Is Sleep Number Stock a Buy?

Almost everyone is familiar with the company Sleep Number. We've all seen their ads and their stores, and it turns out a lot of people are buying from them. When I began researching this company, there were many factors of their financials that surprised me, but I was very surprised by the fact that the company is as profitable as it is. Let's look at the numbers.

Sleep Number currently trades at a $660 million valuation at time of writing. They currently are trading at around 13.6 times their earnings. In 2022, Sleep Number brought in $2.18 billion in revenue and profited $153.75 million off of that. In 2021, they brought in $1.86 billion and profited $139.19 million. This is impressive growth that the company is experiencing. The company does not offer a dividend even with its profitability. This makes sense though as the company does have debt. 

Sleep Number is currently up around 47% so far over the last month, and they are up a total of around 15.3% year to date so far. Over the last year, they are still down 7.8%. While some market analysts fear how a premium brand like Sleep Number will fare in this current economy, I personally feel like Sleep Number is currently trading at a really reasonable valuation. Obviously, it would have been better to buy this stock a month ago, but I don't think it's a bad buy right now with a longterm strategy in mind. 

Sleep Number was once valued at $151.44 a share. It's currently trading at around $30 a share. I don't think Sleep Number is going to get back to $151.44 a share anytime soon at all, but at $30 a share I think the stock looks very cheap right now.

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