Is TEMPUR SEALY INTERNATIONAL I (NYSE:TPX) suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TEMPUR SEALY INTERNATIONAL I (NYSE:TPX) is suited for quality investing. Investors should of course do their own research, but we spotted TEMPUR SEALY INTERNATIONAL I showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of TEMPUR SEALY INTERNATIONAL I

• TEMPUR SEALY INTERNATIONAL I has achieved substantial revenue growth over the past 5 years, with a 12.75% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• TEMPUR SEALY INTERNATIONAL I exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 30.12% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 4.37, TEMPUR SEALY INTERNATIONAL I exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 98.13%, TEMPUR SEALY INTERNATIONAL I highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• TEMPUR SEALY INTERNATIONAL I has consistently achieved strong EBIT growth over the past 5 years, with a 17.05% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• TEMPUR SEALY INTERNATIONAL I has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall TPX gets a fundamental rating of 5 out of 10. We evaluated TPX against 66 industry peers in the Household Durables industry. While TPX has a great profitability rating, there are some minor concerns on its financial health. TPX is quite expensive at the moment. It does show a decent growth rate.

Check the latest full fundamental report of TPX for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.