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 189 industry peers in the Health Care Equipment & Supplies industry. While TFX has a great profitability rating, there are some minor concerns on its financial health. TFX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make TFX a good candidate 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.
Each year in the past 5 years TFX had a positive operating cash flow.
1.2 Ratios
TFX has a Return On Assets of 0.98%. This is in the better half of the industry: TFX outperforms 73.55% of its industry peers.
Looking at the Return On Equity, with a value of 1.63%, TFX is in the better half of the industry, outperforming 75.13% of the companies in the same industry.
With an excellent Return On Invested Capital value of 7.42%, TFX belongs to the best of the industry, outperforming 83.60% of the companies in the same industry.
TFX had an Average Return On Invested Capital over the past 3 years of 7.21%. This is in line with the industry average of 7.71%.
The 3 year average ROIC (7.21%) for TFX is below the current ROIC(7.42%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.63% | ||
| ROIC | 7.42% |
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
Looking at the Profit Margin, with a value of 2.29%, TFX is in the better half of the industry, outperforming 74.60% of the companies in the same industry.
TFX's Profit Margin has declined in the last couple of years.
TFX has a better Operating Margin (17.91%) than 89.95% of its industry peers.
TFX's Operating Margin has been stable in the last couple of years.
TFX's Gross Margin of 55.87% is in line compared to the rest of the industry. TFX outperforms 51.85% 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 | 17.91% | ||
| PM (TTM) | 2.29% | ||
| GM | 55.87% |
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.
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.
The debt/assets ratio for TFX has been reduced compared to a year ago.
2.2 Solvency
TFX has an Altman-Z score of 2.83. 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 2.83 is fine compared to the rest of the industry. TFX outperforms 70.37% 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.
TFX's Debt to FCF ratio of 3.25 is amongst the best of the industry. TFX outperforms 86.77% of its industry peers.
TFX has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
TFX has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: TFX outperforms 47.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.25 | ||
| Altman-Z | 2.83 |
ROIC/WACC0.84
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.27 indicates that TFX has no problem at all paying its short term obligations.
TFX has a Current ratio (2.27) which is in line with its industry peers.
A Quick Ratio of 1.34 indicates that TFX should not have too much problems paying its short term obligations.
The Quick ratio of TFX (1.34) is worse than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.34 |
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%.
The Earnings Per Share has been growing slightly by 4.67% on average over the past years.
TFX shows a small growth in Revenue. In the last year, the Revenue has grown by 2.45%.
TFX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.26% yearly.
EPS 1Y (TTM)0.51%
EPS 3Y1.67%
EPS 5Y4.67%
EPS Q2Q%-9.35%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
3.2 Future
The Earnings Per Share is expected to grow by 3.99% on average over the next years.
TFX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.51% yearly.
EPS Next Y1.87%
EPS Next 2Y3.6%
EPS Next 3Y2.95%
EPS Next 5Y3.99%
Revenue Next Year-0.64%
Revenue Next 2Y2.07%
Revenue Next 3Y2.97%
Revenue Next 5Y3.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.23, which indicates a very decent valuation of TFX.
95.77% of the companies in the same industry are more expensive than TFX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.75, TFX is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.41, 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 96.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, TFX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TFX is valued cheaply inside the industry as 93.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TFX is valued cheaper than 94.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.1 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of TFX may justify a higher PE ratio.
PEG (NY)4.92
PEG (5Y)1.98
EPS Next 2Y3.6%
EPS Next 3Y2.95%
5. Dividend
5.1 Amount
TFX has a Yearly Dividend Yield of 1.08%. Purely for dividend investing, there may be better candidates out there.
The stock price of TFX dropped by -30.17% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 1.87, TFX pays a better dividend. On top of this TFX pays more dividend than 94.18% of the companies listed in the same industry.
With a Dividend Yield of 1.08, TFX pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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
91.20% of the earnings are spent on dividend by TFX. This is not a sustainable payout ratio.
TFX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP91.2%
EPS Next 2Y3.6%
EPS Next 3Y2.95%
NYSE:TFX (5/2/2025, 1:03:09 PM)
126.53
+0.66 (+0.52%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.87%
Inst Owner Change-0.8%
Ins Owners0.28%
Ins Owner Change9.88%
Market Cap5.65B
Analysts54.29
Price Target161.3 (27.48%)
Short Float %3.51%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend1.36
Dividend Growth(5Y)0.04%
DP91.2%
Div Incr Years0
Div Non Decr Years6
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-0.26%
Max EPS beat(2)1.85%
EPS beat(4)3
Avg EPS beat(4)1.67%
Min EPS beat(4)-0.26%
Max EPS beat(4)3.47%
EPS beat(8)7
Avg EPS beat(8)3.47%
EPS beat(12)11
Avg EPS beat(12)3.09%
EPS beat(16)15
Avg EPS beat(16)5.35%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.16%
Max Revenue beat(4)0.5%
Revenue beat(8)4
Avg Revenue beat(8)-0.22%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)8
Avg Revenue beat(16)-0.28%
PT rev (1m)-14.32%
PT rev (3m)-34.14%
EPS NQ rev (1m)-2.92%
EPS NQ rev (3m)-18.46%
EPS NY rev (1m)-0.73%
EPS NY rev (3m)-7.49%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-9.63%
Revenue NY rev (1m)-1.9%
Revenue NY rev (3m)-5.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.23 | ||
| Fwd PE | 8.41 | ||
| P/S | 1.86 | ||
| P/FCF | 11.1 | ||
| P/OCF | 8.89 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.52 |
EPS(TTM)13.71
EY10.84%
EPS(NY)15.04
Fwd EY11.88%
FCF(TTM)11.4
FCFY9.01%
OCF(TTM)14.23
OCFY11.25%
SpS68.2
BVpS95.75
TBVpS-13.94
PEG (NY)4.92
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.98% | ||
| ROE | 1.63% | ||
| ROCE | 8.46% | ||
| ROIC | 7.42% | ||
| ROICexc | 7.77% | ||
| ROICexgc | 38.05% | ||
| OM | 17.91% | ||
| PM (TTM) | 2.29% | ||
| GM | 55.87% | ||
| FCFM | 16.71% |
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-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 3.25 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 46.04% | ||
| Cap/Sales | 4.15% | ||
| Interest Coverage | 5.55 | ||
| Cash Conversion | 77.5% | ||
| Profit Quality | 730.97% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.83 |
F-Score7
WACC8.83%
ROIC/WACC0.84
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 Y1.87%
EPS Next 2Y3.6%
EPS Next 3Y2.95%
EPS Next 5Y3.99%
Revenue 1Y (TTM)2.45%
Revenue growth 3Y2.74%
Revenue growth 5Y3.26%
Sales Q2Q%-5.03%
Revenue Next Year-0.64%
Revenue Next 2Y2.07%
Revenue Next 3Y2.97%
Revenue Next 5Y3.51%
EBIT growth 1Y-3.02%
EBIT growth 3Y-0.78%
EBIT growth 5Y4.24%
EBIT Next Year14.98%
EBIT Next 3Y8.96%
EBIT Next 5Y6.71%
FCF growth 1Y21.5%
FCF growth 3Y-4.23%
FCF growth 5Y8.62%
OCF growth 1Y24.5%
OCF growth 3Y-0.81%
OCF growth 5Y7.66%