Select Comfort Corp.: Leads amongst peers with strong fundamentals

Select Comfort Corp. relative valuation is OVERVALUED and it has a fundamental analysis score of 81.

Our analysis is based on comparing Select Comfort Corp. with the following peers – Tempur Sealy International Inc, LaZBoy Incorporated, Leggett & Platt, Incorporated, Hooker Furniture Corporation, Flexsteel Industries, Inc., Ethan Allen Interiors Inc., Nova Lifestyle, Inc., RH and Haverty Furniture Companies, Inc. (TPX-US, LZB-US, LEG-US, HOFT-US, FLXS-US, ETH-US, NVFY-US, RH-US and HVT-US).

Select Comfort Corp. has shown good performance overall, both over the last one year (at 63.77%) as well as over the last month (at 36.49%). Share price performance over the last month, though has been lower than that over the last year. But Select Comfort Corp.’s stock has done better than its overall peer group whose performance was 3.44% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • It currently trades at a Price/Book ratio of (10.31).
  • SCSS-US outperforms its peers with a relatively high operating performance and the market also expects faster growth relative to its peers
  • SCSS-US‘s median net profit margins and relatively high asset efficiency give it some operating leverage.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • SCSS-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high gross margin suggests some differentiation with pricing advantages versus peers.
  • Compared with the peers chosen, SCSS-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
  • The company’s level of capital investment is relatively low and suggests it is milking the business.
  • SCSS-US currently does not have any debt.
  • Our analysis rates Select Comfort Corp. as OVERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

SCSS-US‘s share price performance of 63.77% over the last 12 months is above peer median of 18.55%. The 30-day trend in its share price performance of 36.49% is also above the peer median of 3.44% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Select Comfort Corp.’s price of USD 33.18 is greater than CapitalCube’s implied price of USD 29.48. At this level, CapitalCube believes that Select Comfort Corp. is overvalued. Over the last 52 week period, the stock has fluctuated between USD 17.95 and USD 33.29.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Select Comfort Corp. designs, manufactures, markets, and distributes beds, proprietary beds, and other sleep-related accessory products. It offers beds under the brand name Sleep Number. The company was founded by Robert Walker and JoAnn Walker in 1987 and is headquartered in Minneapolis, MN.

Disclaimer

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