| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 26.2x | 17.8x | Around median | |
Growth | 85 | 27.1% | 7.1% | Top tier | |
Quality | 78 | 8.0% | 4.5% | Top tier | |
Safety | 45 | 5.0x | 2.6x | Around median | |
Capital Return | 71 | 0.96% | 2.12% | Top tier | |
Momentum | 17 | -23.1% | 2.9% | Bottom tier | |
Sentiment | 83 | 7 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Somnigroup International operates through an integrated model that combines the manufacturing and marketing of sleep products and mattresses with direct distribution and retail sales. Its portfolio includes Tempur-Pedic, Sealy, and Stearns & Foster, while Mattress Firm provides it with an extensive retail network in the United States, and Dreams and company-owned Tempur-Pedic stores expand its direct international presence. Revenue comes from wholesale sales to retailers, direct sales, and stores, while profitability benefits from integration across manufacturing, distribution, and joint advertising.
In Q2 fiscal 2026, revenue was $1.8 billion, gross profit was $817.2 million, net income was $110.9 million, and reported earnings per share were $0.52. These figures represent a gross margin of approximately 45.4% and a net income margin of approximately 6.2%, while management reported record adjusted earnings per share of $0.58, up 9% from the comparable period. Mattress Firm sales were approximately $922 million, slightly more than half of consolidated revenue, with modest comparable-store sales growth.
Profitability trends varied clearly across the group's business units in Q2 fiscal 2026. The adjusted gross margin of the Tempur-Pedic Sealy North America business increased by 680 basis points to 61.8%, and its adjusted operating margin rose by 400 basis points to 26.7%, driven by synergies, operating efficiency, and mix; in contrast, Mattress Firm's adjusted gross margin declined by 240 basis points to 33.3% and its operating margin fell by 130 basis points to 6.5%, while the international operating margin also declined by 120 basis points to 12.4%. On a trailing-twelve-month basis in fiscal 2026, the latest EDGAR data indicate revenue of $7.6 billion and net income of $533.3 million.
The average analyst price target is $97.83, within a range of $90 to $106, with a consensus rating of “Buy.” The average target is very close to the top of the 52-week range of $98.56, while the highest target exceeds that peak and the lowest target remains within the $60.39–$98.56 range; this reflects relatively high expectations for successful synergies and margin improvement despite weak demand and pressure on Mattress Firm and international business margins.
Figures in the text are as of 2026-09-03; the live price is shown at the top of the page.
In Q2 fiscal 2026, Somnigroup generated revenue of $1.8 billion and adjusted earnings per share of $0.58, up 9% from the comparable period. Sales and cost synergy benefits in North America totaled $30 million, including approximately $15 million from cost synergies. These benefits, together with productivity and sales mix, helped raise North America's adjusted gross margin by 680 basis points to 61.8% and its adjusted operating margin by 400 basis points to 26.7%.
Mattress Firm sales were approximately $922 million in Q2 fiscal 2026, compared with consolidated revenue of $1.8 billion, and its comparable-store sales grew modestly. The company expects Tempur Sealy brands and private labels to represent a mid-sixties percentage of Mattress Firm's total sales during fiscal 2026. Increasing this share is expected to provide a $65 million benefit in adjusted earnings before interest, taxes, depreciation, and amortization compared with fiscal 2025, but it also increases the interdependence of the manufacturing and retail businesses.
The company will begin rolling out the new Stearns & Foster assortment at the end of Q3 fiscal 2026, with the rollout continuing through early 2027. The updates include an enhanced cooling system, a stronger microcoil support layer, and new hybrid technology, with the number of higher-priced models increasing by more than 50%. The company aims to reduce price overlap with the upper end of Sealy and raise the average selling price, although management expects most of the financial benefit to be realized in 2027 and beyond.
Automated analysis for informational purposes only — not investment advice.
Management expects adjusted earnings per share of between $2.85 and $3.15 for fiscal 2026, with revenue of approximately $7.6 billion and adjusted earnings before interest, taxes, depreciation, and amortization of approximately $1.39 billion at the midpoint. It also targets a reported gross margin slightly above 45%, supported by approximately 100 basis points of net margin expansion resulting from efficiency, synergies, and operating leverage. The guidance assumes a mid-single-digit percentage contraction in the global bedding market, low-single-digit growth for Tempur Sealy in North America and the international business, and a modest decline in Mattress Firm comparable sales.
Consolidated debt net of cash was $4.3 billion at the end of Q2 fiscal 2026, and the leverage ratio under the senior credit facility reached 2.99 times. This places the company within its target range of between two and three times, after reducing net debt by more than $500 million during the twelve months ended that quarter. The company recorded operating cash flow of $236 million and free cash flow of $182 million in the quarter, while the refinancing extended the credit facility's maturities to 2031.
Management said on the August 6, 2026 call that it had obtained most of the required regulatory approvals and that the Leggett & Platt shareholder vote was scheduled for August 20, 2026, with closing expected before the end of Q3 fiscal 2026. It described Leggett & Platt as a diversified component manufacturer and a long-standing supplier to Somnigroup, and expects the combination to expand vertical integration and the addressable market into industries beyond bedding. Management also expects to incorporate the transaction into guidance after closing and achieve immediate accretion to adjusted earnings per share before synergies, but acknowledged that integrating Leggett & Platt will add operational complexity to the group.
