TELEFLEX INC (TFX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TFX - US8793691069 - Common Stock
104.2 USD
+0.8 (+0.77%)
104.2 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to TFX. TFX was compared to 184 industry peers in the Health Care Equipment & Supplies industry. TFX has an average financial health and profitability rating. A decent growth rate in combination with a cheap valuation! Better keep an eye on TFX. This makes TFX very considerable 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.
- In the past 5 years TFX always reported a positive cash flow from operatings.
1.2 Ratios
- TFX's Return On Assets of -4.17% is fine compared to the rest of the industry. TFX outperforms 69.57% of its industry peers.
- TFX has a Return On Equity of -8.58%. This is in the better half of the industry: TFX outperforms 69.02% of its industry peers.
- TFX has a better Return On Invested Capital (6.93%) than 81.52% 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 8.81%.
| 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
- TFX's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 17.59%, TFX belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
- TFX's Operating Margin has been stable in the last couple of years.
- TFX's Gross Margin of 53.67% is in line compared to the rest of the industry. TFX outperforms 50.00% of 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 | 17.59% | ||
| 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%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TFX is destroying value.
- TFX has less shares outstanding than it did 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 2.19. 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 2.19 is fine compared to the rest of the industry. TFX outperforms 62.50% 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's Debt to FCF ratio of 10.11 is fine compared to the rest of the industry. TFX outperforms 72.28% of its industry peers.
- A Debt/Equity ratio of 0.67 indicates that TFX is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.67, TFX is not doing good in the industry: 65.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 10.11 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.69
WACC10.03%
2.3 Liquidity
- A Current Ratio of 2.57 indicates that TFX has no problem at all paying its short term obligations.
- The Current ratio of TFX (2.57) is comparable to the rest of the industry.
- A Quick Ratio of 1.53 indicates that TFX should not have too much problems paying its short term obligations.
- TFX has a Quick ratio of 1.53. This is comparable to the rest of the industry: TFX outperforms 44.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
- TFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.19%.
- TFX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.67% yearly.
- 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
- The Earnings Per Share is expected to grow by 6.83% on average over the next years.
- Based on estimates for the next years, TFX will show a small growth in Revenue. The Revenue will grow by 6.72% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.34, the valuation of TFX can be described as very cheap.
- Based on the Price/Earnings ratio, TFX is valued cheaper than 97.83% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (27.25), we can say TFX is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.87, the valuation of TFX can be described as very cheap.
- TFX's Price/Forward Earnings ratio is rather cheap when compared to the industry. TFX is cheaper than 98.37% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 95.11% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 92.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 8.16 |
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)5.65
PEG (5Y)1.57
EPS Next 2Y4.03%
EPS Next 3Y4.48%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.29%, TFX has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.20, TFX pays a better dividend. On top of this TFX pays more dividend than 94.57% of the companies listed in the same industry.
- TFX's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| 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.
- 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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- TFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-18.59%
EPS Next 2Y4.03%
EPS Next 3Y4.48%
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 7.34 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.