Tempur Sealy International Inc

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TPX : NYSE : Consumer Goods
$45.95 | %
Today's Range: 45.27 - 46.76
Avg. Daily Volume: 1808100.0
02/24/17 - 4:02 PM ET

Financial Analysis


TEMPUR SEALY INTL INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. TEMPUR SEALY INTL INC has weak liquidity. Currently, the Quick Ratio is 0.75 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 105.23% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)769.5767.3
EBITDA ($mil)117.5116.5
EBIT ($mil)98.5100.0
Net Income ($mil)63.4-11.3


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)65.7153.9
Total Assets ($mil)2702.62655.5
Total Debt ($mil)1888.11454.8
Equity ($mil)-15.2290.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin43.9842.96
EBITDA Margin15.2615.18
Operating Margin12.813.03
Sales Turnover1.161.19
Return on Assets7.472.76
Return on Equity0.025.32
Debt Q4 FY16 Q4 FY15
Current Ratio1.231.13
Debt/Capital1.010.83
Interest Expense20.222.0
Interest Coverage4.884.55


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)54.462.4
Div / share0.00.0
EPS1.12-0.18
Book value / share-0.284.65
Institutional Own % n/a n/a
Avg Daily Volume1785004.01476196.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 20.69 for the Household Durables industry and a significant discount compared to the S&P 500 average of 26.53. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, TEMPUR SEALY INTL INC proves to trade 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 13.65 Peers 20.69   TPX 15.34 Peers 16.13

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 14.00 Peers 27.54   TPX NM Peers 1.24

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 significant discount 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 NM Peers 2.49   TPX 189.83 Peers 11.76

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

TPX's P/B is negative making this valuation measure meaningless.

 

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 0.81 Peers 1.19   TPX -0.76 Peers 22.97

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 significant 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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