SIGSignet Jewelers Limited
Is the business good?
The checks split: earnings fully cash-backed (1.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 15% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SIG?
Signet Jewelers Limited earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 6.8%
Operating margin · Luxury Goods median 6.8% · 12 months to Q2 2027
- Cash conversion
- 1.94×
Cash conversion · 4.68× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | −1.1% |
| FY2022 | 12% |
| FY2023 | 7.7% |
| FY2024 | 8.7% |
| FY2025 | 1.7% |
| FY2026 | 5.8% |
Details›
- Gross margin12 months to Q2 2027
- 39%
- Operating margin12 months to Q2 2027
- 6.8%
- Net margin12 months to Q2 2027
- 5.2%
- Free cash flow margin
- 7.9%
- Revenue, trailing twelve months
- $6.82B
- Free cash flow, trailing twelve months
- $537M
- Net income, trailing twelve months
- $354M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Luxury Goods
Ranks #2 of 6 by RyuScore