SGML is now trading at 9.8x times' Forward P/E. The company has had limited operations in the last few years. However, based on consensus estimates, sales are expected to explode in FY 2024, expecting to be around $880M. The balance sheet is leveraged with a long-term debt/equity of 0.58x, but we think the leverage levels will go down as earnings grow next year. Shares have been under pressure due to the complexity in corporate governance. The Chief Controls officer has resigned. Over the past year, Sigma has lost a number of top executives. Among them its co-CEO Calvyn Gardner, the husband of current CEO Ana Cabral-Gardner, whom he is divorcing. Gardner was fired for trading Sigma shares during a quarterly earnings blackout period. Essentially, the company has a credibility issue right now.
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