TEMPUR SEALY INTERNATIONAL I (TPX)
US88023U1016 - Common Stock
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 66 industry peers in the Household Durables industry. TPX scores excellent on profitability, 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
TPX had positive earnings in the past year.
In the past year TPX had a positive cash flow from operations.
Each year in the past 5 years TPX has been profitable.
Each year in the past 5 years TPX had a positive operating cash flow.
1.2 Ratios
TPX has a Return On Assets of 8.53%. This is in the better half of the industry: TPX outperforms 62.50% of its industry peers.
TPX has a better Return On Equity (69.00%) than 98.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.89%, TPX is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TPX is above the industry average of 12.01%.
| 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 has a better Profit Margin (7.96%) than 64.06% of its industry peers.
TPX's Profit Margin has improved in the last couple of years.
TPX's Operating Margin of 12.81% is fine compared to the rest of the industry. TPX outperforms 71.88% of its industry peers.
In the last couple of years the Operating Margin of TPX has grown nicely.
Looking at the Gross Margin, with a value of 44.51%, TPX belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
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
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.
TPX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TPX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.10 indicates that TPX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.10, TPX is doing good in the industry, outperforming 62.50% 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 (4.37) which is comparable to the rest of the industry.
A Debt/Equity ratio of 3.95 is on the high side and indicates that TPX has dependencies on debt financing.
With a Debt to Equity ratio value of 3.95, TPX is not doing good in the industry: 95.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.1 |
ROIC/WACC1.63
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.14 indicates that TPX should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, TPX is not doing good in the industry: 90.63% of the companies in the same industry are doing better.
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.
The Quick ratio of TPX (0.65) is worse than 70.31% 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
Looking at the last year, TPX shows a decrease in Revenue. The Revenue has decreased by -0.99% in the last 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
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 Y5.32%
EPS Next 2Y9.25%
EPS Next 3Y10.2%
EPS Next 5Y10.18%
Revenue Next Year-0.6%
Revenue Next 2Y1.63%
Revenue Next 3Y2.79%
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
With a Price/Earnings ratio of 22.51, TPX is valued on the expensive side.
TPX's Price/Earnings ratio is in line with the industry average.
TPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.41, the valuation of TPX can be described as rather expensive.
Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than 62.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, TPX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.41 |
4.2 Price Multiples
TPX's Enterprise Value to EBITDA is on the same level as the industry average.
TPX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. TPX is cheaper than 60.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 15.16 |
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)4.23
PEG (5Y)0.82
EPS Next 2Y9.25%
EPS Next 3Y10.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, TPX is not a good candidate for dividend investing.
TPX's Dividend Yield is a higher than the industry average which is at 2.95.
With a Dividend Yield of 0.94, TPX pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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 2Y9.25%
EPS Next 3Y10.2%
TEMPUR SEALY INTERNATIONAL I
NYSE:TPX (12/26/2024, 8:04:00 PM)
After market: 55.83 0 (0%)55.83
-0.18 (-0.32%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners104.47%
Inst Owner Change-2.39%
Ins Owners3.05%
Ins Owner Change-1.62%
Market Cap9.69B
Analysts78.57
Price Target62.99 (12.82%)
Short Float %3.88%
Short Ratio4.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Dividend Growth(5Y)43.15%
DP22.85%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)5.78%
PT rev (3m)5.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.77%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.18%
Revenue NY rev (1m)-0.98%
Revenue NY rev (3m)-1.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 19.41 | ||
| P/S | 1.98 | ||
| P/FCF | 18.64 | ||
| P/OCF | 15.43 | ||
| P/B | 17.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.16 |
EPS(TTM)2.48
EY4.44%
EPS(NY)2.88
Fwd EY5.15%
FCF(TTM)2.99
FCFY5.36%
OCF(TTM)3.62
OCFY6.48%
SpS28.18
BVpS3.25
TBVpS-7.18
PEG (NY)4.23
PEG (5Y)0.82
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%
ROICexcg growth 3Y-17.23%
ROICexcg 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 | 4.1 |
F-Score6
WACC8.5%
ROIC/WACC1.63
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 Y5.32%
EPS Next 2Y9.25%
EPS Next 3Y10.2%
EPS Next 5Y10.18%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
Revenue Next Year-0.6%
Revenue Next 2Y1.63%
Revenue Next 3Y2.79%
Revenue Next 5Y3.48%
EBIT growth 1Y0.82%
EBIT growth 3Y4.84%
EBIT growth 5Y17.05%
EBIT Next Year29.94%
EBIT Next 3Y14.82%
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%