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%)
Overall TPX gets a fundamental rating of 5 out of 10. We evaluated TPX against 61 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year TPX was profitable.
TPX had a positive operating cash flow in the past year.
TPX had positive earnings in each of the past 5 years.
Each year in the past 5 years TPX had a positive operating cash flow.
1.2 Ratios
TPX has a better Return On Assets (8.53%) 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 10.34%.
| 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.
Looking at the Operating Margin, with a value of 12.81%, TPX is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
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.
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.
The number of shares outstanding for TPX has been increased compared to 1 year ago.
Compared to 5 years ago, TPX has less shares outstanding
Compared to 1 year ago, TPX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.78 indicates that TPX is not in any danger for bankruptcy at the moment.
The Altman-Z score of TPX (4.78) is better than 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.
TPX has a better Debt to FCF ratio (4.37) than 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's Current ratio of 1.14 is on the low side compared to the rest of the industry. TPX is outperformed by 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 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
TPX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.48%.
TPX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.51% yearly.
Looking at the last year, TPX shows a decrease in Revenue. The Revenue has decreased by -0.99% in the last year.
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
The Earnings Per Share is expected to grow by 10.18% on average over the next years. This is quite good.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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.
When comparing the Price/Earnings ratio of TPX to the average of the S&P500 Index (26.76), 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.
When comparing the Price/Forward Earnings ratio of TPX to the average of the S&P500 Index (22.63), 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
64.62% of the companies in the same industry are cheaper than TPX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TPX is on the same level as its industry peers.
| 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.
Compared to an average industry Dividend Yield of 3.05, TPX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, TPX's dividend is way lower than the S&P500 average.
| 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
22.85% of the earnings are spent on dividend by TPX. This is a low number and 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-0.23%
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 of TEMPUR SEALY INTERNATIONAL I (TPX) stock?
ChartMill assigns a valuation rating of 2 / 10 to TEMPUR SEALY INTERNATIONAL I (TPX). This can be considered as Overvalued.
What is the profitability of TPX stock?
TEMPUR SEALY INTERNATIONAL I (TPX) has a profitability rating of 8 / 10.
What is the valuation of TEMPUR SEALY INTERNATIONAL I based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TEMPUR SEALY INTERNATIONAL I (TPX) is 27.73 and the Price/Book (PB) ratio is 25.32.
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%.