Tempur Sealy International Inc.

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TPX : NYSE : Consumer Durables
$50.13 -4.84 | -8.8%
Today's Range: 48.84 - 52.27
Avg. Daily Volume: 770300.0
02/22/18 - 4:01 PM ET

Financial Analysis

TEMPUR SEALY INTL INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. TEMPUR SEALY INTL INC has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 44.34% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)724.8832.4
EBITDA ($mil)109.8141.2
EBIT ($mil)88.8122.9
Net Income ($mil)44.677.8

Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)41.889.0
Total Assets ($mil)2735.32746.2
Total Debt ($mil)1753.01685.1
Equity ($mil)84.2151.3

Profitability Q3 FY17 Q3 FY16
Gross Profit Margin46.1145.7
EBITDA Margin15.1416.96
Operating Margin12.2514.76
Sales Turnover1.051.14
Return on Assets6.084.63
Return on Equity197.6284.2
Debt Q3 FY17 Q3 FY16
Current Ratio1.081.26
Interest Expense32.020.5
Interest Coverage2.786.0

Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)54.1857.9
Div / share0.00.0
Book value / share1.552.61
Institutional Own % n/a n/a
Avg Daily Volume803978.0981855.0


BUY. This stock's P/E ratio indicates a premium compared to an average of 18.37 for the Household Durables industry and a discount compared to the S&P 500 average of 25.51. For additional comparison, its price-to-book ratio of 36.14 indicates a significant premium versus the S&P 500 average of 3.26 and a significant premium versus the industry average of 2.82. 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 premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TPX 18.72 Peers 18.37   TPX 11.50 Peers 12.56

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

TPX is trading at a valuation on par with 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 14.92 Peers 13.78   TPX NM Peers 0.45

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 significant 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 36.14 Peers 2.82   TPX 41.50 Peers 699.17

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TPX 1.06 Peers 1.18   TPX -7.99 Peers 13.16

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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