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1. Company Snapshot

1.a. Company Description

Superior Group of Companies, Inc.manufactures and sells apparel and accessories in the United States and internationally.It operates through three segments: Uniforms and Related Products, Remote Staffing Solutions, and Promotional Products.


The Uniforms and Related Products segment manufactures and sells a range of uniforms, corporate identity apparel, career apparel, and accessories for personnel of hospitals and healthcare facilities; hotels; food and other restaurants; retail stores; special purpose industrial facilities; commercial markets; transportation; public and private safety and security organizations; and miscellaneous service uses.It also provides various products directly related to uniforms and service apparel; industrial laundry bags for linen suppliers and industrial launderers; personal protective equipment; and promotional and related products for branded marketing programs, corporate awards, incentives and recognition programs, event promotions, employee and consumer rewards and incentives, and specialty packaging and displays.This segment sells its products under the Fashion Seal Healthcare, HPI, and WonderWink brand names.


The Remote Staffing Solutions segment provides multilingual telemarketing and business process outsourced solutions through the recruitment and employment of qualified English-speaking agents.The Promotional Products segment produces and sells promotional products and other branded merchandise under the BAMKO, Public Identity, Tangerine, Gifts by Design, and Sutter's Mill brands to corporate clients and universities.The company was formerly known as Superior Uniform Group, Inc.


and changed its name to Superior Group of Companies, Inc.in May 2018.Superior Group of Companies, Inc.


was founded in 1920 and is headquartered in Seminole, Florida.

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1.b. Last Insights on SGC

Superior Group of Companies' recent performance was driven by a strong Q3 earnings beat, with earnings per share of $0.33 surpassing the consensus estimate of $0.20. The company's revenue also exceeded expectations, indicating a solid operational performance. Additionally, Superior Group recently broke above the 200-day moving average, suggesting a long-term bullish trend. This technical indicator, combined with the company's recent earnings success, positions Superior Group for potential growth.

1.c. Company Highlights

2. Company Posts Mixed Q3 Earnings, Maintains Discipline

The company reported solid third-quarter earnings, with consolidated revenue at $138 million, down 7% year-over-year, but up 7% sequentially. Branded Products revenue was $85 million, down 8% due to factors such as sales pull forward and lower employee turnover among customers. The company's earnings per share (EPS) came in at $0.18, slightly below estimates of $0.2033. Despite the revenue decline, the company achieved EBITDA of $7.5 million and maintained expense discipline, with SG&A expenses decreasing by $3.9 million, or 7%. The balance sheet remains strong, with $17 million in cash and cash equivalents and over $100 million in liquidity.

Publication Date: Nov -17

📋 Highlights
  • Consolidated Revenue Decline with Sequential Growth:: Revenue fell 7% YoY to $138 million but rose 7% sequentially, driven by $85M in Branded Products despite an 8% segment decline.
  • Strong SG&A Reduction and EBITDA:: SG&A expenses dropped $3.9M (7%), contributing to $7.5M in EBITDA, reflecting disciplined cost management.
  • Full-Year Revenue Outlook Raised:: Adjusted guidance to $560–570M, with a higher midpoint and potential for 1.3% YoY growth at the top end.
  • Cost Savings Deliver $13M Annualized Impact:: A $4M G&A reduction (half from the program) is fully executed, with $13M in annualized savings anticipated.
  • Q4 Growth Focused on Branded Products:: $7M sequential revenue growth expected in Q4, driven by Branded Products with December as the largest monthly driver.

Segment Performance

Healthcare Apparel revenue declined 5% to $32 million, while Contact Center revenue was $23 million, down 9%. The company lost a client in the Contact Center business, impacting revenue by about $2 million annually, but sees potential for growth in 2026. As Michael Benstock stated, "we see this as an opportunity to build pipeline and backlog," particularly in the Branded Products segment, where the company is seeing strong bookings and pipeline.

Outlook and Guidance

The company adjusted its full-year revenue outlook to $560-570 million, with a higher midpoint and slight growth year-over-year at the high end of the range. For Q4, the company expects sequential revenue growth of $7 million, primarily driven by the Branded Products segment. Analysts estimate next year's revenue growth at 3.4%, indicating a potential slow and steady recovery.

