TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
USA - NYSE:TPX - US88023U1016 - Common Stock
68.78 USD
+0.34 (+0.5%)
68.78 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to TPX. TPX was compared to 63 industry peers in the Household Durables industry. While TPX has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TPX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TPX was profitable.
In the past year TPX had a positive cash flow from operations.
In the past 5 years TPX has always been profitable.
Each year in the past 5 years TPX had a positive operating cash flow.
1.2 Ratios
TPX has a Return On Assets of 8.53%. This is in the better half of the industry: TPX outperforms 64.62% of its industry peers.
Looking at the Return On Equity, with a value of 69.00%, TPX belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for TPX is significantly above the industry average of 10.52%.
| 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's Profit Margin of 7.96% is fine compared to the rest 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's Operating Margin of 12.81% is fine compared to the rest 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.
In the last couple of years the Gross Margin of TPX has remained more or less at the same level.
| 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
TPX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, TPX has more shares outstanding
The number of shares outstanding for TPX has been reduced compared to 5 years ago.
The debt/assets ratio for TPX has been reduced compared to a year ago.
2.2 Solvency
TPX has an Altman-Z score of 4.78. This indicates that TPX is financially healthy and has little risk of bankruptcy at the moment.
TPX has a Altman-Z score of 4.78. This is in the better half of the industry: TPX outperforms 75.38% of its industry peers.
The Debt to FCF ratio of TPX is 4.37, which is a neutral value as it means it would take TPX, 4.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.37, TPX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
TPX has a Debt/Equity ratio of 3.95. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TPX (3.95) is worse than 95.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.55
WACC8.99%
2.3 Liquidity
A Current Ratio of 1.14 indicates that TPX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, TPX is not doing good in the industry: 87.69% of the companies in the same industry are doing better.
A Quick Ratio of 0.65 indicates that TPX may have some problems paying its short term obligations.
TPX has a worse Quick ratio (0.65) than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.48% over the past year.
The Earnings Per Share has been growing by 27.51% on average over the past years. This is a very strong growth
Looking at the last year, TPX shows a decrease in Revenue. The Revenue has decreased by -0.99% in the last year.
Measured over the past years, TPX shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
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
TPX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.18% yearly.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
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
Based on the Price/Earnings ratio of 27.73, the valuation of TPX can be described as expensive.
61.54% of the companies in the same industry are cheaper than TPX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.41, TPX is valued at the same level.
TPX is valuated rather expensively with a Price/Forward Earnings ratio of 23.74.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPX indicates a slightly more expensive valuation: TPX is more expensive than 70.77% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. TPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 |
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 64.62% of the companies in the same industry.
TPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.49 | ||
| EV/EBITDA | 20.99 |
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)5.02
PEG (5Y)1.01
EPS Next 2Y9.65%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, TPX is not a good candidate for dividend investing.
TPX's Dividend Yield is a higher than the industry average which is at 3.03.
With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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.
The dividend of TPX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.85%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
68.78
+0.34 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.34%
Inst Owner Change4.98%
Ins Owners2.78%
Ins Owner Change0%
Market Cap14.30B
Analysts78.57
Price Target75.99 (10.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)20.65%
PT rev (3m)20.65%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 | ||
| P/S | 2.92 | ||
| P/FCF | 27.49 | ||
| P/OCF | 22.75 | ||
| P/B | 25.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.99 |
EPS(TTM)2.48
EY3.61%
EPS(NY)2.9
Fwd EY4.21%
FCF(TTM)2.5
FCFY3.64%
OCF(TTM)3.02
OCFY4.4%
SpS23.54
BVpS2.72
TBVpS-6
PEG (NY)5.02
PEG (5Y)1.01
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 | 4.78 |
F-Score6
WACC8.99%
ROIC/WACC1.55
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 Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
Revenue Next 5Y3.48%
EBIT growth 1Y0.82%
EBIT growth 3Y4.84%
EBIT growth 5Y17.05%
EBIT Next Year30.06%
EBIT Next 3Y15%
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%