TELEFLEX INC (TFX) Stock Fundamental Analysis
NYSE:TFX - New York Stock Exchange, Inc. - US8793691069 - Common Stock - Currency: USD
Taking everything into account, TFX scores 6 out of 10 in our fundamental rating. TFX was compared to 189 industry peers in the Health Care Equipment & Supplies industry. TFX has an excellent profitability rating, but there are some minor concerns on its financial health. TFX has a bad growth rate and is valued cheaply. 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.
Of the past 5 years TFX 4 years were profitable.
TFX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TFX's Return On Assets of 3.17% is fine compared to the rest of the industry. TFX outperforms 76.47% of its industry peers.
Looking at the Return On Equity, with a value of 5.30%, TFX is in the better half of the industry, outperforming 78.07% of the companies in the same industry.
The Return On Invested Capital of TFX (6.44%) is better than 83.42% 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 7.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 5.3% | ||
| ROIC | 6.44% |
ROA(3y)5.68%
ROA(5y)5.81%
ROE(3y)9.99%
ROE(5y)11.1%
ROIC(3y)6.89%
ROIC(5y)6.63%
1.3 Margins
The Profit Margin of TFX (7.85%) is better than 79.68% of its industry peers.
TFX's Profit Margin has improved in the last couple of years.
TFX has a Operating Margin of 17.84%. This is amongst the best in the industry. TFX outperforms 89.84% of its industry peers.
TFX's Operating Margin has improved in the last couple of years.
TFX has a Gross Margin (55.99%) which is comparable to the rest of the 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 | 17.84% | ||
| PM (TTM) | 7.85% | ||
| GM | 55.99% |
OM growth 3Y-1.24%
OM growth 5Y3%
PM growth 3Y-3.22%
PM growth 5Y7.87%
GM growth 3Y1.97%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TFX is destroying value.
TFX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 2.87 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.87, TFX is doing good in the industry, outperforming 65.78% of the companies in the same industry.
The Debt to FCF ratio of TFX is 3.91, which is a good value as it means it would take TFX, 3.91 years of fcf income to pay off all of its debts.
TFX has a better Debt to FCF ratio (3.91) than 84.49% of its industry peers.
TFX has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
TFX has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.74
WACC8.66%
2.3 Liquidity
TFX has a Current Ratio of 2.42. This indicates that TFX is financially healthy and has no problem in meeting its short term obligations.
TFX has a Current ratio of 2.42. This is comparable to the rest of the industry: TFX outperforms 42.78% of its industry peers.
TFX has a Quick Ratio of 1.39. 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 of 1.39. This is in the lower half of the industry: TFX underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
TFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.62%.
The Earnings Per Share has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)3.62%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%15.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.78%
3.2 Future
The Earnings Per Share is expected to grow by 7.17% 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 5.11% on average per year.
EPS Next Y9.83%
EPS Next 2Y9.79%
EPS Next 3Y9.53%
EPS Next 5Y7.17%
Revenue Next Year4.63%
Revenue Next 2Y4.65%
Revenue Next 3Y5.47%
Revenue Next 5Y5.11%
3.3 Evolution
The EPS 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
TFX is valuated reasonably with a Price/Earnings ratio of 9.93.
Compared to the rest of the industry, the Price/Earnings ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 96.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (29.01), we can say TFX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.04, the valuation of TFX can be described as reasonable.
96.79% 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 22.40, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
92.51% of the companies in the same industry are more expensive than TFX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 92.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 9.88 |
4.3 Compensation for Growth
TFX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)1.01
PEG (5Y)2.13
EPS Next 2Y9.79%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
TFX has a yearly dividend return of 0.77%, which is pretty low.
In the last 3 months the price of TFX has falen by -27.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TFX's Dividend Yield is rather good when compared to the industry average which is at 1.61. TFX pays more dividend than 91.98% of the companies in the same industry.
With a Dividend Yield of 0.77, TFX pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of TFX decreases each year by -0.06%.
TFX has been paying a dividend for at least 10 years, so it has 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)-0.06%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
26.86% of the earnings are spent on dividend by TFX. This is a low number and sustainable payout ratio.
