TEMPUR SEALY INTERNATIONAL I (TPX)
US88023U1016 - Common Stock
We assign a fundamental rating of 5 out of 10 to TPX. TPX was compared to 66 industry peers in the Household Durables industry. TPX scores excellent on profitability, but there are concerns on its financial health. TPX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year TPX was profitable.
In the past year TPX had a positive cash flow from operations.
Each year in the past 5 years TPX has 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 (7.83%) is better than 63.08% of its industry peers.
TPX has a Return On Equity of 109.95%. This is amongst the best in the industry. TPX outperforms 98.46% of its industry peers.
The Return On Invested Capital of TPX (12.86%) is better than 78.46% 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 10.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 109.95% | ||
| ROIC | 12.86% |
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
TPX has a Profit Margin (7.32%) which is in line with its industry peers.
In the last couple of years the Profit Margin of TPX has grown nicely.
The Operating Margin of TPX (12.07%) is better than 69.23% of its industry peers.
In the last couple of years the Operating Margin of TPX has grown nicely.
TPX has a Gross Margin of 44.05%. This is amongst the best in the industry. TPX outperforms 83.08% 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) | 7.32% | ||
| GM | 44.05% |
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
TPX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TPX has been increased compared to 1 year ago.
The number of shares outstanding for TPX has been reduced compared to 5 years ago.
TPX has a better debt/assets ratio than last year.
2.2 Solvency
TPX has an Altman-Z score of 3.81. This indicates that TPX is financially healthy and has little risk of bankruptcy at the moment.
TPX has a Altman-Z score (3.81) which is comparable to the rest of the industry.
TPX has a debt to FCF ratio of 5.90. This is a neutral value as TPX would need 5.90 years to pay back of all of its debts.
TPX has a Debt to FCF ratio (5.90) which is comparable to the rest of the industry.
A Debt/Equity ratio of 7.74 is on the high side and indicates that TPX has dependencies on debt financing.
With a Debt to Equity ratio value of 7.74, TPX is not doing good in the industry: 93.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.74 | ||
| Debt/FCF | 5.9 | ||
| Altman-Z | 3.81 |
ROIC/WACC1.3
WACC9.92%
2.3 Liquidity
TPX has a Current Ratio of 1.21. This is a normal value and indicates that TPX is financially healthy and should not expect problems in meeting its short term obligations.
TPX has a Current ratio of 1.21. This is amonst the worse of the industry: TPX underperforms 89.23% of its industry peers.
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.
TPX has a worse Quick ratio (0.70) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
The earnings per share for TPX have decreased by -2.06% in the last year.
The Earnings Per Share has been growing by 27.51% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 0.35% in the past year.
Measured over the past years, TPX shows a quite strong growth in Revenue. The Revenue has been growing by 12.75% on average per year.
EPS 1Y (TTM)-2.06%
EPS 3Y8.06%
EPS 5Y27.51%
EPS Q2Q%-5.66%
Revenue 1Y (TTM)0.35%
Revenue growth 3Y10.24%
Revenue growth 5Y12.75%
Sales Q2Q%-1.55%
3.2 Future
TPX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.63% yearly.
Based on estimates for the next years, TPX will show a small growth in Revenue. The Revenue will grow by 4.27% on average per year.
EPS Next Y13.99%
EPS Next 2Y15.32%
EPS Next 3Y12.86%
EPS Next 5Y12.63%
Revenue Next Year2.53%
Revenue Next 2Y4.18%
Revenue Next 3Y3.77%
Revenue Next 5Y4.27%
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
A Price/Earnings ratio of 21.98 indicates a rather expensive valuation of TPX.
Compared to the rest of the industry, the Price/Earnings ratio of TPX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of TPX to the average of the S&P500 Index (24.41), we can say TPX is valued inline with the index average.
A Price/Forward Earnings ratio of 16.32 indicates a correct valuation of TPX.
The rest of the industry has a similar Price/Forward Earnings ratio as TPX.
When comparing the Price/Forward Earnings ratio of TPX to the average of the S&P500 Index (20.59), we can say TPX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 16.32 |
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 60.00% of the companies listed in the same industry.
TPX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.84 | ||
| EV/EBITDA | 15.46 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TPX may justify a higher PE ratio.
A more expensive valuation may be justified as TPX's earnings are expected to grow with 12.86% in the coming years.
PEG (NY)1.57
PEG (5Y)0.8
EPS Next 2Y15.32%
EPS Next 3Y12.86%
5. Dividend
5.1 Amount
TPX has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
TPX's Dividend Yield is a higher than the industry average which is at 2.49.
Compared to an average S&P500 Dividend Yield of 2.30, TPX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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
22.78% of the earnings are spent on dividend by TPX. This is a low number and sustainable payout ratio.
TPX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.78%
EPS Next 2Y15.32%
EPS Next 3Y12.86%
TEMPUR SEALY INTERNATIONAL I
NYSE:TPX (7/26/2024, 7:04:00 PM)
After market: 52.31 0 (0%)52.31
+1.32 (+2.59%)
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 Cap9.08B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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 | 21.98 | ||
| Fwd PE | 16.32 | ||
| 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)1.57
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.83% | ||
| ROE | 109.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.07% | ||
| PM (TTM) | 7.32% | ||
| GM | 44.05% | ||
| 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 Turnover1.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.74 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-2.06%
EPS 3Y8.06%
EPS 5Y
EPS Q2Q%
EPS Next Y13.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.35%
Revenue growth 3Y10.24%
Revenue growth 5Y
Sales 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