TELEFLEX INC (TFX) Stock Fundamental Analysis
USA - NYSE:TFX - US8793691069 - Common Stock
125.5 USD
+1.58 (+1.28%)
125.99 USD
+0.49 (+0.39%)
We assign a fundamental rating of 6 out of 10 to TFX. TFX was compared to 191 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. TFX is valued quite cheap, while showing a decent growth score. This is a good combination! This makes TFX very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TFX was profitable.
In the past year TFX had a positive cash flow from operations.
Each year in the past 5 years TFX has been profitable.
TFX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.60%, TFX is doing good in the industry, outperforming 76.96% of the companies in the same industry.
TFX's Return On Equity of 4.52% is fine compared to the rest of the industry. TFX outperforms 76.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.80%, TFX belongs to the top of the industry, outperforming 85.34% 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 8.97%.
The last Return On Invested Capital (7.80%) for TFX is above the 3 year average (7.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 4.52% | ||
| ROIC | 7.8% |
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
The Profit Margin of TFX (6.31%) is better than 78.01% of its industry peers.
TFX's Profit Margin has declined in the last couple of years.
The Operating Margin of TFX (19.49%) is better than 92.15% of its industry peers.
In the last couple of years the Operating Margin of TFX has remained more or less at the same level.
TFX has a Gross Margin (55.59%) which is in line with its industry peers.
TFX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.49% | ||
| PM (TTM) | 6.31% | ||
| GM | 55.59% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TFX is destroying value.
The number of shares outstanding for TFX has been reduced compared to 1 year ago.
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
TFX has an Altman-Z score of 2.72. 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 has a better Altman-Z score (2.72) than 67.02% of its industry peers.
The Debt to FCF ratio of TFX is 4.80, which is a neutral value as it means it would take TFX, 4.80 years of fcf income to pay off all of its debts.
TFX has a Debt to FCF ratio of 4.80. This is amongst the best in the industry. TFX outperforms 80.63% of its industry peers.
TFX has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
TFX has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.99
WACC7.86%
2.3 Liquidity
A Current Ratio of 2.41 indicates that TFX has no problem at all paying its short term obligations.
TFX's Current ratio of 2.41 is in line compared to the rest of the industry. TFX outperforms 48.17% of its industry peers.
TFX has a Quick Ratio of 1.44. This is a normal value and indicates that TFX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.44, TFX is doing worse than 60.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
TFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.71%.
TFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.67% yearly.
The Revenue has been growing slightly by 1.11% in the past year.
TFX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)2.71%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%9.06%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%2.28%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
TFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.72% yearly.
EPS Next Y1.17%
EPS Next 2Y4.21%
EPS Next 3Y6.59%
EPS Next 5Y8.54%
Revenue Next Year8.17%
Revenue Next 2Y9.41%
Revenue Next 3Y7.86%
Revenue Next 5Y7.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
TFX is valuated reasonably with a Price/Earnings ratio of 8.95.
Based on the Price/Earnings ratio, TFX is valued cheaply inside the industry as 94.24% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (27.86), we can say TFX is valued rather cheaply.
The Price/Forward Earnings ratio is 8.25, which indicates a very decent valuation of TFX.
96.86% of the companies in the same industry are more expensive than TFX, based on the Price/Forward Earnings ratio.
TFX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TFX is valued cheaply inside the industry as 94.24% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 93.72% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TFX does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)7.66
PEG (5Y)1.92
EPS Next 2Y4.21%
EPS Next 3Y6.59%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.79, TFX pays a better dividend. On top of this TFX pays more dividend than 94.76% of the companies listed in the same industry.
With a Dividend Yield of 1.10, TFX pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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.
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
32.17% of the earnings are spent on dividend by TFX. This is a low number and sustainable payout ratio.
The dividend of TFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP32.17%
EPS Next 2Y4.21%
EPS Next 3Y6.59%
125.5
+1.58 (+1.28%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners102.68%
Inst Owner Change-5.71%
Ins Owners0.3%
Ins Owner Change3.7%
Market Cap5.55B
Analysts54.29
Price Target142.6 (13.63%)
Short Float %2.94%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP32.17%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.31%
Min EPS beat(2)-1.22%
Max EPS beat(2)9.84%
EPS beat(4)2
Avg EPS beat(4)2.55%
Min EPS beat(4)-1.22%
Max EPS beat(4)9.84%
EPS beat(8)6
Avg EPS beat(8)3.51%
EPS beat(12)10
Avg EPS beat(12)3.46%
EPS beat(16)14
Avg EPS beat(16)3.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)0.22%
Revenue beat(4)1
Avg Revenue beat(4)-1.35%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)0.22%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)5
Avg Revenue beat(12)-0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.52%
PT rev (1m)0%
PT rev (3m)-7.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.92%
Revenue NY rev (1m)0.21%
Revenue NY rev (3m)7.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 8.25 | ||
| P/S | 1.82 | ||
| P/FCF | 13.99 | ||
| P/OCF | 10.78 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.3 |
EPS(TTM)14.02
EY11.17%
EPS(NY)15.22
Fwd EY12.12%
FCF(TTM)8.97
FCFY7.15%
OCF(TTM)11.64
OCFY9.27%
SpS68.82
BVpS96.01
TBVpS-14.38
PEG (NY)7.66
PEG (5Y)1.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 4.52% | ||
| ROCE | 8.9% | ||
| ROIC | 7.8% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 34.04% | ||
| OM | 19.49% | ||
| PM (TTM) | 6.31% | ||
| GM | 55.59% | ||
| FCFM | 13.04% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 4.8 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 43.09% | ||
| Cap/Sales | 3.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.37% | ||
| Profit Quality | 206.56% | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 2.72 |
F-Score5
WACC7.86%
ROIC/WACC0.99
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)2.71%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%9.06%
EPS Next Y1.17%
EPS Next 2Y4.21%
EPS Next 3Y6.59%
EPS Next 5Y8.54%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%2.28%
Revenue Next Year8.17%
Revenue Next 2Y9.41%
Revenue Next 3Y7.86%
Revenue Next 5Y7.72%
EBIT growth 1Y5.63%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year12.96%
EBIT Next 3Y11.13%
EBIT Next 5Y6.67%
FCF growth 1Y22.13%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y25.21%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%