TPX

Tempur Sealy International Inc

Consumer


Presented:06/29/2016
Price:$57.06
Cap:$3.57B
Current Price:$50.47
Cap:$8.76B

Presented

Date06/29/2016
Price$57.06
Market Cap$3.57B
Ent Value$5.25B
P/E Ratio39.9x
Book Value$4.14
Div Yield0%
Shares O/S62.60M
Ave Daily Vol1,513,703
Short Int24.63%

Current

Price$50.47
Market Cap$8.76B
Tempur Sealy International, Inc. develops, manufactures and markets mattresses, foundations, pillows and other products. The company's brand portfolio includes many of the recognized brands in the industry, including Tempur, Tempur-Pedic, Sealy, Sealy Posturepedic, Optimum and Stearns & Foster. The company operates in three business segments: Tempur North America, Tempur International and Sealy. The Tempur North America segment consists of two U.S. manufacturing facilities in Virginia and New Mexico and Tempur North America distribution subsidiaries. The Tempur International segment consists of manufacturing facility in Denmark, whose customers include all of distribution subsidiaries and third party distributors outside Tempur North America and Sealy segments. The Sealy segment consists of company-owned and operated bedding and component manufacturing facilities located around the world, along with distribution subsidiaries, joint ventures, and licensees. Tempur Sealy International was founded by Robert B. Trussell, Jr. in 1992 and is headquartered in Lexington, KY.

Publicly traded companies mentioned herein: Tempur Sealy International (TPX), Mattress Firm (MFRM) and Select Comfort (SSCS).

Highlights

The presenter believes that Tempur Sealy faces numerous risks and issues beyond the already concerning bed-in-a-box trend led by various startup competitors, most notably Casper. He concedes that the current set up for a short is less than ideal given the continued high short interest in the stock and renewed focus on the company’s Europe exposure, but that may not matter given the materiality of the issues involved. 

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Idea Discussion

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