TELEFLEX INC (NYSE:TFX) – A Potentially Undervalued Stock with Solid Fundamentals

TELEFLEX INC (NYSE:TFX) was identified by our stock screener as a decent value stock, offering an attractive combination of valuation, profitability, and financial health. The company operates in the medical technology sector, providing a range of single-use medical devices for critical care and surgical applications.

Valuation

TFX stands out with a Valuation Rating of 7/10, indicating it is priced attractively relative to its fundamentals. Key highlights include:

• P/E Ratio of 8.49, significantly below both the industry average (28.46) and the S&P500 (27.30).
• Forward P/E of 8.19, reinforcing the stock’s inexpensive valuation.
• Enterprise Value/EBITDA and Price/Free Cash Flow ratios are also favorable, placing TFX in the top 5% of its industry for affordability.

Profitability

The company earns a Profitability Rating of 7/10, supported by:

• A Return on Invested Capital (ROIC) of 7.30%, outperforming 83.96% of industry peers.
• A strong Operating Margin of 17.94%, ranking in the top 10% of its sector.
• Consistent profitability over the past five years, with positive earnings and cash flow.

Financial Health

With a Health Rating of 6/10, TFX maintains a stable financial position:

• Debt/Equity ratio of 0.44, indicating manageable leverage.
• Current Ratio of 2.28, suggesting sufficient liquidity to meet short-term obligations.
• Share buybacks over the past five years, reflecting management’s confidence in the business.

Growth

While growth is modest, TFX holds a Growth Rating of 4/10:

• Revenue has grown at an average of 3.26% annually over the past years.
• Earnings growth is expected to continue, albeit at a slower pace of 3.02% per year.

For a deeper dive into the company’s fundamentals, review the full TELEFLEX INC fundamental report.

Our Decent Value screener lists more stocks with strong valuations and solid fundamentals, updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.