TPX - Embedded Expectations Analysis - 2021 01 19
Tempur Sealy International, Inc. (TPX:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) earnings, with a 21.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about sales growth, debt repayment, and their online business capabilitiesSpecifically, management may lack confidence in their ability to sustain growth in net sales, operating cash flow, and North America gross profit margins. Furthermore, they may have concerns about their acquisition of Sealy's distribution rights in the UK, the repayment of debt taken on in the Sealy acquisition, and overtime labor costs. Moreover, management may lack confidence in their ability to initiate a quarterly cash dividend beginning in early 2021, further reduce leverage, and expand their digital capabilities
Tempur Sealy International develops, manufactures, and markets bedding products. The company's portfolio of product brands includes Tempur?, Tempur-Pedic?, Sealy? featuring Posturepedic? Technology, Stearns & Foster? and Comfort Revolution?. The company operates in two segments: North America and International. The company's North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries and licensees located in United States and Canada. The company's International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.