TEMPUR SEALY INTERNATIONAL I (TPX)
US88023U1016 - Common Stock
We assign a fundamental rating of 5 out of 10 to TPX. TPX was compared to 64 industry peers in the Household Durables industry. TPX scores excellent on profitability, but there are some minor concerns on its financial health. TPX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
TPX had positive earnings in the past year.
TPX had a positive operating cash flow in the past year.
TPX had positive earnings in each of the past 5 years.
TPX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TPX (8.53%) is better than 61.29% of its industry peers.
TPX's Return On Equity of 69.00% is amongst the best of the industry. TPX outperforms 98.39% of its industry peers.
TPX's Return On Invested Capital of 13.89% is fine compared to the rest of the industry. TPX outperforms 79.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPX is significantly above the industry average of 10.82%.
| 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
Looking at the Profit Margin, with a value of 7.96%, TPX is in the better half of the industry, outperforming 62.90% of the companies in the same industry.
TPX's Profit Margin has improved in the last couple of years.
TPX has a better Operating Margin (12.81%) than 72.58% 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 83.87% of the companies in the same industry.
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.
Compared to 1 year ago, TPX has more shares outstanding
The number of shares outstanding for TPX has been reduced compared to 5 years ago.
Compared to 1 year ago, TPX has an improved debt to assets ratio.
2.2 Solvency
TPX has an Altman-Z score of 4.06. This indicates that TPX is financially healthy and has little risk of bankruptcy at the moment.
TPX has a better Altman-Z score (4.06) than 61.29% 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 Debt to FCF ratio (4.37) which is comparable to the rest of the industry.
TPX has a Debt/Equity ratio of 3.95. This is a high value indicating a heavy dependency on external financing.
TPX has a worse Debt to Equity ratio (3.95) than 96.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.54
WACC9.04%
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 worse Current ratio (1.14) than 90.32% 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 69.35% 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.
The Revenue has decreased by -0.99% in the past 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
TPX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
TPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y5.74%
EPS Next 2Y9.44%
EPS Next 3Y10.05%
EPS Next 5Y12.63%
Revenue Next Year0.38%
Revenue Next 2Y1.67%
Revenue Next 3Y2.72%
Revenue Next 5Y4.27%
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
TPX is valuated rather expensively with a Price/Earnings ratio of 21.94.
TPX's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, TPX is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.85, which indicates a rather expensive current valuation of TPX.
Based on the Price/Forward Earnings ratio, TPX is valued a bit more expensive than the industry average as 64.52% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.82. TPX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, TPX is valued a bit cheaper than 67.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.17 | ||
| EV/EBITDA | 14.8 |
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)3.82
PEG (5Y)0.8
EPS Next 2Y9.44%
EPS Next 3Y10.05%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, TPX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.47, TPX pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.95, TPX pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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.
The dividend of TPX decreased in the last 3 years.
Dividend Growth(5Y)43.15%
Div Incr Years2
Div Non Decr Years2
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 2Y9.44%
EPS Next 3Y10.05%
TEMPUR SEALY INTERNATIONAL I
NYSE:TPX (11/21/2024, 8:04:00 PM)
After market: 54.4 0 (0%)54.4
+0.89 (+1.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.94 | ||
| Fwd PE | 18.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.82
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)2.48%
EPS 3Y8.06%
EPS 5Y
EPS Q2Q%
EPS Next Y5.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y