TELEFLEX INC (TFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFX - US8793691069 - Common Stock
112.81 USD
+2.8 (+2.55%)
112.81 USD
0 (0%)
Taking everything into account, TFX scores 6 out of 10 in our fundamental rating. TFX was compared to 185 industry peers in the Health Care Equipment & Supplies industry. TFX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TFX. These ratings could make TFX a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TFX had positive earnings in the past year.
TFX had a positive operating cash flow in the past year.
TFX had positive earnings in each of the past 5 years.
In the past 5 years TFX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TFX (-4.17%) is better than 69.19% of its industry peers.
The Return On Equity of TFX (-8.58%) is better than 68.65% of its industry peers.
TFX has a better Return On Invested Capital (6.93%) than 81.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TFX is in line with the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.17% | ||
| ROE | -8.58% | ||
| ROIC | 6.93% |
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
In the last couple of years the Profit Margin of TFX has declined.
Looking at the Operating Margin, with a value of 17.59%, TFX belongs to the top of the industry, outperforming 89.19% of the companies in the same industry.
TFX's Operating Margin has been stable in the last couple of years.
TFX's Gross Margin of 53.67% is in line compared to the rest of the industry. TFX outperforms 49.73% of its industry peers.
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 | 17.59% | ||
| PM (TTM) | N/A | ||
| GM | 53.67% |
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.
The number of shares outstanding for TFX has been reduced compared to 1 year ago.
TFX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TFX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TFX's Altman-Z score of 2.25 is fine compared to the rest of the industry. TFX outperforms 62.16% of its industry peers.
The Debt to FCF ratio of TFX is 10.11, which is on the high side as it means it would take TFX, 10.11 years of fcf income to pay off all of its debts.
TFX has a Debt to FCF ratio of 10.11. This is in the better half of the industry: TFX outperforms 72.97% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that TFX is somewhat dependend on debt financing.
TFX's Debt to Equity ratio of 0.67 is on the low side compared to the rest of the industry. TFX is outperformed by 65.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.25 |
ROIC/WACC0.7
WACC9.96%
2.3 Liquidity
TFX has a Current Ratio of 2.57. This indicates that TFX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.57, TFX is in line with its industry, outperforming 53.51% of the companies in the same industry.
TFX has a Quick Ratio of 1.53. This is a normal value and indicates that TFX is financially healthy and should not expect problems in meeting its short term obligations.
TFX has a Quick ratio (1.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.19% over the past year.
TFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.67% yearly.
The Revenue has been growing slightly by 5.43% in the past year.
The Revenue has been growing slightly by 3.26% on average over the past years.
EPS 1Y (TTM)5.19%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%5.16%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%19.45%
3.2 Future
TFX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.83% yearly.
The Revenue is expected to grow by 6.72% on average over the next years.
EPS Next Y1.67%
EPS Next 2Y4.2%
EPS Next 3Y4.48%
EPS Next 5Y6.83%
Revenue Next Year7.68%
Revenue Next 2Y9.09%
Revenue Next 3Y7.44%
Revenue Next 5Y6.72%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.94, the valuation of TFX can be described as very cheap.
97.30% of the companies in the same industry are more expensive than TFX, based on the Price/Earnings ratio.
TFX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
With a Price/Forward Earnings ratio of 7.42, the valuation of TFX can be described as very cheap.
Based on the Price/Forward Earnings ratio, TFX is valued cheaply inside the industry as 98.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.92, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
94.05% of the companies in the same industry are more expensive than TFX, based on the Enterprise Value to EBITDA ratio.
TFX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TFX is cheaper than 90.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.86 | ||
| EV/EBITDA | 8.65 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TFX does not grow enough to justify the current Price/Earnings ratio.
TFX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.75
PEG (5Y)1.7
EPS Next 2Y4.2%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.24%.
Compared to an average industry Dividend Yield of 0.19, TFX pays a better dividend. On top of this TFX pays more dividend than 94.59% of the companies listed in the same industry.
