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
Debt/Capital0.990.91
Interest Expense22.123.1
Interest Coverage2.144.03


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)53.958.41
Div / share0.00.0
EPS0.450.35
Book value / share0.42.7
Institutional Own % n/a n/a
Avg Daily Volume1189153.01452934.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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