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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3765
Positioning
Market Dominance
Manufacturing
Consumer Goods
$165M
Shelly R. Ibach
Sleep Number Corporation designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products. As of January 2, 2022, it operated approximately 648 retail stores in 50 states. Sleep Number was founded in 1987 and is headquartered in Minneapolis, Minnesota.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$SNBR Sleep Number Corp | 38 | 43 | 32 | 36 | - | - | 26.8% | -17.3% | 59.5% | -5.9% | -9.6% | -12.8% | 0.0% | - | $165M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Sleep Number Corp (SNBR) receives a "Avoid" rating with a composite score of 38.2/100. It ranks #3765 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for SNBR.
View All RatingsROE proxy 26.8% (sector -1.9%)
GM 59% vs sector 44%, OM -6% vs sector 3%
Capital turnover N/A, R&D intensity 2.5%
Rev growth -13%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Sleep Number Corp (SNBR) as Avoid with a composite score of 38.2/100 at a current price of $8.33. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Sleep Number Corp holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 38.2/100 places it at rank #3765 in our full universe.
No Moat
Very High
Poor
Fair Value
Gross margins of 59% signal strong pricing power.
Returns on equity of 26.8% exceed cost of capital.
Stable competitive position in a defensive sector.
Vulnerability to macroeconomic shocks and interest rate volatility.
Sleep Number Corp represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Sleep Number Corp with an Avoid rating, assigning a composite score of 38.2/100 and 1 out of 5 stars. Ranked #3765 of 7,333 stocks, SNBR falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
SNBR's quality score of 43/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 26.8% (sector avg: -1.9%), gross margins of 59.5% (sector avg: 44.1%), net margins of -9.6% (sector avg: 1.0%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 32/100, SNBR appears somewhat expensive relative to its fundamentals. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Sleep Number Corp's investment score of 34/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of -12.8% vs. a sector average of 6.7% and a return on assets of -17.3% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SNBR is currently showing below-average momentum at 36/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -12.8% year-over-year, while a beta of 1.89 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
Sleep Number Corp registers a low stability score of 24/100, indicating high volatility and potentially stressed financial conditions. Key stability metrics include a beta of 1.89. Stocks at this level carry elevated capital loss risk and may be unsuitable for conservative portfolios without careful risk management.
The short interest score of 43/100 for SNBR suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 1.89), micro-cap liquidity risk. With a $165M market cap (micro-cap), Sleep Number Corp may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Sleep Number Corp is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3765 of 7,333 overall (49th percentile). Key comparisons include ROE of 26.8% exceeding the -1.9% sector median and operating margins of -5.9% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SNBR currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Stability (24) would have the largest impact on the composite score.
ROE 1512% BELOW SECTOR MEDIAN
Gross Margin 35% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 335% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
MINNEAPOLIS, February 17, 2026--Sleep Number Corporation (Nasdaq: SNBR) debuted a campaign to highlight its newest product, marking a major shift in how the brand connects with consumers by moving beyond traditional mattress specs to focus on real-life moments. The ad is inspired by the insight that what you do today changes what you need tonight, and every moment deserves a great night’s sleep. Created in partnership with Fallon, the spot showcases ComfortMode, the company’s most comfortable ma
Insiders who bought Sleep Number Corporation ( NASDAQ:SNBR ) stock lover the last 12 months are probably not as...
Shares of bedding manufacturer and retailer Sleep Number (NASDAQ:SNBR) jumped 12.8% in the afternoon session after reports revealed that its Minneapolis headquarters building sold for $235 million, a price significantly higher than its assessed value.

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