TEMPUR SEALY INTERNATIONAL I (TPX) Stock Fundamental Analysis
NYSE:TPX - New York Stock Exchange, Inc. - US88023U1016 - Common Stock - Currency: USD
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Household Durables industry. While TPX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, TPX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year TPX was profitable.
TPX had a positive operating cash flow in the past year.
In the past 5 years TPX has always been profitable.
In the past 5 years TPX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TPX (8.53%) is better than 64.62% of its industry peers.
TPX's Return On Equity of 69.00% is amongst the best of the industry. TPX outperforms 98.46% of its industry peers.
TPX has a better Return On Invested Capital (13.89%) than 78.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TPX is significantly above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROIC | 13.89% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
1.3 Margins
The Profit Margin of TPX (7.96%) is better than 64.62% of its industry peers.
TPX's Profit Margin has improved in the last couple of years.
TPX's Operating Margin of 12.81% is fine compared to the rest of the industry. TPX outperforms 72.31% of its industry peers.
TPX's Operating Margin has improved in the last couple of years.
TPX has a Gross Margin of 44.51%. This is amongst the best in the industry. TPX outperforms 84.62% of its industry peers.
In the last couple of years the Gross Margin of TPX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% |
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TPX is creating value.
TPX has more shares outstanding than it did 1 year ago.
TPX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TPX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.78 indicates that TPX is not in any danger for bankruptcy at the moment.
TPX has a better Altman-Z score (4.78) than 75.38% of its industry peers.
The Debt to FCF ratio of TPX is 4.37, which is a neutral value as it means it would take TPX, 4.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.37, TPX is doing good in the industry, outperforming 61.54% of the companies in the same industry.
A Debt/Equity ratio of 3.95 is on the high side and indicates that TPX has dependencies on debt financing.
TPX's Debt to Equity ratio of 3.95 is on the low side compared to the rest of the industry. TPX is outperformed by 95.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.55
WACC8.99%
2.3 Liquidity
TPX has a Current Ratio of 1.14. This is a normal value and indicates that TPX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TPX (1.14) is worse than 87.69% of its industry peers.
TPX has a Quick Ratio of 1.14. This is a bad value and indicates that TPX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TPX (0.65) is worse than 67.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
TPX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.48%.
The Earnings Per Share has been growing by 27.51% on average over the past years. This is a very strong growth
Looking at the last year, TPX shows a decrease in Revenue. The Revenue has decreased by -0.99% in the last year.
The Revenue has been growing by 12.75% on average over the past years. This is quite good.
EPS 1Y (TTM)2.48%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%6.49%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
3.2 Future
Based on estimates for the next years, TPX will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.18% on average per year.
Based on estimates for the next years, TPX will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
Revenue Next 5Y3.48%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.73, TPX can be considered very expensive at the moment.
61.54% of the companies in the same industry are cheaper than TPX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, TPX is valued at the same level.
With a Price/Forward Earnings ratio of 23.74, TPX is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TPX indicates a slightly more expensive valuation: TPX is more expensive than 70.77% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of TPX to the average of the S&P500 Index (21.90), we can say TPX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TPX is valued a bit more expensive than 64.62% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TPX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.49 | ||
| EV/EBITDA | 20.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
TPX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.02
PEG (5Y)1.01
EPS Next 2Y9.65%
EPS Next 3Y10.26%
5. Dividend
5.1 Amount
TPX has a yearly dividend return of 0.76%, which is pretty low.
TPX's Dividend Yield is a higher than the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.42, TPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of TPX grows each year by 43.15%, which is quite nice.
TPX has been paying a dividend for over 5 years, so it has already some track record.
TPX has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)43.15%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
TPX pays out 22.85% of its income as dividend. This is a sustainable payout ratio.
