TEMPUR SEALY INTERNATIONAL I (TPX) Fundamental Analysis & Valuation

NYSE:TPX • US88023U1016

Current stock price

68.78 USD
+0.34 (+0.5%)
At close:
68.78 USD
0 (0%)
After Hours:

This TPX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TPX Profitability Analysis

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.
  • In the past 5 years TPX always reported a positive cash flow from operatings.
TPX Yearly Net Income VS EBIT VS OCF VS FCFTPX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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.
  • TPX has a better Return On Equity (69.00%) than 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.
  • TPX had an Average Return On Invested Capital over the past 3 years of 16.57%. This is significantly above the industry average of 8.88%.
Industry RankSector 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%
TPX Yearly ROA, ROE, ROICTPX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 -500 -1K -1.5K -2K

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 has a better Operating Margin (12.81%) than 72.31% of its industry peers.
  • In the last couple of years the Operating Margin of TPX has grown nicely.
  • TPX has a Gross Margin of 44.51%. This is amongst the best in the industry. TPX outperforms 84.62% of its industry peers.
  • TPX's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
TPX Yearly Profit, Operating, Gross MarginsTPX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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4

2. TPX Health Analysis

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.
  • The number of shares outstanding for TPX has been increased compared to 1 year ago.
  • The debt/assets ratio for TPX has been reduced compared to a year ago.
TPX Yearly Shares OutstandingTPX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
TPX Yearly Total Debt VS Total AssetsTPX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

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.
  • The Debt to FCF ratio of TPX (4.37) is better than 61.54% of its industry peers.
  • TPX has a Debt/Equity ratio of 3.95. This is a high value indicating a heavy dependency on external 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 RankSector Rank
Debt/Equity 3.95
Debt/FCF 4.37
Altman-Z 4.78
ROIC/WACC1.55
WACC8.99%
TPX Yearly LT Debt VS Equity VS FCFTPX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B 2B 2.5B

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 worse Current ratio (1.14) than 87.69% 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 67.69% of its industry peers.
Industry RankSector Rank
Current Ratio 1.14
Quick Ratio 0.65
TPX Yearly Current Assets VS Current LiabilitesTPX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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5

3. TPX Growth Analysis

3.1 Past

  • TPX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.48%.
  • The Earnings Per Share has been growing by 27.51% on average over the past years. This is a very strong growth
  • TPX shows a decrease in Revenue. In the last year, the revenue decreased by -0.99%.
  • 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.
  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
TPX Yearly Revenue VS EstimatesTPX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1B 2B 3B 4B 5B
TPX Yearly EPS VS EstimatesTPX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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2

4. TPX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 27.73, which means the current valuation is very expensive for TPX.
  • Based on the Price/Earnings ratio, TPX is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
  • When comparing the Price/Earnings ratio of TPX to the average of the S&P500 Index (26.54), we can say TPX is valued inline with the index average.
  • The Price/Forward Earnings ratio is 23.74, which indicates a rather expensive current valuation of TPX.
  • 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.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.68, TPX is valued at the same level.
Industry RankSector Rank
PE 27.73
Fwd PE 23.74
TPX Price Earnings VS Forward Price EarningsTPX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF 27.49
EV/EBITDA 20.99
TPX Per share dataTPX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15 20

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. TPX Dividend Analysis

5.1 Amount

  • TPX has a yearly dividend return of 0.76%, which is pretty low.
  • TPX's Dividend Yield is a higher than the industry average which is at 1.29.
  • Compared to an average S&P500 Dividend Yield of 1.82, TPX's dividend is way lower than the S&P500 average.
Industry RankSector 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
TPX Yearly Dividends per shareTPX Yearly Dividends per shareYearly Dividends per share 2021 2022 2023 2024 0.1 0.2 0.3 0.4 0.5

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%
TPX Yearly Income VS Free CF VS DividendTPX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M
TPX Dividend Payout.TPX Dividend Payout, showing the Payout Ratio.TPX Dividend Payout.PayoutRetained Earnings

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TPX Fundamentals: All Metrics, Ratios and Statistics

TEMPUR SEALY INTERNATIONAL I

NYSE:TPX (2/14/2025, 8:08:37 PM)

After market: 68.78 0 (0%)

68.78

+0.34 (+0.5%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Industry Strength39.13
Industry Growth39.75
Earnings (Last)02-20
Earnings (Next)08-04
Inst Owners81.34%
Inst Owner Change-4.41%
Ins Owners2.78%
Ins Owner Change0%
Market Cap14.30B
Revenue(TTM)4.89B
Net Income(TTM)389.50M
Analysts78.57
Price Target75.99 (10.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham Number0 (-100%)
Profitability
Industry RankSector 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%
ROICexgc growth 3Y-17.23%
ROICexgc 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 RankSector 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%

TEMPUR SEALY INTERNATIONAL I / TPX Fundamental Analysis 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.


How profitable is TEMPUR SEALY INTERNATIONAL I (TPX) stock?

TEMPUR SEALY INTERNATIONAL I (TPX) has a profitability rating of 8 / 10.


How financially healthy is TEMPUR SEALY INTERNATIONAL I?

The financial health rating of TEMPUR SEALY INTERNATIONAL I (TPX) is 4 / 10.


How sustainable is the dividend of TEMPUR SEALY INTERNATIONAL I (TPX) stock?

The dividend rating of TEMPUR SEALY INTERNATIONAL I (TPX) is 4 / 10 and the dividend payout ratio is 22.85%.