TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
NYSE:TPX - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to TPX. TPX was compared to 67 industry peers in the Household Durables industry. TPX has an excellent profitability rating, but there are some minor concerns on its financial health. TPX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TPX was profitable.
TPX had a positive operating cash flow in the past year.
In the past 5 years TPX has always been profitable.
TPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.53%, TPX is doing good in the industry, outperforming 63.08% of the companies in the same industry.
TPX's Return On Equity of 69.00% is amongst the best of the industry. TPX outperforms 98.46% of its industry peers.
With a decent Return On Invested Capital value of 13.89%, TPX is doing good in the industry, outperforming 78.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TPX is above the industry average of 11.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROIC | 13.89% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
1.3 Margins
TPX has a Profit Margin of 7.96%. This is in the better half of the industry: TPX outperforms 64.62% of its industry peers.
In the last couple of years the Profit Margin of TPX has grown nicely.
TPX has a Operating Margin of 12.81%. This is in the better half of the industry: TPX outperforms 72.31% of its industry peers.
In the last couple of years the Operating Margin of TPX has grown nicely.
TPX has a better Gross Margin (44.51%) than 84.62% of its industry peers.
TPX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% |
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPX is creating value.
The number of shares outstanding for TPX has been increased compared to 1 year ago.
Compared to 5 years ago, TPX has less shares outstanding
TPX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.26 indicates that TPX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.26, TPX is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
TPX has a debt to FCF ratio of 4.37. This is a neutral value as TPX would need 4.37 years to pay back of all of its debts.
The Debt to FCF ratio of TPX (4.37) is comparable to the rest of the industry.
A Debt/Equity ratio of 3.95 is on the high side and indicates that TPX has dependencies on debt financing.
TPX has a worse Debt to Equity ratio (3.95) than 95.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.26 |
ROIC/WACC1.6
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.14 indicates that TPX should not have too much problems paying its short term obligations.
TPX has a worse Current ratio (1.14) than 89.23% of its industry peers.
A Quick Ratio of 0.65 indicates that TPX may have some problems paying its short term obligations.
TPX's Quick ratio of 0.65 is on the low side compared to the rest of the industry. TPX is outperformed by 70.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
TPX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.48%.
Measured over the past years, TPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.51% on average per year.
The Revenue has decreased by -0.99% in the past year.
The Revenue has been growing by 12.75% on average over the past years. This is quite good.
EPS 1Y (TTM)2.48%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
3.2 Future
Based on estimates for the next years, TPX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.18% on average per year.
TPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y5.32%
EPS Next 2Y9.25%
EPS Next 3Y10.2%
EPS Next 5Y10.18%
Revenue Next Year-0.58%
Revenue Next 2Y1.62%
Revenue Next 3Y2.77%
Revenue Next 5Y3.48%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 25.96 indicates a quite expensive valuation of TPX.
Compared to the rest of the industry, the Price/Earnings ratio of TPX is on the same level as its industry peers.
TPX's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.51.
TPX is valuated rather expensively with a Price/Forward Earnings ratio of 22.38.
Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
TPX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 93.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 22.38 |
4.2 Price Multiples
TPX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TPX is more expensive than 63.08% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.5 | ||
| EV/EBITDA | 16.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TPX does not grow enough to justify the current Price/Earnings ratio.
TPX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.88
PEG (5Y)0.94
EPS Next 2Y9.25%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, TPX is not a good candidate for dividend investing.
TPX's Dividend Yield is a higher than the industry average which is at 2.90.
Compared to an average S&P500 Dividend Yield of 2.27, TPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of TPX is nicely growing with an annual growth rate of 43.15%!
TPX has been paying a dividend for over 5 years, so it has already some track record.
TPX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)43.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TPX pays out 22.85% of its income as dividend. This is a sustainable payout ratio.
TPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.85%
EPS Next 2Y9.25%
EPS Next 3Y10.2%
TEMPUR SEALY INTERNATIONAL I
NYSE:TPX (1/30/2025, 7:49:46 PM)
After market: 64.37 0 (0%)64.37
+2.34 (+3.77%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change-0.02%
Ins Owners3.05%
Ins Owner Change2.57%
Market Cap11.18B
Analysts78.57
Price Target62.99 (-2.14%)
Short Float %3.68%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.45
Dividend Growth(5Y)43.15%
DP22.85%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.83%
Min EPS beat(2)-2.2%
Max EPS beat(2)0.54%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.54%
Max EPS beat(4)2.49%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)7
Avg EPS beat(12)0.28%
EPS beat(16)11
Avg EPS beat(16)5.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-4.45%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)-0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.99%
Revenue beat(12)2
Avg Revenue beat(12)-2.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)0%
PT rev (3m)5.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 22.38 | ||
| P/S | 2.28 | ||
| P/FCF | 21.5 | ||
| P/OCF | 17.78 | ||
| P/B | 19.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)2.48
EY3.85%
EPS(NY)2.88
Fwd EY4.47%
FCF(TTM)2.99
FCFY4.65%
OCF(TTM)3.62
OCFY5.62%
SpS28.18
BVpS3.25
TBVpS-7.18
PEG (NY)4.88
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROCE | 17.63% | ||
| ROIC | 13.89% | ||
| ROICexc | 14.31% | ||
| ROICexgc | 30.12% | ||
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% | ||
| FCFM | 10.63% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
ROICexc(3y)17.49%
ROICexc(5y)16.63%
ROICexgc(3y)41.15%
ROICexgc(5y)40.69%
ROCE(3y)21.04%
ROCE(5y)20.19%
ROICexcg growth 3Y-17.23%
ROICexcg growth 5Y-4.88%
ROICexc growth 3Y-9.87%
ROICexc growth 5Y4.24%
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 68.85% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 133.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.26 |
F-Score6
WACC8.7%
ROIC/WACC1.6
Cap/Depr(3y)162.37%
Cap/Depr(5y)139.8%
Cap/Sales(3y)4.16%
Cap/Sales(5y)3.67%
Profit Quality(3y)72.09%
Profit Quality(5y)98.13%
High Growth Momentum
Growth
EPS 1Y (TTM)2.48%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%6.49%
EPS Next Y5.32%
EPS Next 2Y9.25%
EPS Next 3Y10.2%
EPS Next 5Y10.18%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
Revenue Next Year-0.58%
Revenue Next 2Y1.62%
Revenue Next 3Y2.77%
Revenue Next 5Y3.48%
EBIT growth 1Y0.82%
EBIT growth 3Y4.84%
EBIT growth 5Y17.05%
EBIT Next Year29.93%
EBIT Next 3Y14.82%
EBIT Next 5Y11.43%
FCF growth 1Y244.37%
FCF growth 3Y-10.88%
FCF growth 5Y28.58%
OCF growth 1Y53.97%
OCF growth 3Y-4.51%
OCF growth 5Y25.51%