Daily Stock Analysis: Superior Group (SGC)

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Today we look at a small-cap apparel manufacturing company named Superior Group of Companies Inc. Its trading ticker symbol is SGC. This is my third report on Superior Group of Companies Inc for this portfolio. I reviewed it on October 15th and December 24th last year.

Superior Group Of Companies Inc designs apparel products. It manufactures and sells a wide range of uniforms, corporate identity apparel, career apparel, and accessories for the medical, health, industrial, commercial, leisure, and public safety markets. 

The company classifies its businesses into three operating segments based on the types of products and services provided. The Uniforms and Related Products segment consists of sales to customers of uniforms and related items. The Remote Staffing Solutions segment consists of sales of staffing solutions. The Promotional Products segment consists of sales to customers of promotional products and other branded merchandise. 

The company markets its products under the brand names of Fashion Seal Healthcare, HPI, Bamko, and others.

The company was formerly known as Superior Uniform Group, Inc. and changed its name to Superior Group of Companies, Inc. in May 2018. 

Superior Group of Companies, Inc. was founded in 1920 and is headquartered in Seminole, Florida.

Three key data points gauge dividend equities or funds like Superior Group of Companies Inc (SGC):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

SGC Price

Superior Group s price per share closed at $25.76 yesterday. A year ago its price was $10.53. Price per share soared $15.23 or about 145% this past year. 

If Superior Group of Companies Inc stock trades in the range of $7 to $37 this next year, its recent $25.76 price might rise by $1.24 to reach $27.00 by February 18, 2022. That's well above the analyst expectation for 2022.

SGC Dividends

Superior Group's most recently declared quarterly dividend was $0.10 payable on February 26th. Dividends are estimated to total $0.40 per share annually and yield 1.55% at yesterday's $25.76 closing price. 

Over the next year at this time, a $1000 investment would generate $15.50 in cash per share. And a single share bought at yesterday's closing price was nearly $26.00! So, if SGC is your kind of company, wait for the price to drop below $20 to where the dividend income from $1,000 invested meets or exceeds the single share price. You then have a block of stocks to hold forever, no matter where the price rises or falls. 

SGC Returns

Adding the $0.40 annual SGC anticipated dividend to my $1.24 price upside shows a $1.64 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Superior Group of Companies Inc at $25.76 per share and we'd buy 39 shares of SGC stock.

A $10 broker fee (if charged) paid half at purchase and half at sale might cost us about $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated  $1.64 gross gain per share results in a net gain of $1.38 X 39 shares = $53.82 for a 5.35% net gain on a $1,004.64 investment.

Superior Group of Companies Inc shows a possible 5.35% net gain including a 1.55% dividend yield. It could be more, it could be less. And wait to buy until the annual yield from $1000 invested is equal to or greater than the single share price (under $20.00 in this case).

All of the estimates above are speculation based on the past history of Superior Group of Companies Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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