TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TPX • US88023U1016
68.78 USD
+0.34 (+0.5%)
At close: Feb 14, 2025
68.78 USD
0 (0%)
After Hours: 2/14/2025, 8:08:37 PM
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. While TPX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TPX is quite expensive at the moment. It does show a decent growth rate.
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.
- Each year in the past 5 years TPX has been profitable.
- In the past 5 years TPX always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TPX (8.53%) is better than 64.62% of its industry peers.
- TPX has a Return On Equity of 69.00%. This is amongst the best in 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.
- Measured over the past 3 years, the Average Return On Invested Capital for TPX is significantly above the industry average of 9.52%.
| 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.
- With a decent Operating Margin value of 12.81%, TPX is doing good in the industry, outperforming 72.31% of the companies in the same industry.
- TPX's Operating Margin has improved in the last couple of years.
- The Gross Margin of TPX (44.51%) is better 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.
- Compared to 1 year ago, TPX has more shares outstanding
- TPX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.78 indicates that TPX is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 4.78, TPX is doing good in the industry, outperforming 75.38% of the companies in the same industry.
- 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.
- TPX has a Debt to FCF ratio of 4.37. This is in the better half of the industry: TPX outperforms 61.54% of its industry peers.
- A Debt/Equity ratio of 3.95 is on the high side and indicates that TPX has dependencies on debt financing.
- TPX has a Debt to Equity ratio of 3.95. This is amonst the worse of the industry: TPX underperforms 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
- TPX has a Current Ratio of 1.14. This is a normal value and indicates that TPX is financially healthy and should not expect problems in meeting its short term obligations.
- TPX has a Current ratio of 1.14. This is amonst the worse of the industry: TPX underperforms 87.69% of its industry peers.
- TPX has a Quick Ratio of 1.14. This is a bad value and indicates that TPX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, TPX is doing worse than 67.69% of the companies in the same industry.
| 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.
- 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.
- 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
- 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 Y5.53%
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
- A Price/Earnings ratio of 27.73 indicates a quite expensive valuation of TPX.
- TPX's Price/Earnings ratio is a bit more expensive when compared to the industry. TPX is more expensive than 61.54% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.41. TPX is around the same levels.
- 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.
- TPX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 |
4.2 Price Multiples
- 64.62% of the companies in the same industry are cheaper than TPX, based on the Enterprise Value to EBITDA ratio.
- 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.
- Compared to an average industry Dividend Yield of 1.22, TPX pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
- On average, the dividend of TPX grows each year by 43.15%, which is quite nice.
- 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
- 22.85% of the earnings are spent on dividend by TPX. This is a low number and sustainable payout ratio.
- TPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.85%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
TEMPUR SEALY INTERNATIONAL I / TPX FAQ
Can you provide the ChartMill fundamental rating for TEMPUR SEALY INTERNATIONAL I?
ChartMill assigns a fundamental rating of 5 / 10 to TPX.
What is the valuation status for TPX stock?
ChartMill assigns a valuation rating of 2 / 10 to TEMPUR SEALY INTERNATIONAL I (TPX). This can be considered as Overvalued.
Can you provide the profitability details for TEMPUR SEALY INTERNATIONAL I?
TEMPUR SEALY INTERNATIONAL I (TPX) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for TPX stock?
The Earnings per Share (EPS) of TEMPUR SEALY INTERNATIONAL I (TPX) is expected to grow by 5.53% in the next year.
Can you provide the dividend sustainability for TPX stock?
The dividend rating of TEMPUR SEALY INTERNATIONAL I (TPX) is 4 / 10 and the dividend payout ratio is 22.85%.