DP26.86%
EPS Next 2Y9.79%
EPS Next 3Y9.53%
139.11
-38.52 (-21.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.87%
Inst Owner Change1.85%
Ins Owners0.28%
Ins Owner Change2.88%
Market Cap6.46B
Analysts71.11
Price Target245 (76.12%)
Short Float %2.48%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend1.36
Dividend Growth(5Y)-0.06%
DP26.86%
Div Incr Years0
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.73%
Min EPS beat(2)1.6%
Max EPS beat(2)1.85%
EPS beat(4)4
Avg EPS beat(4)2.36%
Min EPS beat(4)1.6%
Max EPS beat(4)3.47%
EPS beat(8)8
Avg EPS beat(8)3.66%
EPS beat(12)12
Avg EPS beat(12)3.19%
EPS beat(16)16
Avg EPS beat(16)5.72%
Revenue beat(2)0
Avg Revenue beat(2)-1.4%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.65%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.5%
Revenue beat(8)4
Avg Revenue beat(8)0.02%
Revenue beat(12)6
Avg Revenue beat(12)-0.32%
Revenue beat(16)9
Avg Revenue beat(16)0.07%
PT rev (1m)0.04%
PT rev (3m)-2.63%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-0.05%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.93 | ||
| Fwd PE | 9.04 | ||
| P/S | 2.14 | ||
| P/FCF | 14.35 | ||
| P/OCF | 11.29 | ||
| P/B | 1.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.88 |
EPS(TTM)14.01
EY10.07%
EPS(NY)15.39
Fwd EY11.06%
FCF(TTM)9.69
FCFY6.97%
OCF(TTM)12.32
OCFY8.86%
SpS65.16
BVpS96.51
TBVpS-16.41
PEG (NY)1.01
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.17% | ||
| ROE | 5.3% | ||
| ROCE | 7.86% | ||
| ROIC | 6.44% | ||
| ROICexc | 6.67% | ||
| ROICexgc | 32.02% | ||
| OM | 17.84% | ||
| PM (TTM) | 7.85% | ||
| GM | 55.99% | ||
| FCFM | 14.87% |
ROA(3y)5.68%
ROA(5y)5.81%
ROE(3y)9.99%
ROE(5y)11.1%
ROIC(3y)6.89%
ROIC(5y)6.63%
ROICexc(3y)7.26%
ROICexc(5y)7%
ROICexgc(3y)39.5%
ROICexgc(5y)37.87%
ROCE(3y)8.41%
ROCE(5y)8.1%
ROICexcg growth 3Y-0.25%
ROICexcg growth 5Y-3.45%
ROICexc growth 3Y1.66%
ROICexc growth 5Y2.32%
OM growth 3Y-1.24%
OM growth 5Y3%
PM growth 3Y-3.22%
PM growth 5Y7.87%
GM growth 3Y1.97%
GM growth 5Y-0.42%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | 45.72% | ||
| Cap/Sales | 4.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.91% | ||
| Profit Quality | 189.54% | ||
| Current Ratio | 2.42 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.87 |
F-Score7
WACC8.66%
ROIC/WACC0.74
Cap/Depr(3y)34.09%
Cap/Depr(5y)38.03%
Cap/Sales(3y)2.82%
Cap/Sales(5y)3.2%
Profit Quality(3y)103.17%
Profit Quality(5y)97.12%
High Growth Momentum
Growth
EPS 1Y (TTM)3.62%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%15.09%
EPS Next Y9.83%
EPS Next 2Y9.79%
EPS Next 3Y9.53%
EPS Next 5Y7.17%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.78%
Revenue Next Year4.63%
Revenue Next 2Y4.65%
Revenue Next 3Y5.47%
Revenue Next 5Y5.11%
EBIT growth 1Y-5.91%
EBIT growth 3Y4.14%
EBIT growth 5Y7.09%
EBIT Next Year14.64%
EBIT Next 3Y10.5%
EBIT Next 5Y7.51%
FCF growth 1Y20.58%
FCF growth 3Y6.64%
FCF growth 5Y3.29%
OCF growth 1Y28.45%
OCF growth 3Y5.38%
OCF growth 5Y3.14%