The dividend of TPX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.85%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
68.78
+0.34 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners81.34%
Inst Owner Change32.17%
Ins Owners2.78%
Ins Owner Change7.87%
Market Cap14.30B
Analysts78.57
Price Target75.99 (10.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend0.45
Dividend Growth(5Y)43.15%
DP22.85%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.83%
Min EPS beat(2)-2.2%
Max EPS beat(2)0.54%
EPS beat(4)2
Avg EPS beat(4)-0.68%
Min EPS beat(4)-3.54%
Max EPS beat(4)2.49%
EPS beat(8)5
Avg EPS beat(8)-0.12%
EPS beat(12)7
Avg EPS beat(12)0.28%
EPS beat(16)11
Avg EPS beat(16)5.84%
Revenue beat(2)0
Avg Revenue beat(2)-2.26%
Min Revenue beat(2)-4.45%
Max Revenue beat(2)-0.08%
Revenue beat(4)0
Avg Revenue beat(4)-2.17%
Min Revenue beat(4)-4.45%
Max Revenue beat(4)-0.08%
Revenue beat(8)1
Avg Revenue beat(8)-1.99%
Revenue beat(12)2
Avg Revenue beat(12)-2.35%
Revenue beat(16)6
Avg Revenue beat(16)-1.12%
PT rev (1m)20.65%
PT rev (3m)20.65%
EPS NQ rev (1m)0.53%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 23.74 | ||
| P/S | 2.92 | ||
| P/FCF | 27.49 | ||
| P/OCF | 22.75 | ||
| P/B | 25.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.99 |
EPS(TTM)2.48
EY3.61%
EPS(NY)2.9
Fwd EY4.21%
FCF(TTM)2.5
FCFY3.64%
OCF(TTM)3.02
OCFY4.4%
SpS23.54
BVpS2.72
TBVpS-6
PEG (NY)5.02
PEG (5Y)1.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 69% | ||
| ROCE | 17.63% | ||
| ROIC | 13.89% | ||
| ROICexc | 14.31% | ||
| ROICexgc | 30.12% | ||
| OM | 12.81% | ||
| PM (TTM) | 7.96% | ||
| GM | 44.51% | ||
| FCFM | 10.63% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.57%
ROIC(5y)15.91%
ROICexc(3y)17.49%
ROICexc(5y)16.63%
ROICexgc(3y)41.15%
ROICexgc(5y)40.69%
ROCE(3y)21.04%
ROCE(5y)20.19%
ROICexcg growth 3Y-17.23%
ROICexcg growth 5Y-4.88%
ROICexc growth 3Y-9.87%
ROICexc growth 5Y4.24%
OM growth 3Y-4.89%
OM growth 5Y3.81%
PM growth 3Y-7.64%
PM growth 5Y14.98%
GM growth 3Y-0.86%
GM growth 5Y0.37%
F-Score6
Asset Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.95 | ||
| Debt/FCF | 4.37 | ||
| Debt/EBITDA | 2.84 | ||
| Cap/Depr | 68.85% | ||
| Cap/Sales | 2.22% | ||
| Interest Coverage | 4.41 | ||
| Cash Conversion | 80.1% | ||
| Profit Quality | 133.5% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 4.78 |
F-Score6
WACC8.99%
ROIC/WACC1.55
Cap/Depr(3y)162.37%
Cap/Depr(5y)139.8%
Cap/Sales(3y)4.16%
Cap/Sales(5y)3.67%
Profit Quality(3y)72.09%
Profit Quality(5y)98.13%
High Growth Momentum
Growth
EPS 1Y (TTM)2.48%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%6.49%
EPS Next Y5.53%
EPS Next 2Y9.65%
EPS Next 3Y10.26%
EPS Next 5Y10.18%
Revenue 1Y (TTM)-0.99%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%1.79%
Revenue Next Year-0.52%
Revenue Next 2Y1.88%
Revenue Next 3Y2.85%
Revenue Next 5Y3.48%
EBIT growth 1Y0.82%
EBIT growth 3Y4.84%
EBIT growth 5Y17.05%
EBIT Next Year30.06%
EBIT Next 3Y15%
EBIT Next 5Y11.43%
FCF growth 1Y244.37%
FCF growth 3Y-10.88%
FCF growth 5Y28.58%
OCF growth 1Y53.97%
OCF growth 3Y-4.51%
OCF growth 5Y25.51%