NYSE:TPX

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Executive Summary

Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products in the United States, Canada, and internationally.


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Tempur Sealy International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TPX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.2%

TPX

9.3%

US Consumer Durables

2.0%

US Market


1 Year Return

-5.9%

TPX

8.2%

US Consumer Durables

7.1%

US Market

Return vs Industry: TPX underperformed the US Consumer Durables industry which returned -0.7% over the past year.

Return vs Market: TPX underperformed the US Market which returned 3.7% over the past year.


Shareholder returns

TPXIndustryMarket
7 Day10.2%9.3%2.0%
30 Day31.6%23.8%6.0%
90 Day-24.6%-5.2%-0.05%
1 Year-5.9%-5.9%9.5%8.2%9.5%7.1%
3 Year29.9%29.9%-1.0%-5.5%30.7%22.1%
5 Year-0.1%-0.1%10.4%3.8%55.6%38.0%

Price Volatility Vs. Market

How volatile is Tempur Sealy International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Tempur Sealy International undervalued compared to its fair value and its price relative to the market?

9.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPX ($60.28) is trading below our estimate of fair value ($66.36)

Significantly Below Fair Value: TPX is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TPX is poor value based on its PE Ratio (14.6x) compared to the Consumer Durables industry average (9.6x).

PE vs Market: TPX is good value based on its PE Ratio (14.6x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: TPX is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: TPX is overvalued based on its PB Ratio (15.6x) compared to the US Consumer Durables industry average (1.2x).


Next Steps

Future Growth

How is Tempur Sealy International forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TPX's forecast earnings growth (20.3% per year) is above the savings rate (2.2%).

Earnings vs Market: TPX's earnings (20.3% per year) are forecast to grow slower than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TPX's revenue (5.5% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: TPX's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TPX's Return on Equity is forecast to be very high in 3 years time (93.4%).


Next Steps

Past Performance

How has Tempur Sealy International performed over the past 5 years?

10.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPX has high quality earnings.

Growing Profit Margin: TPX's current net profit margins (6.9%) are higher than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: TPX's earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: TPX's earnings growth over the past year (83.8%) exceeds its 5-year average (10% per year).

Earnings vs Industry: TPX earnings growth over the past year (83.8%) exceeded the Consumer Durables industry 10.1%.


Return on Equity

High ROE: Whilst TPX's Return on Equity (106.91%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Tempur Sealy International's financial position?


Financial Position Analysis

Short Term Liabilities: TPX's short term assets ($1.0B) exceed its short term liabilities ($750.4M).

Long Term Liabilities: TPX's short term assets ($1.0B) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: TPX's debt to equity ratio (893.9%) is considered high.

Reducing Debt: TPX's debt to equity ratio has increased from 760.8% to 893.9% over the past 5 years.

Debt Coverage: TPX's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: TPX's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Tempur Sealy International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TPX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TPX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TPX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TPX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TPX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TPX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Scott Thompson (60yo)

4.67yrs

Tenure

US$14,277,857

Compensation

Mr. Scott L. Thompson has been the Chairman, Chief Executive Officer and President of Tempur Sealy International Inc. since September 8, 2015. Mr. Thompson served as the Chief Executive Officer and Preside ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD14.28M) is above average for companies of similar size in the US market ($USD6.00M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Thompson
Chairman of the Board4.67yrsUS$14.28m0.11% $3.4m
Bhaskar Rao
Executive VP & CFO2.58yrsUS$2.56m0.056% $1.7m
Scott Vollet
Executive Vice President of Global Operationsno dataUS$2.54m0.048% $1.5m
David Montgomery
Executive Vice President of Global Business Strategy & Developmentno dataUS$2.66m0.49% $15.2m
Aubrey Moore
Director of Investor Relationsno datano datano data
Thomas Murray
Executive VP & Chief Marketing Officer of Marketing2yrsno data0.0086% $268.7k
Steve Rusing
Executive VP & President of U.S. Sales0.33yrno data0.021% $649.3k
Carmen Dabiero
Senior Vice President of Human Resourcesno datano datano data
H. Buster
Executive VP & President U.S.2.67yrsno data0.071% $2.2m

2.6yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TPX's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Thompson
Chairman of the Board4.67yrsUS$14.28m0.11% $3.4m
Richard Neu
Lead Independent Director4yrsUS$255.00k0.058% $1.8m
Evelyn Dilsaver
Independent Director10.42yrsUS$237.50k0.040% $1.2m
John Heil
Independent Director12.17yrsUS$232.50k0.064% $2.0m
Robert Trussell
Vice Chairman of the Board14.08yrsUS$220.00k0.025% $765.5k
Jon Luther
Independent Director5yrsUS$235.00k0.021% $664.8k
Arik Ruchim
Independent Director2yrsno datano data
Cathy Gates
Independent Director1.83yrsUS$220.00k0.013% $398.9k

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: TPX's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TPX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tempur Sealy International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tempur Sealy International, Inc.
  • Ticker: TPX
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$3.107b
  • Shares outstanding: 51.54m
  • Website: https://www.tempursealy.com

Number of Employees


Location

  • Tempur Sealy International, Inc.
  • 1000 Tempur Way
  • Lexington
  • Kentucky
  • 40511
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TPXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
TPDDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003

Biography

Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products in the United States, Canada, and internationally. It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows, mattress covers, sheets, cushions, and various other accessories and comfort products under the TEMPUR, Tempur-Pedic, Sealy, Comfort Revolution, and Stearns & Foster brands. The company sells its products through third party retailers, including third party distribution, hospitality, and healthcare; and company-owned stores, e-commerce, and call centers, as well as offers Cocoon by Sealy branded products through online. It also operates a portfolio of retail brands, including Tempur-Pedic retail stores, Sleep Outfitters, Sleep Solutions Outlet, SOVA, and other retail brands. In addition, the company is involved in licensing its Sealy, and Stearns & Foster brands, technology, and trademarks to other manufacturers. Tempur Sealy International, Inc. was founded in 1989 and is headquartered in Lexington, Kentucky. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 02:16
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.