TELEFLEX INC (TFX) Stock Fundamental Analysis
NYSE:TFX - New York Stock Exchange, Inc. - US8793691069 - Common Stock - Currency: USD
Taking everything into account, TFX scores 6 out of 10 in our fundamental rating. TFX was compared to 187 industry peers in the Health Care Equipment & Supplies industry. While TFX has a great profitability rating, there are some minor concerns on its financial health. TFX may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make TFX suitable for value investing!
1. Profitability
1.1 Basic Checks
TFX had positive earnings in the past year.
TFX had a positive operating cash flow in the past year.
Each year in the past 5 years TFX has been profitable.
Each year in the past 5 years TFX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of TFX (2.09%) is better than 75.94% of its industry peers.
TFX has a better Return On Equity (3.65%) than 77.54% of its industry peers.
TFX's Return On Invested Capital of 7.30% is amongst the best of the industry. TFX outperforms 83.96% of its industry peers.
TFX had an Average Return On Invested Capital over the past 3 years of 7.21%. This is in line with the industry average of 7.89%.
The 3 year average ROIC (7.21%) for TFX is below the current ROIC(7.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROIC | 7.3% |
ROA(3y)3.65%
ROA(5y)4.54%
ROE(3y)6.23%
ROE(5y)8.33%
ROIC(3y)7.21%
ROIC(5y)7.23%
1.3 Margins
TFX has a Profit Margin of 4.96%. This is in the better half of the industry: TFX outperforms 78.07% of its industry peers.
TFX's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 17.94%, TFX belongs to the best of the industry, outperforming 90.37% of the companies in the same industry.
In the last couple of years the Operating Margin of TFX has remained more or less at the same level.
TFX has a Gross Margin (55.68%) which is in line with its industry peers.
TFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% |
OM growth 3Y-3.43%
OM growth 5Y0.95%
PM growth 3Y-49.04%
PM growth 5Y-33.65%
GM growth 3Y0.43%
GM growth 5Y-0.56%
2. Health
2.1 Basic Checks
TFX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TFX has less shares outstanding
TFX has less shares outstanding than it did 5 years ago.
TFX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.62 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.62, TFX is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Debt to FCF ratio of TFX is 3.97, which is a good value as it means it would take TFX, 3.97 years of fcf income to pay off all of its debts.
TFX has a better Debt to FCF ratio (3.97) than 86.10% of its industry peers.
TFX has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
TFX has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.91
WACC8.03%
2.3 Liquidity
TFX has a Current Ratio of 2.28. This indicates that TFX is financially healthy and has no problem in meeting its short term obligations.
TFX has a Current ratio of 2.28. This is comparable to the rest of the industry: TFX outperforms 41.71% of its industry peers.
TFX has a Quick Ratio of 1.32. This is a normal value and indicates that TFX is financially healthy and should not expect problems in meeting its short term obligations.
TFX has a worse Quick ratio (1.32) than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
TFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
TFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.67% yearly.
Looking at the last year, TFX shows a small growth in Revenue. The Revenue has grown by 0.29% in the last year.
The Revenue has been growing slightly by 3.26% on average over the past years.
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
3.2 Future
The Earnings Per Share is expected to grow by 3.02% on average over the next years.
The Revenue is expected to grow by 3.97% on average over the next years.
EPS Next Y-3.34%
EPS Next 2Y0.77%
EPS Next 3Y2.29%
EPS Next 5Y3.02%
Revenue Next Year1.41%
Revenue Next 2Y3.35%
Revenue Next 3Y3.75%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.10, the valuation of TFX can be described as very reasonable.
TFX's Price/Earnings ratio is rather cheap when compared to the industry. TFX is cheaper than 96.79% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, TFX is valued rather cheaply.
TFX is valuated cheaply with a Price/Forward Earnings ratio of 7.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 95.72% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. TFX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TFX is valued cheaper than 94.65% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TFX is valued cheaply inside the industry as 96.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.23 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.73
EPS Next 2Y0.77%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.13%.
Compared to an average industry Dividend Yield of 1.75, TFX pays a better dividend. On top of this TFX pays more dividend than 94.65% of the companies listed in the same industry.
With a Dividend Yield of 1.13, TFX pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of TFX has a limited annual growth rate of 0.04%.
TFX has been paying a dividend for at least 10 years, so it has a reliable track record.
TFX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
TFX pays out 41.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.99%
EPS Next 2Y0.77%
EPS Next 3Y2.29%
111.06
-2.53 (-2.23%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners110%
Inst Owner Change-0.02%
Ins Owners0.29%
Ins Owner Change12.33%
Market Cap4.91B
Analysts54.29
Price Target154.04 (38.7%)
Short Float %2.25%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP41.99%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.22%
Max EPS beat(2)-0.26%
EPS beat(4)2
Avg EPS beat(4)0.49%
Min EPS beat(4)-1.22%
Max EPS beat(4)1.85%
EPS beat(8)6
Avg EPS beat(8)2.93%
EPS beat(12)10
Avg EPS beat(12)2.67%
EPS beat(16)14
Avg EPS beat(16)4.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-0.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0.07%
PT rev (3m)-6.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.05%
EPS NY rev (1m)0.36%
EPS NY rev (3m)-5.81%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.1 | ||
| Fwd PE | 7.81 | ||
| P/S | 1.63 | ||
| P/FCF | 10.23 | ||
| P/OCF | 8.21 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.14 |
EPS(TTM)13.71
EY12.34%
EPS(NY)14.23
Fwd EY12.81%
FCF(TTM)10.86
FCFY9.78%
OCF(TTM)13.53
OCFY12.18%
SpS68.12
BVpS92.67
TBVpS-17.72
PEG (NY)N/A
PEG (5Y)1.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROCE | 8.32% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 35.73% | ||
| OM | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% | ||
| FCFM | 15.94% |
ROA(3y)3.65%
ROA(5y)4.54%
ROE(3y)6.23%
ROE(5y)8.33%
ROIC(3y)7.21%
ROIC(5y)7.23%
ROICexc(3y)7.52%
ROICexc(5y)7.62%
ROICexgc(3y)37.85%
ROICexgc(5y)40.71%
ROCE(3y)8.23%
ROCE(5y)8.25%
ROICexcg growth 3Y-9.53%
ROICexcg growth 5Y0.44%
ROICexc growth 3Y-3.04%
ROICexc growth 5Y1.71%
OM growth 3Y-3.43%
OM growth 5Y0.95%
PM growth 3Y-49.04%
PM growth 5Y-33.65%
GM growth 3Y0.43%
GM growth 5Y-0.56%
F-Score5
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 42.78% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | 321.2% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.62 |
F-Score5
WACC8.03%
ROIC/WACC0.91
Cap/Depr(3y)39.38%
Cap/Depr(5y)37.65%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.24%
Profit Quality(3y)307.01%
Profit Quality(5y)228.72%
High Growth Momentum
Growth
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
EPS Next Y-3.34%
EPS Next 2Y0.77%
EPS Next 3Y2.29%
EPS Next 5Y3.02%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
Revenue Next Year1.41%
Revenue Next 2Y3.35%
Revenue Next 3Y3.75%
Revenue Next 5Y3.97%
EBIT growth 1Y-7.13%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year11.15%
EBIT Next 3Y7.21%
EBIT Next 5Y6.23%
FCF growth 1Y73.68%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y64.14%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%