Tempur Sealy International Inc

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TPX : NYSE : Consumer Goods
$61.27 | %
Today's Range: 60.6 - 61.71
Avg. Daily Volume: 1151300.0
08/18/17 - 4:02 PM ET

Financial Analysis

TEMPUR SEALY INTL INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. TEMPUR SEALY INTL INC has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 86.15% 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 FY17 Q2 FY16
Net Sales ($mil)659.3804.4
EBITDA ($mil)67.4111.6
EBIT ($mil)47.393.2
Net Income ($mil)24.521.3

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)38.5137.9
Total Assets ($mil)2711.22719.4
Total Debt ($mil)1861.61676.8
Equity ($mil)21.8157.5

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin43.7944.17
EBITDA Margin10.2213.87
Operating Margin7.1711.59
Sales Turnover1.11.17
Return on Assets7.363.3
Return on Equity915.5957.01
Debt Q2 FY17 Q2 FY16
Current Ratio1.21.27
Interest Expense22.123.1
Interest Coverage2.144.03

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)53.958.41
Div / share0.00.0
Book value / share0.42.7
Institutional Own % n/a n/a
Avg Daily Volume1189153.01452934.0


HOLD. The current P/E ratio indicates a significant discount compared to an average of 30.93 for the Household Durables industry and a discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 146.44 indicates a significant premium versus the S&P 500 average of 3.03 and a significant premium versus the industry average of 4.68. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. The valuation analysis reveals that, TEMPUR SEALY INTL INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TPX 16.87 Peers 30.93   TPX 16.69 Peers 15.61

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

TPX is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
TPX 16.68 Peers 16.28   TPX NM Peers 0.90

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

TPX is trading at a premium to its peers.


Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TPX 146.44 Peers 4.68   TPX 143.75 Peers 27.97

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.


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

TPX is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TPX 1.07 Peers 1.25   TPX -5.97 Peers 15.65

Discount. 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 discount to 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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