TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
NYSE:TPX - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
Taking everything into account, TPX scores 5 out of 10 in our fundamental rating. TPX was compared to 63 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 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.
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
The Return On Assets of TPX (8.53%) is better 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's Return On Invested Capital of 13.89% is fine compared to the rest 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 10.51%.
| 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.
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.
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.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPX is creating value.
TPX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, TPX has less shares outstanding
The debt/assets ratio for TPX has been reduced compared to a year ago.
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.
TPX has a debt to FCF ratio of 4.37. This is a neutral value as TPX would need 4.37 years to pay back of 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.
With a Debt to Equity ratio value of 3.95, TPX is not doing good in the industry: 95.38% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.78 |
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'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.
Looking at the Quick ratio, with a value of 0.65, TPX is doing worse than 67.69% of the companies in the same industry.
| 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.
Measured over the past years, TPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.51% on average per year.
Looking at the last year, TPX shows a decrease in Revenue. The Revenue has decreased by -0.99% in the last year.
TPX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.75% yearly.
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
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.
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.
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.
The average S&P500 Price/Earnings ratio is at 27.52. TPX is around the same levels.
Based on the Price/Forward Earnings ratio of 23.74, the valuation of TPX can be described as rather expensive.
70.77% of the companies in the same industry are cheaper than TPX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TPX to the average of the S&P500 Index (35.58), we can say TPX is valued slightly cheaper.
| 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.
The rest of the industry has a similar Price/Free Cash Flow ratio as TPX.
| 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 3.25.
With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector 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
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 Change0%
Ins Owners2.78%
Ins Owner Change1.44%
Market Cap14.30B
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
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 | 4.78 |
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%