Sleep Number Corporation
$2.45
-14%Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides adjustable bases under the FlextFit, and smart beds under the Sleep Number 360 brands. The company sells its products directly to consumers through retail, online, phone, and chat as well as through its e-commerce activities. As of January 2, 2022, it operated approximately 648 retail stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -0.4).
Valuation inputs: P/E -0.4, earnings yield N/A, momentum -14.0%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +22.8%, ROIC +0.9%).
Profitability stack: net margin -9.3%, ROE +22.8%, ROIC +0.9%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +185.1%, momentum -14.0%, net margin -9.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Sleep Number Corporation Market vs Earnings Trajectory
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Sleep Number Corporation Fair Value Envelope
Sleep Number Corporation Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Sleep Number Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
Sleep Number Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Sleep Number Corporation Street Expectations Map
Wall Street analysts project that SNBR stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 4.00, with estimates ranging from a low of 4.00 to a high of 4.00.
The consensus 1-year price target stands at 4.00, with estimates ranging from a low of 4.00 to a high of 4.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Sleep Number Corporation Insider Positioning
During the last 12 months, insiders have purchased $49K and sold $37K worth of SNBR shares, resulting in $12K of net buying activity.
3 Months
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3-6 Months
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6-9 Months
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9-12 Months
7.0K
49.28K
3.6K
37.19K
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Top Buyers
Ryder Robert P
Officer: Interim Cfo
$49K
Top Sellers
Lee Francis K
Other: Strategic Advisor
$29K
Krusmark Christopher D
Officer: Evp & Chief H.R. Officer
$9K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $12K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Insider Participation
2 insider sellers vs. 1 buyers. More insiders selling than buying suggests cautious or negative sentiment.
No Dividend Yield Data
SNBR has not reported any dividend yield values in the available annual periods.
snbr Dividend History
Learning Layer
Related Guides
Build conviction on SNBR by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.