Forensic Analysis · Durable Goods, Textiles & Apparel · as of Aug 11, 2026
Somnigroup International Inc. (SGI)
A forensic read on Somnigroup International Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
3.0
Distress distance
Clean
Earnings quality
4
Forensic signals
26.2
P / E (ttm)
12.4%
ROE
$13.4B
Market cap
1.05%
Dividend yield
51.6%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Somnigroup International Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 3.0, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+56.2%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +56.2% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by inventory up +41% against +48% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran behind operating cash by 7% of net operating assets, diverging from the balance-sheet accrual read.
6.0%
FY2025
Return on invested capital.Return on invested capital is 6.0% in the latest fiscal year and slipping from 16% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+5.1%/yr
FY2022–FY2025
Share-count dilution.Diluted share count changed +16% over the last 3 years to FY2025 (+5.1%/yr). The count is growing: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~5.1% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~14%.
0.5% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 0.5% of revenue and 6% of free cash flow in FY2025 — about $0.20 per diluted share. The cost of it is not in the cash flow — no cash left the business — it is in the count: holders gave up about 5.4% of the company a year, and that rate is not falling. That is the figure to weigh, not the share of free cash flow.
Key fundamentals
Latest Revenue$7.48B
Revenue Growth YoY+51.6%
Revenue CAGR (3yr)+15.0%
Net Margin5.1%
Free Cash Flow$633.2M
Return on Equity12.4%
Debt / Equity1.51x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Somnigroup International Inc.'s actual 10-K/10-Q/8-K filings?