TPX

Tempur Sealy International Inc

Consumer


Presented:07/21/2022
Price:$25.43
Cap:$4.46B
Current Price:$50.47
Cap:$8.76B

Presented

Date07/21/2022
Price$25.43
Market Cap$4.46B
Ent Value$8.37B
P/E Ratio8.11x
Book ValueN/A
Div Yield1.49%
Shares O/S175.54M
Ave Daily Vol2,745,757
Short Int10.06%

Current

Price$50.47
Market Cap$8.76B
Tempur Sealy International, Inc. develops, manufactures, markets and distributes bedding products. It operates through North America and International segments. The North America segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in the U.S. and Canada. The International segment consists of Tempur and Sealy manufacturing and distribution subsidiaries, joint ventures and licensees located in Europe, Asia-Pacific and Latin America. Its products include mattresses, adjustable bases, pillows and other sleep and relaxation products. The firm's brands include Tempur, Tempur-Pedic, Sealy featuring Posturepedic Technology and Stearns & Foster. The company was founded by Robert B. Trussell, Jr. in 1992 and is headquartered in Lexington, KY.

Publicly traded companies mentioned herein: Tempur Sealy International Inc (TPX)

Highlights

The presenter is long shares of Tempur Sealy International Inc (TPX), an American manufacturer of mattresses and bedding products. TPX has emerged as the dominant player in the bedding industry, currently lapping its main competitor Serta Simmons in terms of overall market share due to a few accretive deals over the pandemic that allowed it to strengthen its manufacturing and distribution in a strong pricing environment. Now, TPX is able to sell mattresses to consumers along the entire price curve and should be able to sustain market share gains. The presenter argues that TPX’s valuation is too low and applies a 12.5x earnings multiple to $4 of 2024 EPS for a price target of $50 per share (100% upside) in the next 18 months.

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Idea Discussion

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