Tempur Sealy International Inc

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TPX : NYSE : Consumer Goods
$77.77 -0.84 | -1.10%
Today's Range: 77.60 - 79.26
Avg. Daily Volume: 1,478,700
08/31/16 - 12:25 PM ET

Financial Analysis


TEMPUR SEALY INTL INC's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. TEMPUR SEALY INTL INC has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 37.67% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)804.4764.4
EBITDA ($mil)110.669.7
EBIT ($mil)92.250.9
Net Income ($mil)21.321.2


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)137.935.4
Total Assets ($mil)2719.42716.9
Total Debt ($mil)1676.81576.0
Equity ($mil)157.5252.7


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin44.1741.38
EBITDA Margin13.749.11
Operating Margin11.466.66
Sales Turnover1.171.13
Return on Assets3.34.72
Return on Equity57.0150.77
Debt Q2 FY16 Q2 FY15
Current Ratio1.271.41
Debt/Capital0.910.86
Interest Expense23.120.5
Interest Coverage3.992.48


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)58.4161.89
Div / share0.00.0
EPS0.350.34
Book value / share2.74.08
Institutional Own % n/a n/a
Avg Daily Volume1512275.01376566.0

Valuation


BUY. TEMPUR SEALY INTL INC's P/E ratio indicates a significant premium compared to an average of 33.21 for the Household Durables industry and a significant premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 29.28 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 3.19. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, TEMPUR SEALY INTL INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TPX 54.83 Peers 33.21   TPX 17.08 Peers 17.84

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

TPX is trading at a significant premium to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TPX is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TPX 16.00 Peers 23.61   TPX 0.21 Peers 0.89

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

TPX is trading at a discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

TPX trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TPX 29.28 Peers 3.19   TPX -30.44 Peers 73.64

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TPX is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TPX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TPX 1.45 Peers 1.39   TPX 3.11 Peers 16.98

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TPX is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

TPX significantly trails its peers on the basis of sales growth

 

 

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