TELEFLEX INC (TFX) Stock Fundamental Analysis
NYSE:TFX - New York Stock Exchange, Inc. - US8793691069 - Common Stock - Currency: USD
TFX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 187 industry peers in the Health Care Equipment & Supplies industry. While TFX belongs to the best of the industry regarding profitability, 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.
TFX had a positive operating cash flow in the past year.
TFX had positive earnings in each of the past 5 years.
Each year in the past 5 years TFX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.09%, TFX is doing good in the industry, outperforming 75.94% of the companies in the same industry.
TFX has a Return On Equity of 3.65%. This is in the better half of the industry: TFX outperforms 77.54% of its industry peers.
TFX has a Return On Invested Capital of 7.30%. This is amongst the best in the industry. TFX outperforms 83.96% 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 7.89%.
The 3 year average ROIC (7.21%) for TFX is below the current ROIC(7.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROIC | 7.3% |
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 has a Profit Margin of 4.96%. This is in the better half of the industry: TFX outperforms 78.07% of its industry peers.
In the last couple of years the Profit Margin of TFX has declined.
TFX's Operating Margin of 17.94% is amongst the best of the industry. TFX outperforms 90.37% of its industry peers.
TFX's Operating Margin has been stable in the last couple of years.
TFX has a Gross Margin (55.68%) which is in line with 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 | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% |
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.
Compared to 1 year ago, TFX has less shares outstanding
Compared to 5 years ago, TFX has less shares outstanding
Compared to 1 year ago, TFX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that TFX is not a great score, but indicates only limited risk for bankruptcy at the moment.
TFX has a better Altman-Z score (2.69) than 66.84% of its industry peers.
TFX has a debt to FCF ratio of 3.97. This is a good value and a sign of high solvency as TFX would need 3.97 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.97, TFX belongs to the best of the industry, outperforming 86.10% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that TFX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, TFX perfoms like the industry average, outperforming 44.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.86
WACC8.53%
2.3 Liquidity
A Current Ratio of 2.28 indicates that TFX has no problem at all paying its short term obligations.
With a Current ratio value of 2.28, TFX perfoms like the industry average, outperforming 41.71% of the companies in the same industry.
TFX has a Quick Ratio of 1.32. 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 1.32, TFX is doing worse than 66.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
TFX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.51%.
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 0.29% in the last year.
Measured over the past years, TFX shows a small growth in Revenue. The Revenue has been growing by 3.26% on average per year.
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
3.2 Future
TFX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.02% yearly.
Based on estimates for the next years, TFX will show a small growth in Revenue. The Revenue will grow by 3.97% on average per year.
EPS Next Y-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
Revenue Next 5Y3.97%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 8.87, the valuation of TFX can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of TFX indicates a rather cheap valuation: TFX is cheaper than 96.26% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of TFX to the average of the S&P500 Index (27.28), we can say TFX is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.55, the valuation of TFX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, TFX is valued cheaply inside the industry as 95.19% of the companies are valued more expensively.
TFX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
93.58% of the companies in the same industry are more expensive than TFX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, TFX is valued cheaply inside the industry as 96.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
TFX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.9
EPS Next 2Y0.74%
EPS Next 3Y2.26%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.14%. Purely for dividend investing, there may be better candidates out there.
TFX's Dividend Yield is rather good when compared to the industry average which is at 1.82. TFX pays more dividend than 95.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, TFX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
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 pays out 41.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TFX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.99%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
121.59
-0.24 (-0.2%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners110%
Inst Owner Change2.33%
Ins Owners0.29%
Ins Owner Change12.33%
Market Cap5.37B
Analysts54.29
Price Target154.04 (26.69%)
Short Float %2.37%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.14% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP41.99%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.02%
Min EPS beat(2)-0.26%
Max EPS beat(2)0.23%
EPS beat(4)3
Avg EPS beat(4)0.86%
Min EPS beat(4)-0.26%
Max EPS beat(4)1.85%
EPS beat(8)7
Avg EPS beat(8)3.12%
EPS beat(12)11
Avg EPS beat(12)2.79%
EPS beat(16)15
Avg EPS beat(16)4.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-0.8%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)-0.8%
Revenue beat(8)3
Avg Revenue beat(8)-0.63%
Revenue beat(12)4
Avg Revenue beat(12)-0.72%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)0.07%
PT rev (3m)-8.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.78%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-5.83%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 8.55 | ||
| P/S | 1.78 | ||
| P/FCF | 11.2 | ||
| P/OCF | 8.99 | ||
| P/B | 1.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)13.71
EY11.28%
EPS(NY)14.22
Fwd EY11.69%
FCF(TTM)10.86
FCFY8.93%
OCF(TTM)13.53
OCFY11.13%
SpS68.12
BVpS92.67
TBVpS-17.72
PEG (NY)N/A
PEG (5Y)1.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.09% | ||
| ROE | 3.65% | ||
| ROCE | 8.32% | ||
| ROIC | 7.3% | ||
| ROICexc | 7.63% | ||
| ROICexgc | 35.73% | ||
| OM | 17.94% | ||
| PM (TTM) | 4.96% | ||
| GM | 55.68% | ||
| FCFM | 15.94% |
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 Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.97 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 42.78% | ||
| Cap/Sales | 3.92% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | 321.2% | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 2.69 |
F-Score5
WACC8.53%
ROIC/WACC0.86
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)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
EPS Next Y-3.36%
EPS Next 2Y0.74%
EPS Next 3Y2.26%
EPS Next 5Y3.02%
Revenue 1Y (TTM)0.29%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
Revenue Next Year0.9%
Revenue Next 2Y2.79%
Revenue Next 3Y3.3%
Revenue Next 5Y3.97%
EBIT growth 1Y-7.13%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year11.15%
EBIT Next 3Y7.21%
EBIT Next 5Y6.23%
FCF growth 1Y73.68%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y64.14%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%