NYSE:TFX

Stock Analysis Report

Executive Summary

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide.


Snowflake Analysis

Solid track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Teleflex's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TFX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.0%

TFX

-9.3%

US Medical Equipment

-10.6%

US Market


1 Year Return

14.5%

TFX

6.2%

US Medical Equipment

5.2%

US Market

Return vs Industry: TFX exceeded the US Medical Equipment industry which returned 10.7% over the past year.

Return vs Market: TFX exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

TFXIndustryMarket
7 Day-9.0%-9.3%-10.6%
30 Day-11.1%-9.4%-8.5%
90 Day-4.6%-5.0%-4.6%
1 Year14.9%14.5%7.1%6.2%7.4%5.2%
3 Year76.1%73.5%60.4%55.9%31.7%23.2%
5 Year189.0%179.4%95.6%74.9%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Teleflex undervalued compared to its fair value and its price relative to the market?

3.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TFX ($345.3) is trading below our estimate of fair value ($347.63)

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


Price To Earnings Ratio

PE vs Industry: TFX is good value based on its PE Ratio (34.5x) compared to the Medical Equipment industry average (45.3x).

PE vs Market: TFX is poor value based on its PE Ratio (34.5x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: TFX is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: TFX is overvalued based on its PB Ratio (5.4x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

How is Teleflex forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TFX's forecast earnings growth (12.5% per year) is above the savings rate (1.7%).

Earnings vs Market: TFX's earnings (12.5% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: TFX's earnings are forecast to grow, but not significantly.

Revenue vs Market: TFX's revenue (6.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TFX's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TFX's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Teleflex performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TFX has high quality earnings.

Growing Profit Margin: TFX's current net profit margins (17.8%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: TFX's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: TFX's earnings growth over the past year (135.2%) exceeds its 5-year average (7.3% per year).

Earnings vs Industry: TFX earnings growth over the past year (135.2%) exceeded the Medical Equipment industry 1.4%.


Return on Equity

High ROE: TFX's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Teleflex's financial position?


Financial Position Analysis

Short Term Liabilities: TFX's short term assets ($1.3B) exceed its short term liabilities ($563.1M).

Long Term Liabilities: TFX's short term assets ($1.3B) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: TFX's debt to equity ratio (64.1%) is considered high.

Reducing Debt: TFX's debt to equity ratio has increased from 55.9% to 64.1% over the past 5 years.

Debt Coverage: TFX's debt is well covered by operating cash flow (23%).

Interest Coverage: TFX's interest payments on its debt are well covered by EBIT (6.3x coverage).


Balance Sheet

Inventory Level: TFX has a low level of unsold assets or inventory.

Debt Coverage by Assets: TFX's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

What is Teleflex's current dividend yield, its reliability and sustainability?

0.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TFX's dividend (0.39%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: TFX's dividend (0.39%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: TFX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TFX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TFX'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?

6.6yrs

Average management tenure


CEO

Liam Kelly (52yo)

2.1yrs

Tenure

US$6,108,486

Compensation

Mr. Liam J. Kelly has been Chief Executive Officer at Teleflex Incorporated since January 01, 2018 and has been its Director since May 4, 2018. He serves as Director of Colfax Corporation since January 1,  ...


CEO Compensation Analysis

Compensation vs Market: Liam's total compensation ($USD6.11M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Liam Kelly
President2.1yrsUS$6.11m0.020% $3.2m
Thomas Powell
Executive VP & CFO7.9yrsUS$2.89m0.010% $1.7m
James Leyden
Corporate VP6yrsUS$1.45m0.025% $4.1m
Cameron Hicks
Corporate VP of Global Human Resources & Employee Communications6.8yrsUS$1.13m0.011% $1.7m
John Deren
VP & Chief Accounting Officer2.8yrsno data0.0029% $467.5k
Timothy Duffy
VP & Chief Information Officer7.3yrsno datano data
Jacob Elguicze
Treasurer & VP of Investor Relations0yrsno datano data
Gwen Chapman
Chief Compliance Officer & VP0yrsno datano data
Gwendolyn Watanabe
Vice President of Global Corporate Development6.6yrsno datano data
David Amerson
President & GM of Interventional Urology0yrsno datano data

6.6yrs

Average Tenure

52yo

Average Age

Experienced Management: TFX's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Liam Kelly
President2.1yrsUS$6.11m0.020% $3.2m
George Babich
Lead Director0yrsUS$278.45k0.022% $3.5m
John Heinmiller
Independent Director1.1yrsno data0.0027% $432.3k
Gretchen Frances Haggerty
Independent Director3.4yrsUS$239.40k0.0046% $742.8k
Richard Packer
Independent Director2.8yrsUS$239.40k0.0043% $685.2k
Benson Smith
Chairman of the Board9.1yrsUS$318.31k0.10% $16.5m
Stuart Randle
Independent Director10.8yrsUS$259.40k0.0047% $749.2k
Andrew Krakauer
Independent Director2.1yrsUS$372.08k0.0032% $518.7k
Stephen Klasko
Independent Director11.8yrsUS$236.40k0.019% $3.0m
Candace Duncan
Independent Director4.8yrsUS$246.06k0.0044% $707.6k

3.4yrs

Average Tenure

64yo

Average Age

Experienced Board: TFX's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Teleflex Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Teleflex Incorporated
  • Ticker: TFX
  • Exchange: NYSE
  • Founded: 1943
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$16.009b
  • Shares outstanding: 46.36m
  • Website: https://www.teleflex.com

Number of Employees


Location

  • Teleflex Incorporated
  • 550 East Swedesford Road
  • Suite 400
  • Wayne
  • Pennsylvania
  • 19087
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TFXNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1968
TBHDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1968
T1FX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

Biography

Teleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. It offers vascular access products that comprise Arrow branded catheters and related devices, including catheter positioning systems for use in the administration of intravenous medications and other therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site; and devices for treating coronary and peripheral vascular disease. The company also provides interventional access products that are used in dialysis, oncology, and critical care therapies; and cardiac care products, such as diagnostic and intra-aortic balloon catheters, and capital equipment. In addition, it offers anesthesia products, such as pain management products for use in surgical and obstetric procedures; airway management products and related devices for use in pre-hospital emergency and hospital settings; and other pre-hospital emergency products. Further, the company offers surgical products, including Weck Ligation Systems, Weck EFx Fascial Closure Systems, Percutaneous Surgical Systems, Weck Vista bladeless access ports, Deknatel sutures, and Pilling and Kmedic surgical instruments; products for use in acute care settings for diagnostic and therapeutic procedures, and in general and specialty surgical applications; and single-use respiratory, urology, and interventional urology products. Additionally, it provides devices and instruments for other medical device manufacturers, such as custom-engineered extrusions, diagnostic and interventional catheters, balloon sheath/dilator sets and kits, sutures, performance fibers, and bioresorbable resins and fibers. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. Teleflex Incorporated was founded in 1943 and is headquartered in Wayne, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:36
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.