SGI SGI

Name: SGI Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored April 5, 2026

Price at analysis: $72.90

Crucible Score

47.6

C-

Quality × Value Composite

KQI — Quality

52.3

Fundamental Quality Index

KVI — Value

41.8

Valuation Attractiveness Index

Crucible Verdict — SGI

SGI presents a mediocre investment case with a C- Crucible Score of 47.6, held back by weak diversification (30) and poor growth prospects (44) despite decent financial quality (64). The stock trades at a modest 8% discount to fair value, but the 51% earnings beat rate over five years signals inconsistent execution. Management's performance-based compensation and insider buying provide the only bright spots in an otherwise unremarkable profile.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

63.5

Growth Profile⚠

44.1

Moat Durability

50.8

Management Effectiveness

57.7

Diversification & Resilience

29.5

Market Position

44.0

Weakest dimension: Diversification & Resilience (29.5)

◆ KVI Value Dimensions

DCF Margin of Safety

58.2

FCF Yield & Cash Returns

45.2

Relative Valuation

32.0

Growth-Adjusted Value

20.4

Historical Valuation

33.9

Macro Context

48.2

◆ DCF Valuation Scenarios

Bear Case

$52.18

Base Case

$78.45

Bull Case

$112.63

Price at Analysis

$72.90

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$52.18	4.0%	12.5%	11.3%
🟢 Base	$78.45	7.0%	14.0%	10.6%
🟢 Bull	$112.63	10.0%	16.0%	10.0%

Key Assumptions: Revenue grew sharply from ~$4.9B to ~$7.5B in the most recent year, likely driven by acquisitions given the corresponding jump in debt from ~$3.3B to $8.3B. Operating margins have historically ranged 12-18%, with WACC calculated using CAPM at risk-free 4.31% plus beta 1.33 times a 5.5% ERP for base case (7.3% equity cost), blended with cost of debt reflecting the heavy leverage. Capex intensity has averaged ~3% of revenue, and FCF conversion has been volatile due to acquisition-related spending.

◆ Financial Snapshot

Profitability

Gross Margin42.8%

Operating Margin10.2%

Net Margin5.1%

ROIC7.9%

ROE-173.9%

Balance Sheet

Balance SheetCR: 0.83

Cash ConversionFCF/EPS: 1.65x

Capital IntensityCapex/Rev: 2.2%

Altman Z-Score2.37 (Grey)

Piotroski F-Score5/9 (Mixed)

Growth

Revenue CAGR-37.6% CAGR (suspect)

Earnings CAGR-50.2% CAGR (suspect)

Growth ConsistencyCV: 3.09

Segment BreadthInsufficient segments

Quarterly TrendRev∆, Margin↑, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOMEadi Shalal · 5 years

CEO Ownership4.0%

Compensation73% performance-based

Insider ActivityBuying

Capital AllocationROIC 7.9% vs WACC 2.6%

Earnings Beat Rate51% (9/20)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted April 5, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.