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%)
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 60 industry peers in the Household Durables industry. TPX has an excellent profitability rating, but 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.
- TPX had positive earnings in each of the past 5 years.
- In the past 5 years TPX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 8.53%, TPX is doing good in the industry, outperforming 64.62% of the companies in the same industry.
- 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.
- The Return On Invested Capital of TPX (13.89%) is better than 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 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
- With a decent Profit Margin value of 7.96%, TPX is doing good in the industry, outperforming 64.62% of the companies in the same industry.
- TPX's Profit Margin has improved in the last couple of years.
- 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.
- 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
- 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
- TPX has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.78 indicates that TPX is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.78, TPX is in the better half of the industry, outperforming 75.38% 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's Debt to FCF ratio of 4.37 is fine compared to the rest of the industry. TPX outperforms 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's Debt to Equity ratio of 3.95 is on the low side compared to the rest of the industry. TPX is outperformed by 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 worse Current ratio (1.14) than 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.
- With a Quick ratio value of 0.65, TPX is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
| 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
- TPX shows a decrease in Revenue. In the last year, the revenue decreased by -0.99%.
- 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
- Based on estimates for the next years, TPX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.18% on average per year.
- The Revenue is expected to grow by 3.48% on average over the next years.
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.
- Compared to the rest of the industry, the Price/Earnings ratio of TPX indicates a slightly more expensive valuation: TPX is more expensive than 61.54% of the companies listed in the same industry.
- TPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 23.74, TPX is valued on the expensive side.
- 70.77% of the companies in the same industry are cheaper than TPX, based on the Price/Forward Earnings ratio.
- TPX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.30, 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
- 64.62% of the companies in the same industry are cheaper than TPX, based on the Enterprise Value to EBITDA ratio.
- TPX's Price/Free Cash Flow ratio is in line with the industry average.
| 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.
- Compared to an average industry Dividend Yield of 1.16, TPX pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.76, TPX pays less dividend than the S&P500 average, which is at 1.86.
| 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.
- 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)02-20 2025-02-20/bmo
Earnings (Next)08-04 2025-08-04/amc
Inst Owners81.34%
Inst Owner Change0.09%
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 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%.