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. While TPX has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, TPX is valued expensive at the moment.
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.
- In the past 5 years TPX always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.53%, TPX is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
- 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.
- 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.
- 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.
- TPX's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 12.81%, TPX is doing good in the industry, outperforming 72.31% of the companies in the same industry.
- TPX's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 44.51%, TPX belongs to the best of the industry, outperforming 84.62% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TPX is creating value.
- The number of shares outstanding for TPX has been increased compared to 1 year ago.
- 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.
- 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.
- TPX has a better Debt to FCF ratio (4.37) 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 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 has a Current ratio of 1.14. This is amonst the worse of the industry: TPX underperforms 87.69% of its industry peers.
- A Quick Ratio of 0.65 indicates that TPX may have some problems paying 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
- 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
- The Revenue has decreased by -0.99% in the past 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
- The Earnings Per Share is expected to grow by 10.18% on average over the next years. This is quite good.
- 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.
- 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
- 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 the industry average as 61.54% of the companies are valued more cheaply.
- The average S&P500 Price/Earnings ratio is at 27.21. TPX is around the same levels.
- The Price/Forward Earnings ratio is 23.74, which indicates a rather expensive current valuation of TPX.
- Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than 70.77% of the companies in the same industry.
- TPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| 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 the industry average as 64.62% of the companies are valued more cheaply.
- 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 1.16.
- With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 1.81.
| 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
- 22.85% of the earnings are spent on dividend by TPX. This is a low number and 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%.