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%)
We assign a fundamental rating of 5 out of 10 to TPX. TPX was compared to 60 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 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.
- TPX had positive earnings in each of the past 5 years.
- 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.
- The Return On Equity of TPX (69.00%) is better 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.
- The Average Return On Invested Capital over the past 3 years for TPX is significantly above the industry average of 9.71%.
| 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.
- 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.
- 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
- 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
- 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.
- A Debt/Equity ratio of 3.95 is on the high side and indicates that TPX has dependencies on debt 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.
- 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.
- The Quick ratio of TPX (0.65) is worse than 67.69% 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%.
- 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
- 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.
- Based on estimates for the next years, TPX will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 27.73, which means the current valuation is very expensive for 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.
- TPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- TPX is valuated rather expensively with a Price/Forward Earnings ratio of 23.74.
- Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than 70.77% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. TPX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPX indicates a slightly more expensive valuation: TPX is more expensive than 64.62% of the companies listed 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 an expensive valuation of the company.
- The excellent profitability rating of TPX 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
- 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 1.16.
- With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- 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%.