SIG Investment Analysis Report & Stock Research, Signet Jewelers Ltd

Signet Jewelers Ltd (SIG)

SIG Stock Report

2-Year Price History

View Larger SIG Chart
NYSE:SIG
$27.02
(2/9 3:43PM)
+0.2%
Open$26.98 Mkt Cap$2.3 Billion
High$27.06 52Wk High$29.07
Low$26.55 52Wk Low$6.95
Volume281,053 Avg Vol 10D389,900

Ockham's Rating/Recommendation Summary

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SIG Revenue

Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, SIG the high and low end of the Price to Sales per share ratios are 1.08x and 0.56x respectively.

Notice that SIG's current Price to Sales per share ratio is 0.72x, which is below its historical average only slightly. So, while not a huge positive for our analysis, we do feel it is worth noting that SIG does look a bit undervalued on a Price to Sales basis, all other factors being equal. However, if the Price to Sales ratio drops further, Ockham Research is likely to become more bullish on this stock.

SIG Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on SIG from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for SIG, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

SIG Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

Peer Comparison

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Signet Jewelers Ltd Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including SIG) 16.71 4.10 » 33.97 1.56 0.60 » 2.52 15.08% 22.19%
*10 year range does not include current year values
Copart, Inc. CPRT $2.8 Billion $33.10 15.52 6.77 » 32.29 3.79 1.81 » 7.53 13.14% 15.36%
Signet Jewelers Ltd SIG $2.3 Billion $26.97 -1.00 5.48 » 15.25 0.72 0.02 » 1.30 2.53% 12.23%
Inergy L.P. NRGY $2.3 Billion $34.31 9.04 3.33 » 30.34 1.45 0.47 » 1.41 26.62% 7.84%
Dick's Sporting Goods, Inc. DKS $2.0 Billion $22.78 39.56 4.70 » 52.00 0.60 0.19 » 1.05 22.94% 15.01%
Tractor Supply Company TSCO $1.8 Billion $50.14 11.55 2.05 » 20.93 0.57 0.09 » 1.15 15.35% 16.16%
Suburban Propane Partners L.P. SPH $1.6 Billion $44.66 7.90 3.63 » 34.31 1.37 0.43 » 1.44 -2.65% 56.58%
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4:47P, Jul. 06,2009 SIG $20.46 Signet Jewelers Ltd
Closing Bell

Signet Jewelers Ltd (SIG) Discussed on CNBC's Closing Bell

Signet Jewelers Ltd is in the news. Find out how this impacts SIG trading on Ockham Research.

>> so what are the best franchises as well as balance sheet stories that you can pass on to us? >> I think a really good example, I can list two of them. One actually that trades here in the united states. SIGNET JEWELERS. Now, it's an anglo-u.S. Company. Its origins are in the united kingdom. That's signet jurlz. But they trade very strongly here in the united states under

“… Its origins are in the united kingdom. That's signet jurlz. But they trade very strongly here in the united states under …”

3:55P, Mar. 25,2009 SIG $12.44 Signet Jewelers Ltd
Closing Bell

Signet Jewelers Ltd (SIG) Discussed on CNBC's Closing Bell

Signet Jewelers Ltd is in the news. Find out how this impacts SIG trading on Ockham Research.

College of obstetricians and gynecologists recommends the use of its tests for breast cancer. Melissa, back to you. >> taking a look at some of today's under the radar stocks, SIGNET JEWELERS, the world's largest specialty jeweler swinging to a $424 million fourth quarter loss because of a huge goodwill impairment charge. Ex-excluding that cost signet

“… on fourth quarter loss because of a huge goodwill impairment charge. Ex-excluding that cost signet …”

3:51P, Mar. 25,2009 SIG $12.45 Signet Jewelers Ltd
Closing Bell

Signet Jewelers Ltd (SIG) Discussed on CNBC's Closing Bell

Signet Jewelers Ltd is in the news. Find out how this impacts SIG trading on Ockham Research.

>> are you blaming me? >> I did make it sound that way. I blame you for everything >> it's why i'm here. Up next, under the radar, find out why shares of SIGNET JEWELERS are soaring despite swinging to a big quarterly lot.

“… >> are you blaming me? >> I did make it sound that way. I blame you for everything >> it's why i'm here. Up next, under the radar, find out why shares of SIGNET JEWELERS are soaring despite swinging to a big quarterly lot. …”

10:44A, Feb. 24,2009 SIG $7.18 Signet Jewelers Ltd
Squawk On The Street

Signet Jewelers Ltd (SIG) Discussed on CNBC's Squawk On The Street

Signet Jewelers Ltd is in the news. Find out how this impacts SIG trading on Ockham Research.

Have been significant. Particularly in stock that's going to affect people's plans in the short term. I'm hope flg to see improvement over the next year or two. >> did I sense a breath of sig of relief that we didn't privatize the securities? >> well, we never got that far

“… never got that far …”

View All Signet Jewelers Ltd Stock News

Key Fundamentals

SIG - Signet Jewelers Ltd Fundamentals
Price (2/9 3:43PM) $27.02
Volume (2/9 3:43PM) 281,053
Last Close Price $26.97
10 Day Average Volume 389,900
13 Week Price Range $23.01 - $29.07
52 Week Price Range $6.95 - $29.07
LTM Revenue $3.2 Billion
 
Shares Outstanding (01/2009) 85.5 Million
Market Capitalization $2.3 Billion
Shares Held By Institutions 59.6 Million
Institutional Holders 149
% Shares Held By Institutions 69.90%
Earnings Per Share (EPS) ($4.62)
P/E Ratio n/a
Book Value Per Share $19.73
 
Gross Margin 35.20%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.19
Fiscal Year Ends January

About Signet Jewelers Ltd

Signet Jewelers Ltd is considered to operate in the Services sector. They specifically operate in the Jewelry Stores business segment contained within the Specialty Retail industry.

The Company is engaged in the retailing of jewelry, watches and associated services. It is managed as two geographical operating segments: the US division and the UK division.