TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TPX - US88023U1016 - Common Stock
68.78 USD
+0.34 (+0.5%)
68.78 USD
0 (0%)
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. TPX scores excellent on profitability, 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
TPX had positive earnings in the past year.
TPX had a positive operating cash flow in the past year.
In the past 5 years TPX has always been profitable.
In the past 5 years TPX always reported a positive cash flow from operatings.
1.2 Ratios
TPX has a better Return On Assets (8.53%) than 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.
TPX has a Return On Invested Capital of 13.89%. This is in the better half of the industry: TPX outperforms 78.46% of its industry peers.
TPX had an Average Return On Invested Capital over the past 3 years of 16.57%. This is significantly above the industry average of 9.70%.
| 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
With a decent Profit Margin value of 7.96%, TPX is doing good in the industry, outperforming 64.62% of the companies in the same industry.
TPX's Profit Margin has improved in the last couple of years.
The Operating Margin of TPX (12.81%) is better than 72.31% of its industry peers.
TPX's Operating Margin has improved in the last couple of years.
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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
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's Altman-Z score of 4.78 is fine compared to the rest 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's Debt to Equity ratio of 3.95 is on the low side compared to the rest of the industry. TPX is outperformed by 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.
TPX has a worse Current ratio (1.14) than 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.
TPX has a Quick ratio of 0.65. This is in the lower half of the industry: TPX underperforms 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
TPX shows a decrease in Revenue. In the last year, the revenue decreased by -0.99%.
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
With a Price/Earnings ratio of 27.73, TPX can be considered very expensive at the moment.
Based on the Price/Earnings ratio, TPX is valued a bit more expensive than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, TPX is valued at the same level.
With a Price/Forward Earnings ratio of 23.74, TPX is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than 70.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TPX to the average of the S&P500 Index (23.13), we can say TPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPX is valued a bit more expensive than 64.62% of the companies in the same industry.
TPX's Price/Free Cash Flow is on the same level as 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 an expensive valuation of the company.
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 1.23.
With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 2.00.
| 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 Change-4.88%
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 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
Graham NumberN/A
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%
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 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%
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%.