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 keeps 6.8% of every revenue dollar as operating profit, against 6.9% for the median Luxury Goods name.
Operating margin · Luxury Goods median 6.9% · 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
- Gross margin
- 39%
Gross margin
| 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
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