TFX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 186 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of TFX get a neutral evaluation. Nothing too spectacular is happening here. TFX is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TFX very considerable for value investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years TFX always reported a positive cash flow from operatings.

1.2 Ratios

TFX has a better Return On Assets (-4.17%) than 69.89% of its industry peers.
TFX's Return On Equity of -8.58% is fine compared to the rest of the industry. TFX outperforms 69.35% of its industry peers.
TFX's Return On Invested Capital of 6.93% is amongst the best of the industry. TFX outperforms 81.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TFX is in line with the industry average of 8.80%.

		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

In the last couple of years the Profit Margin of TFX has declined.
TFX has a Operating Margin of 17.59%. This is amongst the best in the industry. TFX outperforms 89.25% of its industry peers.
In the last couple of years the Operating Margin of TFX has remained more or less at the same level.
Looking at the Gross Margin, with a value of 53.67%, TFX is in line with its industry, outperforming 50.54% of the companies in the same industry.
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	17.59%
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
TFX has less shares outstanding than it did 1 year ago.
TFX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TFX has been reduced compared to a year ago.

2.2 Solvency

TFX has an Altman-Z score of 2.20. This is not the best score and indicates that TFX is in the grey zone with still only limited risk for bankruptcy at the moment.
TFX's Altman-Z score of 2.20 is fine compared to the rest of the industry. TFX outperforms 62.90% 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.
TFX has a Debt to FCF ratio of 10.11. This is in the better half of the industry: TFX outperforms 72.58% of its industry peers.
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 65.59% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.67
Debt/FCF	10.11
Altman-Z	2.2

ROIC/WACC0.68

WACC10.12%

2.3 Liquidity

TFX has a Current Ratio of 2.57. This indicates that TFX is financially healthy and has no problem in meeting its short term obligations.
TFX has a Current ratio (2.57) which is in line with its industry peers.
A Quick Ratio of 1.53 indicates that TFX should not have too much problems paying its short term obligations.
The Quick ratio of TFX (1.53) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.57
Quick Ratio	1.53

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.19% 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.
Looking at the last year, TFX shows a small growth in Revenue. The Revenue has grown by 5.43% in the last year.
The Revenue has been growing slightly by 3.26% on average over the past years.

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 7.28, the valuation of TFX can be described as very cheap.
Based on the Price/Earnings ratio, TFX is valued cheaper than 97.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.41. TFX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.82 indicates a rather cheap valuation of TFX.
Based on the Price/Forward Earnings ratio, TFX is valued cheaper than 97.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, TFX is valued rather cheaply.

		Industry Rank	Sector Rank
PE	7.28
Fwd PE	6.82

4.2 Price Multiples

94.62% of the companies in the same industry are more expensive than TFX, based on the Enterprise Value to EBITDA ratio.
93.01% of the companies in the same industry are more expensive than TFX, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	17.28
EV/EBITDA	8.21

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)5.61

PEG (5Y)1.56

EPS Next 2Y4.03%

EPS Next 3Y4.48%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.29%, 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 0.21. TFX pays more dividend than 94.62% of the companies in the same industry.
TFX's Dividend Yield is slightly below the S&P500 average, which is at 1.83.

		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 paid a dividend for at least 10 years, which is 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%

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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 7.28 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.