Somnigroup International Inc. (SGI) Stock Price & How to Invest

Somnigroup makes and sells beds. The manufacturing side owns Tempur-Pedic, Sealy, Stearns & Foster and Sleepy's, selling into wholesale accounts and consumers across more than 100 countries. The retail side owns Mattress Firm in the United States, Dreams in the United Kingdom, the Sova banner and company-operated Tempur-Pedic stores, a footprint of more than 2,000 US locations. Management reports three segments. Tempur Sealy North America booked $601.8 million of net sales in the second quarter of 2026, down 5.7% year over year, at a 25.9% operating margin. Tempur Sealy International booked $299.5 million, up 2.0%, at 12.4%. Mattress Firm booked $922.2 million, down 2.8%, at 6.4%. The margin spread between those three lines drives almost everything else in the model, because manufacturing earns roughly four times the operating margin retail does, and the acquisition roughly doubled revenue while diluting the consolidated margin. Trailing twelve-month revenue through June 30, 2026 was ~$7.62 billion against ~$4.93 billion in fiscal 2024, the last full year before Mattress Firm consolidated. Total assets rose from ~$5.98 billion at the end of 2024 to ~$11.61 billion, and goodwill from ~$1.07 billion to ~$4.59 billion.

Unit demand for mattresses is what moves the numbers, and it tracks housing turnover and big-ticket consumer credit far more than anything company-specific. Management told investors during 2026 that the global bedding industry would shrink by a mid-single-digit percentage for the year, a downgrade from an earlier flat-to-slightly-down call, and trimmed full-year adjusted EPS guidance to $2.85 to $3.15 from $3.00 to $3.40. The shares followed, closing at ~$64.71 on August 21, 2026 against a 52-week high of $98.56 set on February 12, 2026, roughly 35% below that peak and about 20% lower over twelve months. What the market is paying for is the synergy case. Owning the shelf is supposed to let Somnigroup keep the retail markup on its own product and take cost out of a combined supply chain. Two things complicate that. A 2025 FTC settlement limits how far floor control can go, and the balance sheet carries ~$6.41 billion of total debt including capitalized store leases against ~$112 million of cash. In April 2026 the company then agreed to buy Leggett & Platt in stock, layering a second integration on top of one that is not finished.

Leverage is the first-order risk. Total debt of ~$6.41 billion including capitalized store leases sits against ~$112 million of cash, a current ratio of 0.75 and total equity of ~$3.24 billion. Goodwill of ~$4.59 billion exceeds book equity outright, so a sustained shortfall against the Mattress Firm purchase-price assumptions would produce an impairment that wipes out reported equity without touching cash. Return on invested capital of ~7.96% against return on equity of ~17.52% shows how much of that spread is leverage rather than operating quality. The industry backdrop is the second problem. Management cut its 2026 view twice in effect, moving from a flat-to-slightly-down global bedding market to a mid-single-digit decline, and cut adjusted EPS guidance to $2.85 to $3.15 from $3.00 to $3.40. Mattress purchases are financed big-ticket discretionary items, so consumer credit costs feed directly into Mattress Firm's gross margin, as the 240 basis point contraction in the June quarter showed. The FTC settlement that permitted the deal is a live constraint, not a closed chapter. Somnigroup divested roughly 176 locations to Mattress Warehouse, including 73 Mattress Firm stores plus the entire Sleep Outfitters chain of 103 stores and seven distribution centers, and committed to reserve Mattress Firm floor slots for at least five years for third-party mattresses priced at $1,500 and above. Those slots cap exactly the shelf control the acquisition was meant to deliver, and they created a better-capitalized regional competitor in the process. Integration risk now stacks: the Leggett & Platt merger adds automotive and industrial end markets with their own cycles before Mattress Firm is settled, and issues ~8.6% of the combined company in new stock. Short interest at ~6.07% of shares outstanding reflects how contested the setup is.

9 analysts publish price targets on SGI, averaging $89.44 against a $64.71 price as of August 2026, or +38.2%. The published targets run from $66.00 to $105.00, a moderate spread, and the ratings split 9 buy, 1 hold, 0 sell. Over the last six months there has been 1 raise and 7 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full SGI forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Somnigroup International Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Vertical integration is doing real work on margin. Tempur Sealy North America posted a 61.8% adjusted gross margin in the second quarter of 2026 against 55.0% a year earlier, an improvement of about 680 basis points, with adjusted operating margin moving from 22.7% to 26.7%. The most optimistic published target, $105.00, assumes this works close to its best case.

