When you look at TELEFLEX INC (NYSE:TFX), it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Mar 3, 2025

TELEFLEX INC (NYSE:TFX) is a hidden gem identified by our stock screening tool, featuring undervaluation and robust fundamentals. NYSE:TFX showcases decent financial health and profitability, coupled with an attractive price. Let's dig deeper into the analysis.

Exploring NYSE:TFX's Valuation

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:TFX has achieved a 8 out of 10:

With a Price/Earnings ratio of 9.48, the valuation of TFX can be described as very reasonable.
Based on the Price/Earnings ratio, TFX is valued cheaply inside the industry as 96.77% of the companies are valued more expensively.
TFX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.98.
With a Price/Forward Earnings ratio of 8.63, the valuation of TFX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TFX is valued cheaper than 97.85% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. TFX is valued rather cheaply when compared to this.
TFX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TFX is cheaper than 93.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TFX is valued cheaper than 94.62% of the companies in the same industry.
TFX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of TFX may justify a higher PE ratio.

How do we evaluate the Profitability for NYSE:TFX?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:TFX has achieved a 7:

With a decent Return On Assets value of 0.98%, TFX is doing good in the industry, outperforming 73.66% of the companies in the same industry.
With a decent Return On Equity value of 1.63%, TFX is doing good in the industry, outperforming 74.73% of the companies in the same industry.
The Return On Invested Capital of TFX (7.42%) is better than 83.87% of its industry peers.
The last Return On Invested Capital (7.42%) for TFX is above the 3 year average (7.21%), which is a sign of increasing profitability.
With a decent Profit Margin value of 2.29%, TFX is doing good in the industry, outperforming 73.66% of the companies in the same industry.
TFX's Operating Margin of 17.91% is amongst the best of the industry. TFX outperforms 89.78% of its industry peers.

Analyzing Health Metrics

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:TFX has achieved a 6 out of 10:

TFX's Altman-Z score of 2.95 is fine compared to the rest of the industry. TFX outperforms 67.74% of its industry peers.
TFX has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as TFX would need 3.25 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.25, TFX belongs to the best of the industry, outperforming 86.02% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that TFX is not too dependend on debt financing.
A Current Ratio of 2.27 indicates that TFX has no problem at all paying its short term obligations.

Assessing Growth Metrics for NYSE:TFX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:TFX was assigned a score of 4 for growth:

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.

More Decent Value stocks can be found in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of TFX

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.