Tempura Stock Report

Tempur Sealy

        Tumour Sealy is the world's largest bedding provider. They develop, manufacture, market, and distribute bedding products, which they sell globally. Their future growth potential is significant in our existing markets, so they focus on expansion into new markets in order to achieve long-term growth potential while managing the current economic and competitive environment. To accomplish their long-term goals, while generating sufficient cash flow in the current term, Tempur Sealy focus on managing key strategic growth initiatives like: production innovation, new market expansion, marketing and the supply chain. These strategic growth initiatives will be supported by cost synergies realized from the acquisition of Sealy as well as through ongoing cost productivity initiatives.

             As of Monday, September 21, Tempur Sealy has a stock price of $76.85. It was added to the portfolio at a price $26.97, which has yielded a total return of 164%, in an approximately 3 year period. The market cap of the company is 4.76 billion which makes it a significantly biggerr company than rival company Select Comfort Corporation (SCSS), which sits at 1.17 billion. In terms of profitability, Tempur Sealy has a margin of 4.17% and an ROE of 60.12% versus Select Comfort Corporation’s 6.48% and 33.72%, respectively. The company has an EPS of 2.06 vs the industry average of 0.20. It had revenue of 3.08 billion and a net income of 128.30 million in 2014.

The firm currently has a Price to Earnings ratio of 37.36 vs. an industry average of 20.42. This means that the company is overvalued by the market. So, investors would be getting the company at a higher price than compared to the rest of the industry. Its forward P/E is expected to decline to around 20 which means the stock could become cheaper assuming the market continues to value these companies the way it has continued to.

Growth for the company is relatively high and is expected to be at an important positive percentage in the short term, climbing up to 16.65% over the next 5 years. Compared to the industry, it has a very high potential growth. Tempur Sealy provided various growth targets it wants to achieve, thereby expects to dominate growth in the bedding market in the next five financial years. Thus, Tempur Sealy expects to dominate growth by increasing operational efficiency and shareholder value in the mattress and bedding market.