TFX's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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
The earnings of TFX are negative and hence is the payout ratio. TFX will probably not be able to sustain this dividend level.
TFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-18.59%
EPS Next 2Y4.2%
EPS Next 3Y4.48%
112.81
+2.8 (+2.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners108.18%
Inst Owner Change-0.02%
Ins Owners0.3%
Ins Owner Change1.36%
Market Cap4.99B
Revenue(TTM)3.19B
Net Income(TTM)-327.97M
Analysts54.29
Price Target140.78 (24.79%)
Short Float %3.92%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP-18.59%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.63%
Min EPS beat(2)7.42%
Max EPS beat(2)9.84%
EPS beat(4)2
Avg EPS beat(4)3.94%
Min EPS beat(4)-1.22%
Max EPS beat(4)9.84%
EPS beat(8)6
Avg EPS beat(8)3.15%
EPS beat(12)10
Avg EPS beat(12)3.75%
EPS beat(16)14
Avg EPS beat(16)3.38%
Revenue beat(2)2
Avg Revenue beat(2)0.74%
Min Revenue beat(2)0.22%
Max Revenue beat(2)1.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)1.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.64%
Revenue beat(12)6
Avg Revenue beat(12)-0.2%
Revenue beat(16)8
Avg Revenue beat(16)-0.4%
PT rev (1m)3.33%
PT rev (3m)-1.27%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-5.87%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)0.92%
Revenue NQ rev (3m)-5.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.94 | ||
| Fwd PE | 7.42 | ||
| P/S | 1.56 | ||
| P/FCF | 18.86 | ||
| P/OCF | 12.75 | ||
| P/B | 1.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.65 |
EPS(TTM)14.2
EY12.59%
EPS(NY)15.21
Fwd EY13.48%
FCF(TTM)5.98
FCFY5.3%
OCF(TTM)8.85
OCFY7.84%
SpS72.19
BVpS86.49
TBVpS-25.49
PEG (NY)4.75
PEG (5Y)1.7
Graham Number166.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.17% | ||
| ROE | -8.58% | ||
| ROCE | 7.91% | ||
| ROIC | 6.93% | ||
| ROICexc | 7.3% | ||
| ROICexgc | 27.39% | ||
| OM | 17.59% | ||
| PM (TTM) | N/A | ||
| GM | 53.67% | ||
| FCFM | 8.29% |
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%
ROICexgc growth 3Y-9.53%
ROICexgc 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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.11 | ||
| Debt/EBITDA | 3.05 | ||
| Cap/Depr | 44.78% | ||
| Cap/Sales | 3.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.32% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 2.25 |
F-Score5
WACC9.96%
ROIC/WACC0.7
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)5.19%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%5.16%
EPS Next Y1.67%
EPS Next 2Y4.2%
EPS Next 3Y4.48%
EPS Next 5Y6.83%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%19.45%
Revenue Next Year7.68%
Revenue Next 2Y9.09%
Revenue Next 3Y7.44%
Revenue Next 5Y6.72%
EBIT growth 1Y3.97%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year11.77%
EBIT Next 3Y7.77%
EBIT Next 5Y6.67%
FCF growth 1Y-30.38%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y-16.82%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%
TELEFLEX INC / TFX FAQ
What is the ChartMill fundamental rating of TELEFLEX INC (TFX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TFX.
What is the valuation status for TFX stock?
ChartMill assigns a valuation rating of 8 / 10 to TELEFLEX INC (TFX). This can be considered as Undervalued.
What is the profitability of TFX stock?
TELEFLEX INC (TFX) has a profitability rating of 6 / 10.
What is the valuation of TELEFLEX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TELEFLEX INC (TFX) is 7.94 and the Price/Book (PB) ratio is 1.3.
How financially healthy is TELEFLEX INC?
The financial health rating of TELEFLEX INC (TFX) is 5 / 10.