TELEFLEX INC (TFX) Stock Fundamental Analysis
NYSE:TFX - New York Stock Exchange, Inc. - US8793691069 - Common Stock - Currency: USD
TFX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. TFX scores excellent on profitability, but there are some minor concerns on its financial health. TFX may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, TFX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
TFX had positive earnings in the past year.
In the past year TFX had a positive cash flow from operations.
TFX had positive earnings in each of the past 5 years.
Each year in the past 5 years TFX had a positive operating cash flow.
1.2 Ratios
TFX's Return On Assets of 2.09% is fine compared to the rest of the industry. TFX outperforms 75.94% of its industry peers.
With a decent Return On Equity value of 3.65%, TFX is doing good in the industry, outperforming 77.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.30%, TFX belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
TFX had an Average Return On Invested Capital over the past 3 years of 7.21%. This is in line with the industry average of 7.89%.
The 3 year average ROIC (7.21%) for TFX is below the current ROIC(7.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROIC | 7.3% |
ROA(3y)3.65%
ROA(5y)4.54%
ROE(3y)6.23%
ROE(5y)8.33%
ROIC(3y)7.21%
ROIC(5y)7.23%
1.3 Margins
Looking at the Profit Margin, with a value of 4.96%, TFX is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
TFX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 17.94%, TFX belongs to the top of the industry, outperforming 90.37% of the companies in the same industry.
In the last couple of years the Operating Margin of TFX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 55.68%, TFX is in line with its industry, outperforming 51.87% of the companies in the same industry.
In the last couple of years the Gross Margin of TFX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% |
OM growth 3Y-3.43%
OM growth 5Y0.95%
PM growth 3Y-49.04%
PM growth 5Y-33.65%
GM growth 3Y0.43%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TFX is destroying value.
Compared to 1 year ago, TFX has less shares outstanding
The number of shares outstanding for TFX has been reduced compared to 5 years ago.
TFX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.67 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TFX has a better Altman-Z score (2.67) than 64.71% of its industry peers.
TFX has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as TFX would need 3.97 years to pay back of all of its debts.
The Debt to FCF ratio of TFX (3.97) is better than 86.10% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that TFX is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, TFX is in line with its industry, outperforming 44.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.91
WACC7.98%
2.3 Liquidity
A Current Ratio of 2.28 indicates that TFX has no problem at all paying its short term obligations.
TFX has a Current ratio (2.28) which is comparable to the rest of the industry.
TFX has a Quick Ratio of 1.32. This is a normal value and indicates that TFX is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.32, TFX is not doing good in the industry: 66.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
The Earnings Per Share has been growing slightly by 4.67% on average over the past years.
The Revenue has been growing slightly by 0.29% in the past year.
TFX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
3.2 Future
The Earnings Per Share is expected to grow by 3.02% on average over the next years.
Based on estimates for the next years, TFX will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
Revenue Next 5Y3.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.49, the valuation of TFX can be described as reasonable.
TFX's Price/Earnings ratio is rather cheap when compared to the industry. TFX is cheaper than 96.79% of the companies in the same industry.
When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (27.30), we can say TFX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.19, the valuation of TFX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TFX is valued cheaply inside the industry as 95.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TFX is valued cheaply inside the industry as 94.65% of the companies are valued more expensively.
96.26% of the companies in the same industry are more expensive than TFX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
TFX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y0.74%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.77, TFX pays a better dividend. On top of this TFX pays more dividend than 95.19% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of TFX has a limited annual growth rate of 0.04%.
TFX has paid a dividend for at least 10 years, which is a reliable track record.
As TFX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
41.99% of the earnings are spent on dividend by TFX. This is a bit on the high side, but may be sustainable.
TFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.99%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
116.4
-3.54 (-2.95%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners110%
Inst Owner Change-0.02%
Ins Owners0.29%
Ins Owner Change12.33%
Market Cap5.14B
Analysts54.29
Price Target154.04 (32.34%)
Short Float %2.37%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP41.99%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.22%
Max EPS beat(2)-0.26%
EPS beat(4)2
Avg EPS beat(4)0.49%
Min EPS beat(4)-1.22%
Max EPS beat(4)1.85%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)10
Avg EPS beat(12)2.67%
EPS beat(16)14
Avg EPS beat(16)4.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-0.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0.07%
PT rev (3m)-6.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.78%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-5.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 8.19 | ||
| P/S | 1.71 | ||
| P/FCF | 10.72 | ||
| P/OCF | 8.6 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)13.71
EY11.78%
EPS(NY)14.22
Fwd EY12.21%
FCF(TTM)10.86
FCFY9.33%
OCF(TTM)13.53
OCFY11.62%
SpS68.12
BVpS92.67
TBVpS-17.72
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROCE | 8.32% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 35.73% | ||
| OM | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% | ||
| FCFM | 15.94% |
ROA(3y)3.65%
ROA(5y)4.54%
ROE(3y)6.23%
ROE(5y)8.33%
ROIC(3y)7.21%
ROIC(5y)7.23%
ROICexc(3y)7.52%
ROICexc(5y)7.62%
ROICexgc(3y)37.85%
ROICexgc(5y)40.71%
ROCE(3y)8.23%
ROCE(5y)8.25%
ROICexcg growth 3Y-9.53%
ROICexcg growth 5Y0.44%
ROICexc growth 3Y-3.04%
ROICexc growth 5Y1.71%
OM growth 3Y-3.43%
OM growth 5Y0.95%
PM growth 3Y-49.04%
PM growth 5Y-33.65%
GM growth 3Y0.43%
GM growth 5Y-0.56%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 42.78% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | 321.2% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.67 |
F-Score5
WACC7.98%
ROIC/WACC0.91
Cap/Depr(3y)39.38%
Cap/Depr(5y)37.65%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.24%
Profit Quality(3y)307.01%
Profit Quality(5y)228.72%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
EPS Next Y-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
Revenue Next 5Y3.97%
EBIT growth 1Y-7.13%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year11.15%
EBIT Next 3Y7.21%
EBIT Next 5Y6.23%
FCF growth 1Y73.68%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y64.14%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%