TPX Stock Intrinsic Value – Tempur Sealy: Underpriced or Overvalued, Depending on Your Growth Perspective

January 6, 2024

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Tempur Sealy International ($NYSE:TPX) Inc. is a leading global bedding provider, known for their innovative products and technology. Through their market-leading brands such as Tempur-Pedic, Sealy, Stearns & Foster, and Tobey, they offer a wide range of premium mattress and sleep products that help people sleep better. Their mission is to be the world’s most admired bedding company, and they continue to strive for excellence in all aspects of their business. If viewed as a growth company, Tempur Sealy can be seen as underpriced. While their stock price has declined since the pandemic, the company is still doing well. They have a strong balance sheet and are well-positioned for growth in the long term.

In addition, Tempur Sealy has been expanding its presence in the direct-to-consumer market, which is expected to drive further growth in the future. For investors looking for growth opportunities, Tempur Sealy International provides an attractive option. The company has a strong product portfolio, a well-established brand image, and a strong balance sheet. With their focus on innovation and customer service, they remain well positioned to take advantage of future growth opportunities.

Market Price

Tempur Sealy International Inc. (TEMPUR SEALY) is a leading global bedding provider that designs, manufactures, markets and distributes bedding products and accessories. On Friday, the company’s stock opened at $48.0 and closed at $48.7, up by 1.5% from its last closing price of 47.9. This raises the question of whether investors are seeing the company as underpriced or overvalued, depending on their growth perspective. Many investors think the company is underpriced, as it has seen substantial revenue growth and has a strong presence in its home market of the United States.

In addition, its international presence has been increasing, with notable expansions into Canada, China, and other regions. This indicates that the company has potential for further growth in these areas. On the other hand, some investors believe the company is overvalued due to its declining stock prices over the last year. While the recent rise in stock prices can be attributed to strong revenue growth, some analysts question whether this growth is sustainable in the long term. Moreover, the increasing competition in the bedding industry could put additional pressure on TEMPUR SEALY’s market share and profitability. Ultimately, it is up to investors to decide whether TEMPUR SEALY is underpriced or overvalued based on their own growth perspective and assessment of the company’s prospects. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for TPX. More…

    Total Revenues Net Income Net Margin
    4.94k 392.7 7.9%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for TPX. More…

    Operations Investing Financing
    574.5 -243.3 -348.2
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • 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 4.32k 1.24
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for TPX are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    12.3% 14.5% 12.8%
    FCF Margin ROE ROA
    6.7% 223.8% 8.7%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – TPX Stock Intrinsic Value

    At GoodWhale, we have studied the fundamental data of TEMPUR SEALY INTERNATIONAL and come to the conclusion that its intrinsic value is around $40.3. This figure was calculated using our proprietary Valuation Line. However, TEMPUR SEALY INTERNATIONAL shares are currently trading at $48.7, indicating that it is overvalued by 20.9%. Our advice would be to exercise caution before investing in this stock. More…

  • Star Chart Analysis
  • Valuation Analysis




  • 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

    Tempur Sealy International is a leading bedding manufacturer with a strong presence in the US mattress market. Recent financial analysis has shown that the company’s stock is likely undervalued when viewed as a growth company. With a low debt-to-equity ratio, the company is in a strong financial position to continue growing.

    Furthermore, its extensive product portfolio and focus on customer satisfaction should continue to drive revenues. Overall, Tempur Sealy appears to be an attractive investment option for those looking for potential growth opportunities.

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