TacticScaleWhat Somnigroup International Does & How It Makes Money (SGI)
Updated October 2026 · reflects Somnigroup International's latest reported financials
Mattress maker and retailer behind Tempur-Pedic, Sealy, and Mattress Firm. It earns most of its money selling bedding products through its own stores, websites, and call centers, and through third-party retailers, hotels, and healthcare buyers.
How Somnigroup International makes money
It earns most of its money selling bedding products through its own stores, websites, and call centers, and through third-party retailers, hotels, and healthcare buyers. It also collects licensing fees from other manufacturers that use its brands, technology, and trademarks.
What Somnigroup International does
Somnigroup International, known as Tempur Sealy International until February 2025, is a bedding company based in Dallas whose roots go back to 1846. It designs, manufactures, and distributes mattresses, foundations, adjustable bases, pillows, and accessories under well-known brands including Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy's. The company also sells directly to consumers through retail chains it owns: Mattress Firm, Dreams, Tempur-Pedic stores, and SOVA. It sells through its own websites and call centers and through third-party retailers, distributors, hospitality, and healthcare channels. It also licenses its brands and technology to other manufacturers, so it earns money both from making products and from selling them in stores.
Products & services
- Tempur-Pedic mattresses
- Sealy mattresses
- Stearns & Foster mattresses
- Mattress Firm stores
- Dreams stores
- Adjustable bases and pillows
What is Somnigroup International worth?
On an owner-earnings DCF, Somnigroup International's most-likely value is about $50 versus a recent price near $62 (20% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$27) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 8.1× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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