Home Sectors Consumer Cyclical Present Trend: Signet Jewelers Limited (NYSE: SIG)

Present Trend: Signet Jewelers Limited (NYSE: SIG)

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Signet Jewelers Limited trades as part of the consumer cyclical sector and is part of the retail apparel and specialty industry. The company CEO is Virginia C. Drosos. Signet Jewelers is a retailer of diamond jewelry. It operates jewelry stores in malls and off-mall locations in the US under national brands including Kay, Kay Jewelers Outlet, Jared and Jared Vault, as well as a type of mall-based regional brands.

Previous Intraday Trading Performance:

The SIG stock showed a previous change of 7.43% with an open at 19.50 and a close of 20.54. It reached an intraday high of 20.60 and a low of 19.41.

Business Wire:  Independent Private Sector Audit Supports Signet’s Sixth Disclosure That Its Jewelry Is “DRC Conflict Free”

Liquidity:

The stock has a market cap of $1.1b with 51.9m shares outstanding, of which the float is 50.8m shares. Trading volume reached 1,745,241 shares compared to its average volume of 1,695,392 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Signet Jewelers Limited shares returned -2.14% and in the past 30 trading days it returned -9.77%. Over three months, it changed -24.19%. In one year it has changed -50.87% and within that year its 52-week high was 71.07 and its 52-week low was 18.29. SIG stock is 12.33% above its 52 Week Low.

Our calculations show a 200 day moving average of 38.31 and a 50 day moving average of 22.97. Currently SIG stock is trading -46.39% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Signet Jewelers: A Safe 7% Yield With Short-Term Value Appeal

Earnings:

The last annual fiscal EPS for the company was reported at -12.09 that ended on 31st of January 2019. Based on 2 analyst estimates, the consensus EPS for the next quarter is -0.11. The TTM EPS is 5.86, which comes to a TTM PE of 3.51.

Below was the last reported quarterly diluted earnings per share:

Jan19 (Reported on 04/03/2019): -2.25
Oct18 (Reported on 12/06/2018): -0.74
Jul18 (Reported on 08/30/2018): -0.56
Apr18 (Reported on 06/06/2018): -8.48
Jan18 (Reported on 03/14/2018): 5.24

The dividend per share is currently 1.48, which is a dividend yield of 7.74%. Also, the payout ratio is 25.26%, therefore the dividend is safe according to our calculations. SIG stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 55.89, which means it is possibly undervalued and has a margin of safety of 63.25%.

Indicators to Watch:

Short-interest was 9,554,409, which was 18.41% of shares outstanding. The short-interest ratio or days-to-cover ratio was 4.70. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.04.

SeekingAlpha:  Sector Study: Consumer Cyclical Vs. Consumer Defensive Dividend Dogs, Which To Buy?

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is -39.38%, return on assets is -14.08%, profit margin is -3.86%, price-to-sales is 0.21 and price-to-book is 0.83.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 0  :Past Performance Score
 3  :Financial Strength Score
 3  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.