Fact based stock research
Tempur Sealy (NYSE:TPX)
US88023U1016
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Tempur Sealy stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 5 (worse than 95% compared with investment alternatives), Tempur Sealy (Home Furnishings, USA) shares have lower financial characteristics compared with similar stocks. Shares of Tempur Sealy are low in value (priced high) with a consolidated Value Rank of 10 (worse than 90% of alternatives), and are riskily financed (Safety Rank of 8, which means above-average debt burdens) but show above-average growth (Growth Rank of 55). ...read more
RECOMMENDATION: A Combined Rank of 5, is a sell recommendation based on Tempur Sealy's financial characteristics. As the company Tempur Sealy shows low value with an Obermatt Value Rank of 10 (90% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 55% of comparable companies (Obermatt Growth Rank is 55). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 8 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Tempur Sealy, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Home Furnishings |
| Index | S&P MIDCAP |
| Size class | X-Large |
21-Mar-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Tempur Sealy
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
23 |
|
10 |
|
10 |
|
| GROWTH | ||||||||
| GROWTH | 93 |
|
73 |
|
31 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
1 |
|
5 |
|
8 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
100 |
|
92 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
33 |
|
26 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 5 (worse than 95% compared with investment alternatives), Tempur Sealy (Home Furnishings, USA) shares have lower financial characteristics compared with similar stocks. Shares of Tempur Sealy are low in value (priced high) with a consolidated Value Rank of 10 (worse than 90% of alternatives), and are riskily financed (Safety Rank of 8, which means above-average debt burdens) but show above-average growth (Growth Rank of 55). ...read more
RECOMMENDATION: A Combined Rank of 5, is a sell recommendation based on Tempur Sealy's financial characteristics. As the company Tempur Sealy shows low value with an Obermatt Value Rank of 10 (90% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 55% of comparable companies (Obermatt Growth Rank is 55). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 8 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Tempur Sealy, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
23 |
|
10 |
|
10 |
|
| GROWTH | ||||||||
| GROWTH | 93 |
|
73 |
|
31 |
|
55 |
|
| SAFETY | ||||||||
| SAFETY | 8 |
|
1 |
|
5 |
|
8 |
|
| COMBINED | ||||||||
| COMBINED | 40 |
|
15 |
|
1 |
|
5 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 10 (worse than 90% compared with alternatives), Tempur Sealy shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Tempur Sealy. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 63% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 12 which means that the stock price compared with what market professionals expect for future profits is higher than 88% of comparable companies, indicating a low value concerning Tempur Sealy's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 11 which means that the stock price compared with what market professionals expect for future profit levels is higher than 89% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 1 is also low. Compared with invested capital, the stock price is higher than for 99% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 10, is a sell recommendation based on Tempur Sealy's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Tempur Sealy? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Tempur Sealy only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 46 |
|
17 |
|
11 |
|
12 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 76 |
|
47 |
|
12 |
|
11 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 1 |
|
1 |
|
1 |
|
1 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 61 |
|
57 |
|
65 |
|
63 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 46 |
|
23 |
|
10 |
|
10 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Tempur Sealy shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Tempur Sealy. Profit Growth has a rank of 65 which means that currently professionals expect the company to grow its profits more than 65% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 63, and Stock Returns has a rank of 55 which means that the stock returns have recently been above 55% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 45 (55% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 68 |
|
55 |
|
27 |
|
45 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 60 |
|
78 |
|
56 |
|
65 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
18 |
|
24 |
|
63 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 88 |
|
89 |
|
55 |
|
55 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 93 |
|
73 |
|
31 |
|
55 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 8 (better than 8% compared with alternatives), the company Tempur Sealy has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Tempur Sealy is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Tempur Sealy. Liquidity is at 46, meaning that the company generates less profit to service its debt than 54% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 5, meaning the company has an above-average debt-to-equity ratio. It has more debt than 95% of its competitors. Finally, Refinancing is at a rank of 8 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 92% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 8 (worse than 92% compared with alternatives), Tempur Sealy has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Tempur Sealy because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 35 |
|
4 |
|
3 |
|
5 |
|
| REFINANCING | ||||||||
| REFINANCING | 20 |
|
4 |
|
8 |
|
8 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 50 |
|
34 |
|
38 |
|
46 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 8 |
|
1 |
|
5 |
|
8 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
60 |
|
80 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
82 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
92 |
|
92 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
78 |
|
65 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
100 |
|
92 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Tempur Sealy from March 21, 2024.
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