Valuation and Metrics

With a P/E Ratio of 23.29 and an EV/EBITDA of 13.83, the company's valuation appears to be pricing in a moderate growth outlook. The company's Return on Equity (ROE) is 2.89%, and its Net Debt / EBITDA is 5.41, indicating a relatively high debt burden. The Dividend Yield is 6.3%, which may be attractive to income investors. Overall, the company's valuation metrics suggest that investors are expecting a slow and steady recovery, with a focus on maintaining expense discipline and driving growth through new account additions and potential acquisitions.

Acquisition Strategy

The company is actively pursuing acquisition opportunities, particularly in the Branded Products segment, and expects a deal to happen within the next year. Michael Koempel described the current landscape as a "rich playing field" with many potential targets, and the company is being aggressive in its pursuit.

3. NewsRoom

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Superior Group Of Companies: Performance May Worsen, But That Doesn't Change Things

Nov -28

Source: seekingalpha.com

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Blue Gold Limited Hits 1,000,000 (One Million) pre-Registration Standard Gold Coin in Five Days since Launching

Nov -10

Source: globenewswire.com

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Solstice Gold Commences Expanded Alpha IP Program at Red Cedar Discovery, Strathy Gold Project

Nov -10

Source: businesswire.com

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Blue Gold Limited Opens Registration for Standard Gold Coin (SGC), Digital Token Backed by Physical Gold

Nov -06

Source: globenewswire.com

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SGC vs. RVLV: Which Stock Is the Better Value Option?

Nov -05

Source: zacks.com

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Superior Group of Companies, Inc. (SGC) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Superior Group of Companies Reports Third Quarter 2025 Results

Nov -03

Source: globenewswire.com

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Solstice Gold Announces Closing of Upsized Private Placement

Oct -31

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.65%)

6. Segments

Branded Products

Expected Growth: 3.5%

Superior Group of Companies' branded products segment growth of 3.5% is driven by increasing demand for high-quality uniforms and image apparel, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovative products, strong customer relationships, and efficient supply chain management contribute to its growth momentum.

Healthcare Apparel

Expected Growth: 3.8%

Superior Group of Companies' Healthcare Apparel segment growth of 3.8% is driven by increasing demand for medical uniforms and protective gear, fueled by an aging population, healthcare workforce expansion, and rising concerns for infection control. Additionally, the company's strategic acquisitions and investments in innovative fabrics and designs have enhanced its market competitiveness.

Contact Centers

Expected Growth: 4.2%

Superior Group of Companies, Inc.'s Contact Centers segment growth of 4.2% is driven by increasing demand for outsourced customer service, expansion into new industries, and investments in digital transformation, such as AI-powered chatbots and cloud-based infrastructure, enabling enhanced operational efficiency and improved customer experience.

Intersegment Eliminations

Expected Growth: 0.0%

With 0.0% growth in Intersegment Eliminations, Superior Group of Companies, Inc. is experiencing stagnant internal transactions. This may be due to stable production levels, consistent pricing, and minimal changes in intercompany sales. The lack of growth suggests efficient operations and minimal adjustments between segments, allowing the company to maintain its current financial position.

7. Detailed Products

Uniforms

Superior Group of Companies, Inc. offers a wide range of uniforms for various industries, including healthcare, hospitality, and public safety.

Image Apparel

The company provides customized apparel solutions for businesses, including logo embroidery, screen printing, and other decoration services.

Promotional Products

Superior Group of Companies, Inc. offers a variety of promotional products, such as bags, drinkware, and writing instruments, for businesses to promote their brand.

First Responder and Emergency Medical Services (EMS) Gear

The company provides specialized gear and equipment for first responders and EMS professionals, including apparel, accessories, and medical supplies.

Bags and Backpacks

Superior Group of Companies, Inc. offers a range of bags and backpacks for various industries, including healthcare, education, and outdoor activities.

8. Superior Group of Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Superior Group of Companies, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the large number of customers and the availability of alternative products and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large size and negotiating power.

Threat Of New Entrants

The threat of new entrants is medium due to the moderate barriers to entry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry is high due to the large number of competitors and the high level of competition in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.08%
Debt Cost 9.79%
Equity Weight 66.92%
Equity Cost 10.90%
WACC 10.53%
Leverage 49.44%

11. Quality Control: Superior Group of Companies, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.81$

Current Price

9.81$

Potential

-0.00%

Expected Cash-Flows