Superior Group of Companies, Inc. (SGC) Market Cap
Superior Group of Companies, Inc. has a market capitalization of $182.2M.
Financials based on reported quarter end 2025-12-31
Price: $11.60
▼ -0.12 (-0.99%)
Market Cap: 182.23M
NASDAQ · time unavailable
CEO: Michael L. Benstock
Sector: Consumer Cyclical
Industry: Apparel - Manufacturers
IPO Date: 1992-03-17
Superior Group of Companies, Inc. (SGC) - Company Information
Market Cap: 182.23M · Sector: Consumer Cyclical
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.
Analyst Sentiment
Based on 3 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 2 sources)
Consensus Price Target
Low
$18
Median
$21
High
$24
Average
$21
Potential Upside: 81.0%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"SGC reported revenue of $146.58M and a net income of $3.46M for the latest fiscal year. The company has maintained a solid operating cash flow of $18.44M and a free cash flow of $17.90M despite recent capital expenditures. SGC has total assets of $421.84M against total liabilities of $229.03M, reflecting a healthy equity position of $192.82M. However, with a net debt of $77.90M, the leverage ratio suggests some caution. Investors have received regular dividends of $0.14 quarterly, contributing to total dividends paid of $2.19M for the last year. While there has been a negative price change of -7.60% over the past year, YTD the company is up 7.38%. The consensus price target indicates potential upside, though recent performance is a concern. Overall, SGC exhibits moderate profitability and steady cash flows, but investor sentiment appears cautious given recent price action."
Revenue Growth
Revenue of $146.58M shows stable performance but moderate growth potential.
Profitability
Net income margin is low; profitability is present but limited.
Cash Flow Quality
Positive free cash flow indicates good cash management.
Leverage & Balance Sheet
Liabilities are manageable, but net debt suggests moderate leverage.
Shareholder Returns
Consistent dividends, yet recent price decline affects overall returns.
Analyst Sentiment & Valuation
Mixed sentiment reflected in the price target; potential exists but risks remain.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management highlighted a strong Q4 profit outcome—EPS of $0.23 nearly doubled on $147M revenue (+1% YoY) and EBITDA margin expanded +90 bps to 5.9%—while emphasizing disciplined cost actions (SG&A down ~$1.4M; Branded Products gross margin +50 bps despite tariffs). However, the Q&A exposed the operating constraint behind the numbers: customers’ ordering and deal-closing velocity remains “constrained,” worsened recently by geopolitical/economic uncertainty, and Contact Centers still struggles to offset earlier customer losses because prospective customer decisions are slow. Despite that, management cited early 2026 “green shoots” and expects Contact Centers growth to begin in the latter part of Q2 with stronger back-half benefit. Branded Products margin improvement was attributed to both pricing/cost (plus global production shifts when tariffs change), not just cost cuts. Net: confident on 2026 EPS ($0.54-$0.66) but cautious on near-term commercial momentum, with analyst pressure focused on where margin expansion and growth really come from.
Growth Catalysts
- Branded Products: program wins and strong orders; Q4 seasonality from employee holiday gifts
- Branded Products: large new wins in early 2026 (not quantified) supporting back-half 2026 growth
- Healthcare Apparel: growth momentum in Wink and Carhartt brands, particularly in direct-to-consumer
- Contact Centers: early 2026 pipeline conversions; expected new customer growth starting latter part of Q2 and stronger in back half of 2026
- Contact Centers: stability improving versus earlier 2025 customer downsizing, with no current bankruptcy-like risk identified
Business Development
- Healthcare Apparel: exclusive license with Carhartt
- Branded Products: growth across existing Fortune 100 enterprise customers plus active RFP participation for new logos; RFP pipeline meaningfully higher exiting Q4 vs same period last year
- Contact Centers: positioning as AI implementation partner for multiple AI companies (non-competitors), integrating their AI tech across 20-30-40 customers per deployment
Financial Highlights
- Revenue: $147M (+1% YoY, +6% sequential) demonstrating back-end weighted cadence
- EPS: diluted EPS $0.23 (nearly doubled from $0.13 YoY) despite flat-ish growth pressure
- EBITDA: $8.6M vs $7.3M prior year; EBITDA margin +90 bps to 5.9%
- Gross margin: 36.9% nearly flat vs 37.1% YoY
- Branded Products gross margin: 34.4%, +50 bps YoY despite higher tariffs
- Healthcare Apparel gross margin: 33.6%, -10 bps YoY (nearly flat)
- Contact Centers gross margin: 52.6%, down ~200 bps (about -2.0 percentage points) due to higher agent costs and revenue mix shift from July closure of lower-cost Jamaica center (partially offset by SG&A reductions)
- SG&A: reduced by ~$1.4M YoY; SG&A as % of sales improved to 33.2% from 34.4% a year earlier
- Interest expense: $1.3M vs $1.5M prior year quarter (lower weighted average interest rate)
- Liquidity/cash: $24M cash and cash equivalents at year-end (+$5M vs start of year); total liquidity >$100M
- 2026 guidance (initial): revenue $572M-$585M (implies ~3% growth at high end); diluted EPS $0.54-$0.66 vs $0.46 in 2025
Capital Funding
- Q4 shareholder returns: $2M dividends + $2M share repurchases
- Remaining authorization: ~$10M available under share repurchase program
- Operating cash flow: $20M positive during 2025 (no specific debt level disclosed; referenced to being within covenants)
Strategy & Ops
- Branded Products: expanding sales force; leveraging technology to make new/existing reps more efficient
- Healthcare Apparel: continued marketing investment while holding expenses (SG&A slightly down YoY in Q4 despite marketing)
- Contact Centers: SG&A reduced nearly $1M or 10% YoY via streamlining and strategic AI use
- Contact Centers: July closure of lower-cost Jamaica center drove revenue mix shift impacting gross margin
- AI in Contact Centers: monitoring hundreds of thousands of calls/week; real-time agent scoring/coaching; accent smoothing and noise cancellation (implementation capability described)
Market Outlook
- 2026 revenue range: $572M-$585M; back-end weighted cadence expected for both top and bottom lines
- 2026 EPS range: $0.54-$0.66 (significant improvement vs $0.46 in 2025)
- Growth timing: Contact Centers growth expected to start latter part of Q2 and benefit back half of 2026
- Guidance assumption: no significant change in macro/geopolitical conditions
Risks & Headwinds
- Customer decision velocity constrained: ordering/deal-closing velocity still constrained due to geopolitical climate and economic uncertainty; customers waiting for clear market signals
- Contact Centers: had higher turnover including customer bankruptcies in 2025; while management does not see that type of risk now, backfilling losses has been slower due to slow prospective customer decision-making
- Tariff environment: challenging tariffs impacted customer order patterns throughout the year (Branded Products still delivered +50 bps gross margin despite tariffs)
- Healthcare Apparel: Q4 softness from couple of digital retail customers; institutional hospital spending constrained due to uncertainty and government actions
- Working capital timing: accounts receivable increase attributed to December sales timing; expected normal cash collection pattern in Q1-Q2
Sentiment: MIXED
Note: This summary was synthesized by AI from the SGC Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.