By:
On:
In: Fair company, Stock analysis
Tagged:
With: 0 Comments

Company name Tempur Sealy International Inc
Stock ticker TPX
Live stock price [stckqut]TPX[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Good
EPS growth Poor
P/E growth Fair
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $56.86
Target stock price (averages with growth) $61.2
Target stock price (averages with no growth) $40.17
Target stock price (manual assumptions) $54.91

The following company description is from Google Finance: http://www.google.com/finance?q=tpx

Tempur Sealy International, Inc. is a bedding provider. The Company develops, manufactures and markets mattresses, foundations, pillows and other products. Its brand portfolio includes Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster. It has three segments: Tempur North America, Tempur International and Sealy. Tempur North American operating segment consists of two the United States manufacturing facilities and its North American distribution subsidiaries; Tempur International segment, which consists of its manufacturing facility in Denmark, whose customers include all of its distribution subsidiaries and third party distributors outside the North American operating segment, and the Sealy segment consists of company-owned and operated bedding and component manufacturing facilities located around the world along with distribution subsidiaries and joint ventures. On March 18, 2013, it acquired Sealy Corporation.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Tempur Sealy International Inc as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $48.1

Growth: 0.13

Current EPS (TTM): $1.2

P/E: 40

Future EPS Calc: $2.21

Future Stock Price Calc: $88.43

Target stock price: $54.91

I hope that this makes you a better investor. [/s2If]