TELEFLEX INC (TFX) Stock Fundamental Analysis
NYSE:TFX - New York Stock Exchange, Inc. - US8793691069 - Common Stock - Currency: USD
Overall TFX gets a fundamental rating of 6 out of 10. We evaluated TFX against 187 industry peers in the Health Care Equipment & Supplies industry. TFX has an excellent profitability rating, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on TFX. These ratings would make TFX suitable for value investing!
1. Profitability
1.1 Basic Checks
TFX had positive earnings in the past year.
In the past year TFX had a positive cash flow from operations.
TFX had positive earnings in each of the past 5 years.
TFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TFX has a Return On Assets of 2.09%. This is in the better half of the industry: TFX outperforms 75.94% of its industry peers.
With a decent Return On Equity value of 3.65%, TFX is doing good in the industry, outperforming 77.54% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.30%, TFX belongs to the best of the industry, outperforming 83.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TFX 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's Profit Margin of 4.96% is fine compared to the rest of the industry. TFX outperforms 78.07% of its industry peers.
In the last couple of years the Profit Margin of TFX has declined.
The Operating Margin of TFX (17.94%) is better than 90.37% of its industry peers.
TFX's Operating Margin has been stable in the last couple of years.
TFX has a Gross Margin (55.68%) which is in line with its industry peers.
In the last couple of years the Gross Margin of TFX has remained more or less at the same level.
| 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 2.67 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 2.67, 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.
With an excellent Debt to FCF ratio value of 3.97, TFX belongs to the best of the industry, outperforming 86.10% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that TFX is not too dependend on debt financing.
TFX has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: TFX outperforms 44.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.91
WACC8.04%
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.
With a Current ratio value of 2.28, TFX perfoms like the industry average, outperforming 41.71% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that TFX should not have too much problems paying its short term obligations.
The Quick ratio of TFX (1.32) is worse than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.51% over the past year.
Measured over the past 5 years, TFX shows a small growth in Earnings Per Share. The EPS has been growing by 4.67% on average per year.
The Revenue has been growing slightly by 0.29% in the past 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
Based on estimates for the next years, TFX will show a small growth in Earnings Per Share. The EPS will grow by 3.02% on average per year.
TFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.97% yearly.
EPS Next Y-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
Revenue Next 5Y3.97%
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 decreasing.
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
The Price/Earnings ratio is 8.49, which indicates a very decent 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 96.79% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (27.30), we can say TFX is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.19, the valuation of TFX can be described as reasonable.
Based on the Price/Forward Earnings ratio, TFX is valued cheaper than 95.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TFX to the average of the S&P500 Index (21.76), we can say TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 8.19 |
4.2 Price Multiples
94.65% of the companies in the same industry are more expensive than TFX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 96.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y0.74%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, TFX has a reasonable but not impressive dividend return.
TFX's Dividend Yield is rather good when compared to the industry average which is at 1.77. TFX pays more dividend than 95.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, TFX's dividend is way lower than the S&P500 average.
| 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 2Y0.74%
EPS Next 3Y2.26%
116.4
-3.54 (-2.95%)
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 Cap5.14B
Analysts54.29
Price Target154.04 (32.34%)
Short Float %2.37%
Short Ratio1.84
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)-3.78%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-5.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.49 | ||
| Fwd PE | 8.19 | ||
| P/S | 1.71 | ||
| P/FCF | 10.72 | ||
| P/OCF | 8.6 | ||
| P/B | 1.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.49 |
EPS(TTM)13.71
EY11.78%
EPS(NY)14.22
Fwd EY12.21%
FCF(TTM)10.86
FCFY9.33%
OCF(TTM)13.53
OCFY11.62%
SpS68.12
BVpS92.67
TBVpS-17.72
PEG (NY)N/A
PEG (5Y)1.82
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 | 2.67 |
F-Score5
WACC8.04%
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-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
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%