TELEFLEX INC (TFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFX - US8793691069 - Common Stock
104.945 USD
+0.42 (+0.41%)
TFX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 184 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of TFX get a neutral evaluation. Nothing too spectacular is happening here. TFX is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TFX very considerable 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 69.57% of its industry peers.
- TFX has a Return On Equity of -8.58%. This is in the better half of the industry: TFX outperforms 69.02% of its industry peers.
- TFX has a Return On Invested Capital of 6.93%. This is amongst the best in the industry. TFX outperforms 81.52% 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 8.81%.
| 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
- TFX's Profit Margin has declined in the last couple of years.
- TFX has a Operating Margin of 17.59%. This is amongst the best in the industry. TFX outperforms 89.13% of its industry peers.
- TFX's Operating Margin has been stable in the last couple of years.
- TFX has a Gross Margin (53.67%) which is comparable to the rest of the industry.
- TFX's Gross Margin has been stable in the last couple of years.
| 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 2.20 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 (2.20) than 62.50% of its industry peers.
- TFX has a debt to FCF ratio of 10.11. This is a negative value and a sign of low solvency as TFX would need 10.11 years to pay back of 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 72.28% of its industry peers.
- TFX has a Debt/Equity ratio of 0.67. This is a neutral value indicating TFX is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.67, TFX is doing worse than 65.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.69
WACC10.01%
2.3 Liquidity
- A Current Ratio of 2.57 indicates that TFX has no problem at all paying its short term obligations.
- TFX has a Current ratio (2.57) which is comparable to the rest of the industry.
- A Quick Ratio of 1.53 indicates that TFX should not have too much problems paying its short term obligations.
- TFX's Quick ratio of 1.53 is in line compared to the rest of the industry. TFX outperforms 44.02% of its industry peers.
| 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.
- Measured over the past 5 years, TFX shows a small growth in Earnings Per Share. The EPS has been growing by 4.67% on average per year.
- Looking at the last year, TFX shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
- Measured over the past years, TFX shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
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
- The Earnings Per Share is expected to grow by 6.83% 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 6.72% on average per year.
EPS Next Y1.3%
EPS Next 2Y4.03%
EPS Next 3Y4.48%
EPS Next 5Y6.83%
Revenue Next Year7.4%
Revenue Next 2Y8.87%
Revenue Next 3Y7.31%
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.
- 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
- The Price/Earnings ratio is 7.39, which indicates a rather cheap valuation of TFX.
- Compared to the rest of the industry, the Price/Earnings ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 97.83% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, TFX is valued rather cheaply.
- A Price/Forward Earnings ratio of 6.92 indicates a rather cheap valuation of TFX.
- 98.37% of the companies in the same industry are more expensive than TFX, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TFX is valued cheaper than 94.57% of the companies in the same industry.
- TFX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TFX is cheaper than 92.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.54 | ||
| EV/EBITDA | 8.22 |
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.
- The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)5.69
PEG (5Y)1.58
EPS Next 2Y4.03%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- TFX has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.20, TFX pays a better dividend. On top of this TFX pays more dividend than 94.57% of the companies listed in the same industry.
- TFX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
- TFX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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.
- The dividend of TFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-18.59%
EPS Next 2Y4.03%
EPS Next 3Y4.48%
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 7.39 and the Price/Book (PB) ratio is 1.21.
How financially healthy is TELEFLEX INC?
The financial health rating of TELEFLEX INC (TFX) is 5 / 10.