Tempur Sealy International, Inc.
Tempur Sealy International, Inc. Fundamental Analysis
Tempur Sealy International, Inc. (TPX) shows weak financial fundamentals with a PE ratio of 26.54, profit margin of 6.79%, and ROE of 17.26%. The company generates $7.6B in annual revenue with weak year-over-year growth of 0.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TPX's fundamental strength across five key dimensions:
Efficiency Score
WeakTPX struggles to generate sufficient returns from assets.
Valuation Score
ModerateTPX shows balanced valuation metrics.
Growth Score
WeakTPX faces weak or negative growth trends.
Financial Health Score
ModerateTPX shows balanced financial health with some risks.
Profitability Score
ModerateTPX maintains healthy but balanced margins.
Key Financial Metrics
Is TPX Expensive or Cheap?
P/E Ratio
TPX trades at 26.54 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TPX's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Tempur Sealy International, Inc. at 4.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.48 times EBITDA. This signals the market has high growth expectations.
How Well Does TPX Make Money?
Net Profit Margin
For every $100 in sales, Tempur Sealy International, Inc. keeps $6.79 as profit after all expenses.
Operating Margin
Core operations generate 12.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.26 in profit for every $100 of shareholder equity.
ROA
Tempur Sealy International, Inc. generates $4.52 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tempur Sealy International, Inc. produces operating cash flow of $929.26M, showing steady but balanced cash generation.
Free Cash Flow
Tempur Sealy International, Inc. produces free cash flow of $728.23M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.50 in free cash annually.
FCF Yield
TPX converts 5.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.54
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TPX Stacks Against Its Sector Peers
| Metric | TPX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.54 | 23.70 | Worse (Expensive) |
| ROE | 17.26% | 1185.00% | Weak |
| Net Margin | 6.79% | 2505.00% | Weak |
| Debt/Equity | 0.67 | 0.77 | Neutral |
| Current Ratio | 0.78 | 2.86 | Weak Liquidity |
| ROA | 4.52% | -8133.00% (disorted) | Weak |
TPX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Tempur Sealy International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.51%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
31.87%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
21.85%
Industry Style: Cyclical, Growth, Discretionary
High Growth