One-glance verdict
Undervalued
$256.61 our estimate vs market $117.26
Wall Street consensus: $124.33 (-51.5% lower than our fair-value estimate)
54% below our estimate, below the bear case
Fundamentals snapshot
Signet Jewelers Limited
SIG · NYQ · Consumer Cyclical · Luxury Goods
Current price
$117.26
52-week range
$71.62 - $129.26
Market cap
$4.49B
Balance sheet
Watch
38.17x Strong cushion
Net debt $697.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.1% last year.
- Reward Returns 19.9% on equity, ahead of 60% of its peers.
- Risk Net debt grew 109.5% over 3 years.
- Risk Stock trades 30.7% above its 5-year average P/E.
What this company does
Signet Jewelers Limited
Signet Jewelers sells diamond jewelry through many well-known brands like Kay, Zales, and Jared, and also online with James Allen and Blue Nile. Their money mostly comes from sales in North America and the United Kingdom. This matters because it shows how many people are buying their jewelry, which helps determine if the company is doing well financially.
How the company got here
Signet Jewelers has a long history, tracing its roots back to 1862. Over the decades, it grew by acquiring and expanding various jewelry store brands. A significant turning point was its focus on consolidating its brand portfolio and investing in e-commerce to adapt to changing shopping habits. This strategic shift aimed to create a more unified and modern retail experience for customers across its diverse range of stores and online platforms.
What it actually does
Signet Jewelers is essentially a large retailer specializing in diamond jewelry. Think of them as the parent company for many familiar jewelry store names you might see in malls or online. They sell a wide variety of jewelry, with a particular focus on diamonds, engagement rings, and other precious items for special occasions. Their business is about helping people celebrate life's moments with meaningful purchases.
North America
This is Signet's largest business segment, covering its operations in the United States and Canada. It includes a vast network of physical stores found in malls, standalone locations, and even smaller kiosks, operating under well-known brands like Kay, Zales, and Jared Jewelers. This segment also encompasses their significant online presence through digital brands such as James Allen and Blue Nile, which are crucial for reaching a wider customer base and offering a broader selection of products. The North America segment is the primary engine of Signet's revenue, making up the bulk of its sales.
International
Signet's International segment focuses on its jewelry retail operations in the United Kingdom and the Republic of Ireland. Here, the company operates stores under brands like H.Samuel and Ernest Jones, catering to customers in these regions. Similar to the North America segment, this part of the business includes both physical store locations and an online sales channel. While smaller than the North American operations, the International segment represents a key part of Signet's global strategy and contributes to its overall sales.
Other
This segment is a bit different from the retail-focused North America and International divisions. The 'Other' segment is involved in the upstream diamond process, specifically the purchase and transformation of rough diamonds into polished stones ready for jewelry making. They also offer diamond polishing services to others. This part of the business is a smaller slice of Signet's overall operations but provides a specialized capability within the diamond supply chain.
What management is betting on now
Signet's management is focused on enhancing its digital capabilities and improving the in-store customer experience to drive future growth. They are investing in their e-commerce platforms to make online shopping more seamless and appealing, recognizing the increasing importance of online sales. Simultaneously, they are working to modernize their physical stores and provide exceptional service to attract and retain customers. The goal is to create an integrated shopping journey, whether a customer is browsing online or visiting a store, ultimately aiming to increase sales and customer loyalty.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$-138.50M
FY2026 Q1
$742.10M
FY2026 Q2
$-211.90M
FY2026 Q3
$62.30M
FY2026 Q4
$-1.50M
FY2027 Q2
$-169.20M
FY2027 Q3
$30.80M
Revenue
$1.53B
Net income
$52.10M
Diluted EPS
1.33
Operating cash flow
$71.20M
Free cash flow
$30.80M
Fetching…
Sources
Revenue
$1.55B
Net income
$31.70M
Diluted EPS
0.78
Operating cash flow
$-144.70M
Free cash flow
$-169.20M
Fetching…
Sources
Revenue
$1.39B
Net income
$20.00M
Diluted EPS
0.49
Operating cash flow
$31.00M
Free cash flow
$-1.50M
Fetching…
Sources
Revenue
$1.54B
Net income
$-9.10M
Diluted EPS
-0.22
Operating cash flow
$86.30M
Free cash flow
$62.30M
Fetching…
Sources
Revenue
$1.54B
Net income
$33.50M
Diluted EPS
0.78
Operating cash flow
$-175.30M
Free cash flow
$-211.90M
Fetching…
Sources
Revenue
$2.35B
Net income
$100.60M
Diluted EPS
2.25
Operating cash flow
$780.70M
Free cash flow
$742.10M
Fetching…
Sources
Revenue
$1.35B
Net income
$7.00M
Diluted EPS
0.12
Operating cash flow
$-75.40M
Free cash flow
$-138.50M
Fetching…
Sources
Is it cheap or expensive?
Fair value $256.61 vs current price $117.26
Wall Street consensus is the average analyst price target: $124.33 (-51.5% lower than our fair-value estimate).
Our most-likely fair value is $256.61 a share — about 118.8% above today's price of $117.26, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $697.6M. Interest coverage 38.2x.
Net debt
$697.60M
Interest coverage
38.17x
Signet Jewelers Limited's profit covers its interest bill about 38.2 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
SIG
BASELINE
Signet Jewelers Limited
Total debt $1.22B Interest coverage 38.17x This is the baseline the peer rows are being compared against.
Total debt $1.50B Interest coverage 1.01x -97% vs SIG Carries about 37.7x less debt cushion than SIG.
Total debt $68.11M Interest coverage 58.83x +54% vs SIG Carries about 1.5x more debt cushion than SIG.
Total debt $340.84M Interest coverage 308.17x +707% vs SIG Carries about 8.1x more debt cushion than SIG.
Total debt $341.94M Interest coverage 1.14x -97% vs SIG Carries about 33.5x less debt cushion than SIG.
Total debt $19.40M Interest coverage 44.53x +17% vs SIG Carries about 1.2x more debt cushion than SIG.
What you should know
The case for and against SIG
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.1% last year.
-
Returns 19.9% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 109.5% over 3 years.
-
Stock trades 30.7% above its 5-year average P/E.
-
Operating margin compressed from 10.7% to 6.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.60x
Forward P/E
8.59x
P/B
2.47x
P/S
0.66x
EV/EBITDA
8.17x
PEG ratio
2.40x
Profitability
How much profit each dollar creates
Gross margin
39.3%
Operating margin
6.3%
Net margin
5.2%
ROE
19.9%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.67x
Current ratio
1.64x
Quick ratio
0.36x
Total debt
$1.22B
Total cash
$526.80M
Growth
How the business has been compounding
Revenue TTM
$6.82B
Revenue 5Y CAGR
-3.4%
EPS TTM
8.62
EPS 5Y CAGR
2.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$694.30M
Free CF TTM
$525.30M
FCF margin
7.7%
Dividend
Shareholder payout
Yield
1.2%
Payout ratio
15.6%
Last ex-div date
2026-10-23