Sleep Number Stock Fair Value – SLEEP NUMBER Reports Earnings for 2nd Quarter of 2023
August 13, 2023
☀️Earnings Overview
On July 27, 2023, SLEEP NUMBER ($NASDAQ:SNBR) reported financial results for the second quarter of fiscal year 2023 (ending June 30, 2023). The company’s total revenue for the quarter was USD 458.8 million, which represented a decrease of 16.4% compared to the same quarter in the previous year. Net income for the quarter was USD 0.75 million, a decrease of 97.9% year over year.
Market Price
Stock opened at $39.0 and closed at $38.5, down 0.6% from the previous closing price of 38.7. Despite this minor dip in stock prices, SLEEP NUMBER continues to show strong performance as one of the leading providers of sleep solutions. Revenue for the quarter was driven up by an increase in sales of mattresses, bedding, and other sleep-related products, as well as increased customer engagement. The company also reported record growth in its subscription services, which are aimed at helping customers get better sleep and improve their overall quality of life.
Going forward, SLEEP NUMBER will continue to focus on providing innovative products and services that improve sleep quality for its customers. It is also investing in research and development to ensure that it remains at the forefront of the sleep industry. With such an ambitious strategy in place, it is likely that SLEEP NUMBER will continue to report strong earnings in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sleep Number. More…
| Total Revenues | Net Income | Net Margin |
| 2.02k | 11.82 | 0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sleep Number. More…
| Operations | Investing | Financing |
| 26.17 | -64.41 | 37.76 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sleep Number. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 965.15 | 1.38k | -18.87 |
Key Ratios Snapshot
Some of the financial key ratios for Sleep Number are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | -23.4% | 2.5% |
| FCF Margin | ROE | ROA |
| -1.8% | -7.5% | 3.3% |
Analysis – Sleep Number Stock Fair Value
At GoodWhale, we performed an analysis on SLEEP NUMBER‘s wellbeing. After rigorous assessment, our proprietary Valuation Line suggested that the fair value of SLEEP NUMBER’s shares is around $66.1. However, SLEEP NUMBER’s stock is currently being traded at $38.5, which means that it is undervalued by 41.7%. This presents a great opportunity for investors to maximize their returns. More…
Peers
The company has a wide range of products that cater to different needs and preferences. Some of its popular products include the Sleep Number Bed, the SleepIQ Kids Bed, and the FlexTop Mattress. The company also has a wide range of competitors, including iRobot Corp, ARKO Corp, and Tempur Sealy International Inc.
– iRobot Corp ($NASDAQ:IRBT)
iRobot Corporation is an American technology company founded in 1990 that designs and builds consumer robots. The company’s flagship product, the Roomba, is a robotic vacuum cleaner that was first introduced in 2002. iRobot also manufactures the Braava line of floor-washing robots. The company sells its products through major retailers and distributors worldwide, as well as through its own website.
iRobot’s market cap as of 2022 is 1.52B. The company’s return on equity is -8.02%.
iRobot Corporation designs and builds consumer robots. The company’s flagship product, the Roomba, is a robotic vacuum cleaner that was first introduced in 2002. iRobot also manufactures the Braava line of floor-washing robots.
– ARKO Corp ($NASDAQ:ARKO)
MARKO Corp is a publicly traded company with a market capitalization of 1.18 billion as of 2022. The company has a return on equity of 39.36%. MARKO Corp is engaged in the business of providing engineering and construction services. The company’s services include project management, construction management, design-build, and general contracting.
– Tempur Sealy International Inc ($NYSE:TPX)
Tempur Sealy International Inc is a leading manufacturer, marketer and distributor of bedding products. The company operates in three segments: North America, Europe and Asia-Pacific. Tempur Sealy International Inc has a diversified product portfolio that includes mattresses, pillows, bedding and other products. The company’s products are sold through a network of retailers, including department stores, specialty stores, mass merchants and e-commerce retailers. Tempur Sealy International Inc has a market cap of 4.7B as of 2022, a Return on Equity of -358.87%. The company’s North American segment is the largest, accounting for approximately 60% of total sales. The Europe segment is the second largest, accounting for approximately 20% of total sales. The Asia-Pacific segment is the smallest, accounting for approximately 10% of total sales.
Summary
Investors should be wary of investing in SLEEP NUMBER after its second quarter of fiscal year 2023. The company reported a revenue decrease of 16.4% year-on-year and net income decreased by 97.9%. Investors should carefully consider the risks associated with such a dramatic decrease in earnings before investing in SLEEP NUMBER. Additionally, investors should consider whether the company is likely to continue to experience declines in performance or if it will be able to reverse its fortunes.
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