TELEFLEX INC (TFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFX - US8793691069 - Common Stock
104.2 USD
+0.8 (+0.77%)
104.2 USD
0 (0%)
Taking everything into account, TFX scores 6 out of 10 in our fundamental rating. TFX was compared to 184 industry peers in the Health Care Equipment & Supplies industry. TFX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TFX. These ratings could make TFX a good candidate 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.
- In the past 5 years TFX has always been profitable.
- TFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- TFX has a better Return On Assets (-4.17%) than 69.57% of its industry peers.
- TFX has a Return On Equity of -8.58%. This is in the better half of the industry: TFX outperforms 69.02% of its industry peers.
- TFX has a better Return On Invested Capital (6.93%) than 81.52% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TFX is in line with the industry average of 8.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.17% | ||
| ROE | -8.58% | ||
| ROIC | 6.93% |
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's Profit Margin has declined in the last couple of years.
- TFX has a Operating Margin of 17.59%. This is amongst the best in the industry. TFX outperforms 89.13% of its industry peers.
- TFX's Operating Margin has been stable in the last couple of years.
- With a Gross Margin value of 53.67%, TFX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- TFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.59% | ||
| PM (TTM) | N/A | ||
| GM | 53.67% |
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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TFX is destroying value.
- Compared to 1 year ago, TFX has less shares outstanding
- The number of shares outstanding for TFX has been reduced compared to 5 years ago.
- Compared to 1 year ago, TFX has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.20 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- TFX has a Altman-Z score of 2.20. This is in the better half of the industry: TFX outperforms 63.04% of its industry peers.
- The Debt to FCF ratio of TFX is 10.11, which is on the high side as it means it would take TFX, 10.11 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 10.11, TFX is doing good in the industry, outperforming 72.28% of the companies in the same industry.
- A Debt/Equity ratio of 0.67 indicates that TFX is somewhat dependend on debt financing.
- The Debt to Equity ratio of TFX (0.67) is worse than 65.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.69
WACC10.03%
2.3 Liquidity
- A Current Ratio of 2.57 indicates that TFX has no problem at all paying its short term obligations.
- The Current ratio of TFX (2.57) is comparable to the rest of the industry.
- A Quick Ratio of 1.53 indicates that TFX should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.53, TFX is in line with its industry, outperforming 44.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 5.19% over the past year.
- The Earnings Per Share has been growing slightly by 4.67% on average over the past years.
- Looking at the last year, TFX shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
- Measured over the past years, TFX shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
EPS 1Y (TTM)5.19%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%5.16%
Revenue 1Y (TTM)5.43%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%19.45%
3.2 Future
- TFX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.83% yearly.
- TFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.72% yearly.
EPS Next Y1.3%
EPS Next 2Y4.03%
EPS Next 3Y4.48%
EPS Next 5Y6.83%
Revenue Next Year7.4%
Revenue Next 2Y8.87%
Revenue Next 3Y7.31%
Revenue Next 5Y6.72%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 7.34 indicates a rather cheap valuation of TFX.
- Compared to the rest of the industry, the Price/Earnings ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 97.83% of the companies listed in the same industry.
- TFX is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 6.87, the valuation of TFX can be described as very cheap.
- 98.37% of the companies in the same industry are more expensive than TFX, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
- TFX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TFX is cheaper than 95.11% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 92.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- TFX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.65
PEG (5Y)1.57
EPS Next 2Y4.03%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- TFX has a Yearly Dividend Yield of 1.29%.
- TFX's Dividend Yield is rather good when compared to the industry average which is at 0.20. TFX pays more dividend than 94.57% of the companies in the same industry.
- TFX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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.
- As TFX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.04%
Div Incr Years0
Div Non Decr Years6
5.3 Sustainability
- TFX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- The dividend of TFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-18.59%
EPS Next 2Y4.03%
EPS Next 3Y4.48%
TELEFLEX INC / TFX FAQ
What is the ChartMill fundamental rating of TELEFLEX INC (TFX) stock?
ChartMill assigns a fundamental rating of 6 / 10 to TFX.
What is the valuation status for TFX stock?
ChartMill assigns a valuation rating of 8 / 10 to TELEFLEX INC (TFX). This can be considered as Undervalued.
What is the profitability of TFX stock?
TELEFLEX INC (TFX) has a profitability rating of 6 / 10.
What is the valuation of TELEFLEX INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TELEFLEX INC (TFX) is 7.34 and the Price/Book (PB) ratio is 1.2.
How financially healthy is TELEFLEX INC?
The financial health rating of TELEFLEX INC (TFX) is 5 / 10.