The case against. Leverage is the first-order risk. The most pessimistic target, $66.00, is roughly what SGI is worth if this bites instead.

Read the full bull and bear case on SGI, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Somnigroup International Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$7.62 billion for the twelve months to June 30, 2026, against ~$7.48 billion in fiscal 2025 and ~$4.93 billion in fiscal 2024. The 51.6% jump in fiscal 2025 is almost entirely the Mattress Firm consolidation from February 5, 2025 rather than organic growth. First-half 2026 net sales of $3,625.0 million were up 4.0% year over year purely because 2026 carries a full six months of Mattress Firm while 2025 carried under five, and the second quarter, the first clean like-for-like comparison, fell 3.0% to $1,823.5 million.
• Earnings and EPS: Trailing net income of ~$533.3 million on diluted EPS of $2.51, against $384.1 million and $1.84 in fiscal 2025 and $384.3 million and $2.16 in fiscal 2024. Second-quarter 2026 diluted EPS was $0.52 versus $0.47, up 10.6%, with adjusted EPS of $0.58 versus $0.53. First-half net income of $215.1 million against $65.9 million looks explosive only because the prior-year half absorbed acquisition and integration charges. Management guides to $2.85 to $3.15 of adjusted EPS for full-year 2026, roughly 11% growth at the midpoint, cut from an earlier $3.00 to $3.40.
• Segment mix (Q2 2026): Mattress Firm $922.2 million of net sales at a 6.4% operating margin, Tempur Sealy North America $601.8 million at 25.9%, Tempur Sealy International $299.5 million at 12.4%. Retail is now ~51% of revenue and a far smaller share of profit. North America adjusted gross margin of 61.8% was up ~680 basis points year over year while International slipped to 47.4% from 48.2% and Mattress Firm's adjusted gross margin fell 240 basis points to 33.3%. The three segments sum exactly to consolidated net sales, so intercompany shipments to Mattress Firm are already eliminated inside the reported segment figures.
• Cash flow and balance sheet: First-half 2026 operating cash flow of $482.8 million against $292.5 million a year earlier, capital expenditures of $115.2 million, and trailing free cash flow of ~$769 million. Cash of ~$112 million at June 30, 2026 against ~$6.41 billion of total debt including capitalized store leases, or ~$4.4 billion of funded debt on the company's own reporting basis at 2.99x leverage. Total assets ~$11.61 billion versus ~$5.98 billion at the end of 2024, goodwill ~$4.59 billion versus ~$1.07 billion, total equity ~$3.24 billion, current ratio 0.75 and debt to equity of ~1.98x.
• Market pricing: ~$64.71 per share on August 21, 2026, a market capitalization of ~$13.61 billion on ~210.4 million shares, inside a 52-week range of $60.39 to $98.56 with the high set February 12, 2026. Trailing P/E of ~25.8x, ~21.6x the midpoint of the company's own 2026 adjusted EPS guidance, ~1.79x sales, ~4.21x book. Enterprise value of ~$19.91 billion works out to ~15.6x trailing EBITDA of ~$1.27 billion and ~2.61x sales. Dividend of $0.68 annualized yields ~1.05% at a ~27% payout. Short interest is ~12.76 million shares, ~6.07% of the float.

The gap between the ~1.79x price-to-sales multiple and the ~2.61x EV-to-sales multiple is the entire leverage story in two numbers, since ~$6.3 billion of net debt sits between equity value and enterprise value. Another reconciliation matters as much: the company reports 2.99x leverage against ~$4.4 billion of funded debt, implying credit-agreement adjusted EBITDA near ~$1.47 billion, well above the ~$1.27 billion reported figure that enterprise-value screens use. Anyone comparing SGI with an asset-light bedding peer on EV/EBITDA is comparing a company that leases more than 2,000 stores with one that does not.

Other names that sit close to SGI: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get SGI exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so SGI sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where SGI fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

As of August 2026, SGI is a leveraged, vertically integrated bedding operator trading around $64.71 against a 52-week range of $60.39 to $98.56, carrying ~$19.9B of enterprise value on ~$1.27B of trailing EBITDA. The valuation is priced against synergy capture and an industry recovery, neither of which showed up in the June quarter.

Whether SGI is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is SGI a buy or a sell?, and where the stock could go from here in the SGI stock forecast.

For income investors, whether SGI pays a dividend and how the payout looks is covered in does SGI pay a dividend? And to weigh SGI against a peer, read the full side-by-side comparisons: SGI vs BOBS and SGI vs AMZN.