Somnigroup International Inc cash flow to debt ratio of 9.68% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Somnigroup International Inc's free cash flow has increased 11.24% from $569.20M last year to $633.20M, signaling increasing performance

Somnigroup International Inc's debt to equity ratio is 0.66, which means that the company's assets are unhealthy financed, signaling financial risk.

Somnigroup International Inc's debt has decreased relative to shareholder equity from 7.99 last year to 0.66 today, signaling strengthened financials

Somnigroup International Inc has a net debt to EBITDA ratio of 7.81x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Somnigroup International Inc's interest coverage ratio of 3.86 indicates that earnings with good margin can cover interest payments on company debt

Somnigroup International Inc's profit margin has decreased (10.15%) in the last year from 7.79% to 7.00%, signaling decreasing performance

Somnigroup International Inc's short-term liabilities of $1.57B exceed its short-term assets of $1.29B, signaling financial risk

Somnigroup International Inc's return on assets of 4.59% is lower than the 5.00% threshold, indicating inefficient asset utilization

Somnigroup International Inc's return on equity of 17.11%, is higher than 15.00%, indicating good performance

Somnigroup International Inc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Somnigroup International Inc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Somnigroup International Inc has positive free cash flow, indicating the company generates cash after capital expenditures

Somnigroup International Inc has a free cash flow yield of 4.64%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Somnigroup International Inc's yearly earnings has decreased 0.05% since last year from $384.30M to $384.10M, signaling decreasing performance

Somnigroup International Inc's yearly revenue has increased 51.63% since last year from $4.93B to $7.48B, signaling increasing performance

ROIC 7.01% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Somnigroup International Inc's 3-year revenue CAGR of 14.96% is positive, indicating growing revenue over the past 3 years

Somnigroup International Inc had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Somnigroup International Inc had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Somnigroup International Inc is overvalued relative to its fair value price of 1.57 based on Discounted Cash Flow model

Somnigroup International Inc has an earnings yield of 3.91%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Somnigroup International Inc is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

Somnigroup International Inc has an EV/EBITDA ratio of 20.92x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Somnigroup International Inc is undervalued relative to its fair value price of 95.23 based on Earnings Fair Value model

Somnigroup International Inc has a PEG-ratio over 1 which is considered overvalued

Somnigroup International Inc has a price-to-book ratio of 4.21x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Somnigroup International Inc has a price-to-sales ratio of 1.79x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue