TEMPUR SEALY INTERNATIONAL I (TPX)
US88023U1016 - Common Stock
TPX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. While TPX has a great profitability rating, there are quite some 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.
Each year in the past 5 years TPX had a positive operating cash flow.
1.2 Ratios
TPX has a better Return On Assets (8.08%) than 68.66% of its industry peers.
With an excellent Return On Equity value of 113.82%, TPX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TPX's Return On Invested Capital of 12.84% is fine compared to the rest of the industry. TPX outperforms 79.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TPX is significantly above the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 113.82% | ||
| ROIC | 12.84% |
ROA(3y)10.99%
ROA(5y)9.94%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)16.49%
ROIC(5y)15.86%
1.3 Margins
The Profit Margin of TPX (7.47%) is better than 62.69% of its industry peers.
TPX's Profit Margin has improved in the last couple of years.
TPX has a Operating Margin of 12.07%. This is in the better half of the industry: TPX outperforms 74.63% of its industry peers.
TPX's Operating Margin has improved in the last couple of years.
TPX has a better Gross Margin (43.42%) than 80.60% of its industry peers.
TPX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.07% | ||
| PM (TTM) | 7.47% | ||
| GM | 43.42% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TPX is still creating some value.
TPX has more shares outstanding than it did 1 year ago.
TPX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TPX has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.80 indicates that TPX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.80, TPX is in the better half of the industry, outperforming 64.18% of the companies in the same industry.
TPX has a debt to FCF ratio of 6.68. This is a slightly negative value and a sign of low solvency as TPX would need 6.68 years to pay back of all of its debts.
The Debt to FCF ratio of TPX (6.68) is worse than 61.19% of its industry peers.
TPX has a Debt/Equity ratio of 7.81. This is a high value indicating a heavy dependency on external financing.
TPX's Debt to Equity ratio of 7.81 is on the low side compared to the rest of the industry. TPX is outperformed by 95.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.81 | ||
| Debt/FCF | 6.68 | ||
| Altman-Z | 3.8 |
ROIC/WACC1.23
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.21 indicates that TPX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, TPX is doing worse than 89.55% of the companies in the same industry.
TPX has a Quick Ratio of 1.21. 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 (0.68) is worse than 73.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for TPX have decreased by -6.95% in the last year.
Measured over the past years, TPX shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.51% on average per year.
The Revenue has been growing slightly by 0.09% in the past year.
TPX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.75% yearly.
EPS 1Y (TTM)-6.95%
EPS 3Y8.06%
EPS 5Y27.51%
EPS growth Q2Q-1.85%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Revenue growth Q2Q-1.42%
3.2 Future
The Earnings Per Share is expected to grow by 12.48% on average over the next years. This is quite good.
TPX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.92% yearly.
EPS Next Y15.25%
EPS Next 2Y15.99%
EPS Next 3Y12.97%
EPS Next 5Y12.48%
Revenue Next Year4%
Revenue Next 2Y4.5%
Revenue Next 3Y4.06%
Revenue Next 5Y3.92%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
TPX is valuated rather expensively with a Price/Earnings ratio of 20.88.
TPX's Price/Earnings is on the same level as the industry average.
TPX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.12, TPX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as TPX.
TPX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TPX indicates a slightly more expensive valuation: TPX is more expensive than 64.18% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, TPX is valued a bit more expensive than the industry average as 68.66% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.69 | ||
| EV/EBITDA | 15.29 |
4.3 Compensation for Growth
TPX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TPX has an outstanding profitability rating, which may justify a higher PE ratio.
TPX's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)0.76
EPS Next 2Y15.99%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
TPX has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.32, TPX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, TPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of TPX is nicely growing with an annual growth rate of 43.15%!
TPX has been paying a dividend for over 5 years, so it has already some track record.
TPX has decreased its dividend in the last 3 years.
Dividend Growth(5Y)43.15%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TPX pays out 21.11% of its income as dividend. This is a sustainable payout ratio.
TPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.11%
EPS Next 2Y15.99%
EPS Next 3Y12.97%
TEMPUR SEALY INTERNATIONAL I
NYSE:TPX (4/26/2024, 8:55:01 AM)
50.315
+0.42 (+0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.88 | ||
| Fwd PE | 18.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.37
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.08% | ||
| ROE | 113.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.07% | ||
| PM (TTM) | 7.47% | ||
| GM | 43.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.81 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-6.95%
EPS 3Y8.06%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.09%
Revenue growth 3Y10.24%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y