24.9% in 2024, driven by the Mattress Firm consolidation. Approximately 20% of net sales were generated outside the U.S. across approximately 100 countries, with licensing activities adding $39.5 million in royalty and franchise revenue in 2025.

Somnigroup earns revenue across three segments — Mattress Firm (U.S. specialty retail), Tempur Sealy North America, and Tempur Sealy International — plus a wholesale channel serving third-party retailers, hospitality, and healthcare customers. The flagship product brands include Tempur-Pedic, Sealy, Stearns & Foster, and the private-label Sleepy's. Raw material inputs — polyurethane foam, steel innerspring components, and textiles — are subject to commodity price volatility tied to petroleum and steel markets. Adjustable bed bases and foundations sourced for Mattress Firm are dependent on components supply chains originating in China, though the company states it expects alternate sources to become available over time. The domestic manufacturer market is described as concentrated, while the retail and international markets are fragmented.

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Bedding purchases are sensitive to consumer confidence, disposable income, and the availability of consumer financing — factors the 10-K identifies as key performance drivers. The U.S. bedding industry has experienced outsized pressures at mid-to-entry price points in recent years, prompting the company to launch an all-new Sealy Posturepedic collection in 2025 targeting that segment. If macroeconomic conditions weaken consumer willingness to spend on discretionary furniture and bedding, the combined entity's fixed-cost retail network of more than 2,100 U.S. stores may weigh on margins.

See also: Consumer Cyclical · Furnishings, Fixtures & Appliances

From Somnigroup International Inc.'s most recent 10-K filing, extracted June 11, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-17
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 6, 202651d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Strong growth profile
Risks
Leverage penalty (D/E 2.1): -1.5
Below 200-MA, MA slope -1.4%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)29.7
P/E (Fwd)19.0
Mkt Cap$15.6B
EV/EBITDA17.4
Profit Mgn6.8%
ROE17.7%
Rev Growth12.3%
Beta1.21
Dividend0.92%
Rating analysts14

Quality Signals

Piotroski F7/9MoatNarrow

Options Flow

P/C0.73neutral
IV63%elevated
Max Pain$105+40.1% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.4
Support Resistance
1.9
52w Position
5.3
GatesA.R:R 0.9 < 1.5@spotDeath cross (50MA < 200MA)Momentum 6.4>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 51d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
61 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $60.23Resistance $78.39

Price Targets

$70
$85
A.Upside+12.9%
A.R:R0.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! asymmetry at 0.9 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (51d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SGI stock a buy right now?

Sell if holding. At $74.97, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 2.1): -1.5; Below 200-MA, MA slope -1.4%/30d (confirmed downtrend). Chart setup: Death cross but MACD improving, RSI 61. Prior stop was $69.72. Score 6.0/10, moderate confidence.

What is the SGI stock price target?

Take-profit target: $84.61 (+12.9% upside). Prior stop was $69.72. Stop-loss: $69.72.

What are the risks of investing in SGI?

Leverage penalty (D/E 2.1): -1.5; Below 200-MA, MA slope -1.4%/30d (confirmed downtrend).

Is SGI overvalued or undervalued?

Somnigroup International Inc. trades at a P/E of 29.7 (forward 19.0). TrendMatrix value score: 6.5/10. Verdict: Sell.

What do analysts say about SGI?

14 analysts cover SGI with a consensus score of 4.1/5. Average price target: $97.

What does Somnigroup International Inc. do?Somnigroup International, after completing the $5.1 billion Mattress Firm acquisition in February 2025, operates over...

Somnigroup International, after completing the $5.1 billion Mattress Firm acquisition in February 2025, operates over 2,800 retail stores globally across Mattress Firm (U.S., 2,100+ stores), Dreams (U.K., 200+ stores), and SOVA (Sweden). Direct channel sales were 63.5% of net sales in 2025; brands include Tempur-Pedic, Sealy, and Stearns & Foster.

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