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
Debt/Capital0.950.92
Interest Expense32.020.5
Interest Coverage2.786.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)54.1857.9
Div / share0.00.0
EPS0.811.32
Book value / share1.552.61
Institutional Own % n/a n/a
Avg Daily Volume803978.0981855.0

Valuation


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.


Price/Earnings
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.

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

 
Price/Book
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.

 
Price/Sales
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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