signet jewelers stock is on sale - gold pendant and earring set
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ComSignet jeweler Co. , Ltd (NYSE:SIG)
It is the world's largest diamond jewelry retailer, mainly operating more than 3,000 stores and more than 600 kiosks in the United States. S.
But also in the United StatesK.
Canada and Puerto Rico.
Location in the United StatesS.
Run under famous and well-known names such as Kay jeweler, Jared jeweler and Zales jeweler.
Stores outside the United StatesS.
Generally run under different brands. The U. K.
The location is usually H.
Canadian brands including people's jeweler and Mappins jeweler.
In addition to the primary products of diamond jewelry provided by the company, its location also sells gold and silver jewelry, watches and other types of jewelry.
Signet's shares have fallen about 40% in the past 12 months, down from a 52-week high of $111 per share.
It's lower than it's all.
It hit a record high of $152 per share in October 2015.
However, Signet has been steadily increasing earnings per share and dividend spending in recent years.
Currently pay $0.
The quarterly dividend per share is 31 shares, with a yield of about 1. 85% annually.
The shares also received less than nine times the long-term earnings.
By contrast, rival Tiffany & Co (NYSE:TIF)
Forward returns are more than 21 times.
The capital structure is also strong, with Signet's balance sheet debt totaling less than 25% of its market value.
EBIT is 15 times the interest expense in the first 12 months.
Signet's strong balance sheet and economies of scale enable it to purchase raw materials at relatively favorable prices and conditions.
During the most recent reporting period, Signet accounted for 20 of the top five suppliers.
The largest purchase of 4% includes 5. 5%.
From the different stages of the supply chain, suppliers are distributed around the world.
Diamonds account for about 45% of the cost of selling goods, and gold accounts for about 14% in the company's last 12 months.
In the most recent fiscal year, Signet opened 57 new stores, with a total of about 29,500 employees.
The shops operated by Signet are usually leased and have a large number of shopping centers.
Given the struggles of shopping malls in recent years, part of Signet's future strategy is to shift its store location portfolio more to non-shopping centresmall locations.
The company's revenue for the fourth quarter was about 40% and operating profit was about 50%.
Average annual sales in other quarters are around 20%.
Based on data from the United StatesS.
Bureau of Economic Analysis and census, Signet holds about 7% of the US $80 billion jewelry and watches market, which is mainly scattered in the United States. S.
Sales in the same store have dropped by 1 in the last year.
An increase of 9% over the previous year.
However, operating income per share and diluted earnings rose by 11. 9% and 20.
6%, although part of the increase was due to the recent acquisition of Zales.
The company's recent woes have been largely due to weak sales, negative headlines and concerns about its interior
Consumer financing program.
We believe that these issues provide an opportunity for investors to buy a quality company with well-known brands and strong fundamentals at very reasonable prices.
Sales may be a bit sluggish, but the pricing in the market seems to be much worse at the current price.
Revenue growth does not need to be much higher to prove that the valuation of stocks is much higher.
In addition, it appears that management has a responsibility to deal with the negative title of diamond exchange during the recently reported customer repair and sexual harassment claims.
For example, the company is investing in technology to create diamond fingerprints to provide more transparency and confidence to its customers.
More than half of Signet's sales in the USS.
And use in Canada-
Use a third-party bank card to finance a house or a third-party customer, 35%.
A downturn in the economy or a rise in consumer debt levels may adversely affect Signet's sales.
However, the level of accounts receivable and the cost of bad debts seem to be controlled.
The housing financing plan seems to be exaggerated.
Management seems to have good practices in providing credit to customers.
Not only in-
The house financing scheme is good for customers, but also increases the bottom line in the form of interest income.
With its strong brand name, investment-grade credit rating, growing dividends and earnings, the potential return on owning Signet shares at the current price level seems to exceed the current risk.
Disclosure: I/we don't have a position in any of the stocks mentioned, but may post a long position in SIG for the next 72 hours.
This article was written by myself and expressed my views.
I was not compensated.
I have no business relationship with any stock company mentioned in this article.