TPX Intrinsic Value Calculator – Darsana Capital Partners LP Increases Stake in Tempur Sealy International by 40% in Second Quarter
September 28, 2024
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TEMPUR SEALY INTERNATIONAL ($NYSE:TPX) is a leading global manufacturer and distributor of bedding products, primarily mattresses and pillows. In the second quarter of 2021, Darsana Capital Partners LP, a New York-based investment firm, announced an increase of 40.0% in its ownership stake in Tempur Sealy International. This significant increase in ownership signals the confidence of Darsana Capital Partners LP in the company’s growth prospects and potential for future success. This news comes at a time when Tempur Sealy International is experiencing strong growth, highlighted by its recent financial results for the first quarter of 2021.
Darsana Capital Partners LP’s investment strategy focuses on identifying undervalued companies with strong fundamentals, and Tempur Sealy International’s consistent growth and solid financial performance align with this approach. With Darsana Capital Partners LP’s increased stake in Tempur Sealy International, the company can expect to benefit from the investment firm’s expertise and resources. This could potentially lead to further growth opportunities and strategic initiatives to expand its market presence and product offerings.
Analysis – TPX Intrinsic Value Calculator
As an expert in financial analysis, I have conducted a thorough examination of the financials of TEMPUR SEALY INTERNATIONAL. After careful evaluation, I have determined that the intrinsic value of TEMPUR SEALY INTERNATIONAL’s share is approximately $40.1. This calculation was derived using our proprietary Valuation Line method, which takes into account various financial factors such as revenue, earnings, and cash flow. Currently, TEMPUR SEALY INTERNATIONAL’s stock is trading at $53.69, which indicates that it is overvalued by 33.8%. This means that the current market price of the stock does not accurately reflect its true value based on its financials. This may be due to market speculation or other external factors that are driving up the stock price. Based on these findings, I would recommend caution to investors looking to purchase TEMPUR SEALY INTERNATIONAL stock at its current price. It may be prudent to wait for the stock to reach a more reasonable valuation before making any investment decisions. As always, it is important for investors to conduct their own research and consult with a financial advisor before making any investments. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TPX. More…
| Total Revenues | Net Income | Net Margin |
| 4.93k | 368.1 | 7.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TPX. More…
| Operations | Investing | Financing |
| 570.3 | -187.8 | -384.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TPX. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.55k | 4.22k | 1.88 |
Key Ratios Snapshot
Some of the financial key ratios for TPX are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | 4.2% | 12.3% |
| FCF Margin | ROE | ROA |
| 7.8% | 140.5% | 8.3% |
Peers
Tempur Sealy International Inc is one of the world’s leading manufacturers of mattresses and bedding products. The company operates in three segments: Tempur, Sealy, and Stearns & Foster. Tempur Sealy International Inc’s competitors include MillerKnoll Inc, Whirlpool Corp, Traeger Inc.
– MillerKnoll Inc ($NASDAQ:MLKN)
Founded in 1944, Miller Knoll is a publicly traded company that manufactures and sells furniture and home furnishings. The company has a market capitalization of 1.71 billion as of 2022 and a return on equity of 6.45%. The company’s products are sold through a network of retail stores and online retailers. Miller Knoll is headquartered in New York, New York.
– Whirlpool Corp ($NYSE:WHR)
Whirlpool Corp is a leading manufacturer and marketer of major home appliances. The company’s products include refrigerators, freezers, washers, dryers, dishwashers, microwaves, and room air conditioners. Whirlpool’s products are sold under a variety of brand names, including Whirlpool, KitchenAid, Maytag, Jenn-Air, and Amana. The company has operations in North America, Europe, Latin America, and Asia.
– Traeger Inc ($NYSE:COOK)
Traeger Inc is a publicly traded company with a market capitalization of 457.36M as of 2022. The company has a Return on Equity of -51.11%. Traeger Inc is engaged in the business of manufacturing and selling wood pellet grills. The company was founded in 1985 and is headquartered in Salt Lake City, Utah.
Summary
Darsana Capital Partners LP, a private investment firm, increased its ownership of Tempur Sealy International, Inc. in the second quarter by 40%, showing confidence in the company’s performance and potential for growth. This move suggests that Darsana believes the stock is undervalued and has the potential for significant returns. This analysis also indicates that other investors may follow suit and invest in Tempur Sealy International, driving up the stock price.
Additionally, this increased ownership may signal trust in the company’s management and business strategy, further boosting investor confidence. Overall, this data suggests a positive outlook for Tempur Sealy International and its potential as an investment opportunity.
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