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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Teleflex Incorporated (XNYS:TFX) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
TFX
Name:
TELEFLEX INCORPORATED (XNYS:TFX)
Sector:
48.91M
Industry:
Medical Instruments & Supplies
CEO:
Mr. Liam Kelly
Total Employees:
14,000
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -3999.25% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF TELEFLEX INCORPORATED(TFX) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL INSTRUMENTS & SUPPLIES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
222.77
One Month Price Target:
$224.13
Six Month Price Target :
$230.94
Likely Price in One Year's Time:
Ticker:
$239.1
Likely Trading Range Today Under (Normal Volatility)
$221.81
Price Upper limit ($) :
$223.54
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$212.23
This week:
$199.21
This month :
$175.65
Other Primary facts
Market Cap:
10.40B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
46.91M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.57%
-12.97%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$271.73
$249.69
$173.81
$195.85
Medium risk (<10%) entry points
Buy Call
Sell Call
$242.51
Buy Put:
Sell Put:
$237.81
$202.97
$207.73
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
TFX
Sharpe Ratio:
-2.21%
Comparison:
TFX, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -237.92% lower than the industry
& is -196.89% lower than the market/S&P 500 average
Average Returns/Yield of
TFX
Daily returns:
-0.04%
Weekly returns:
-0.21%
Monthly returns:
-0.83%
Yearly returns:
14.68%
Comparison of returns:
Average annual returns/yield (last 3 years) is -167.94% below industry average
Classification:
TFX, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.06
Statistical test of Returns:
TFX has yielded a lower return than the market, the results are statistically significant
Volatility (measured by Standard Deviation)
Daily Volatility:
2.28%
Weekly Volatility:
5.10%
Monthly Volatility:
10.21%
Yearly Volatility:
35.37%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.33%
Volatility in last five trading days has been -41.84% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.73%
Weekly VaR:
-10.58%
Monthly VaR:
-21.15%
How Much Can the price of
TFX
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-73.28%
This translates to price declining to:
$180.02
This translates to price declining to:
$59.53
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
TFX is a 49.30% riskier investment compared to the market/S&P 500 & is 27.90% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -21.37% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
TFX
Beta in relation to market/S&P 500--1.09
Expected beta in 1 year's time:
0.764
Expected beta in 3 year's time:
1.08
Unlevered (debt free) Beta:
0.768
Beta in relation to Nasdaq (XNAS):
0.716
Beta in relation to all global stocks::
0.69
Beta Comparison & Analysis
Beta of competitors/peers::
0.849
Beta is 28.58% higher than peers
Average Industry Beta:
0.989
Beta is 10.28% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
10.69%
Sustainable growth rate is -27.26% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.206
Alpha is -533.11% below industry average alpha yield
Alpha is -1311% below the market average
Analysis of Cost of Capital of
TFX
Equity cost of capital:
0.106
Equity cost of capital is 7.02% above industry mean WACC
Unlevered (without debt) cost of capital:
7.48%
Before-tax cost of debt:
2.58%
After-tax cost of debt:
2.04%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.04%
WACC is -6.28% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$60.06
Revenue growth rate per share of (3Y):
2.75
Annual revenue growth rate is -74.94% below industry average
EPS:
$10.28
Expected Annual growth rate of EPS (3Y):
0.79%
Expected future EPS growth rate is -93.13% lower than the Medical Instruments & Supplies industry
Free cash flow (FCF) per share:
$11.06
Balance sheet equity growth per share: 0.63%
Equity growth rate per share is 141.72% higher than the industry
Debt per share
$39.45
EBITDA per share
$18.16
Valuation Analysis Today of
TFX
P/E Ratio:
20.71
P/E Ratio of Competitors/Peers:
14.75
P/E ratio is 40.46% higher than main peers & is -58.48% lower than the industry
Stock price/value with industry average P/E ratio: $512.87
TFX is -56.56% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $23.00
Present value of the expected future dividends only: $12.80
P/S (Price to Sales ratio):
3.71
Price to sales ratio is -49.99% below the industry mean
P/B (Price to book value ratio):
2.75
Price to free cash flow: 20.15
-
Net income growth rate (3Y):
137.56%
Net income growth rate is -230.18% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 3.27%
Dividend yeild: 0.61%
Previous Dividend: $0.34
Previous adjusted dividend: $0.34
Previous Dividend: $1.36
-
-
Average dividend payment (long-term): $0.34
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 15/08/2022
Expected next dividend declaration date: 08/01/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 16/05/2022
Previous dividend declaration date: 05/02/2022
Dividend History:
2022-05-13--$0.34
2021-11-12--$0.34
2021-05-13--$0.34
2022-03-04--$0.34
2021-08-13--$0.34
2021-03-04--$0.34
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
48.75%
Net debt to equity ratio:
39.35%
Debt to assets ratio:
26.92%
Net debt to assets ratio:
21.73%
Debt-to-asset ratio is -25.00% below industry average
Ability to repay debt:
Interest coverage ratio:
16.84
Interest coverage ratio is -76.26% less than industry average
Looking forward:
Debt growth rate:
-23.33%
Annual debt growth is -121% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.65
Statistical significance of correlation:
TFX has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.505
Stock price is 28.75% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.505
Correlation of price movement with Nasdaq (^IXIC):
-0.011
Covariance of price movement with the market:
-0.014
Kurtosis
5.353
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.171
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
TFX
Gross Profit Margin Ratio:
220%
Operating Profit Margin Ratio:
22.30%
Operating profit margin is 66.57% higher than the industry
Net Profit Margin Ratio:
220%
Effective Tax Rate:
13.77%
Effective tax rate is -58.09% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
12.85%
Return on equity (ROE) is -128.18% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.09%
Return on assets (ROA) is -0.94% lower than the industry
Financial Leverage:
1.4x
Current Ratio:
2.28
Current ratio is -37.64% below industry average
Cash Conversion Cycle (days):
49.7
Cash conversion cycle is -5.74% below industry average
The remaining useful life of property plant & equipment is: 4.6 years
Stock based compensation to net income ratio:
1.09%
In-depth Efficiency Analysis
Revenue generated per employee:
201.2K
Each employee generates -43% less revenue than industry average revenue per employee
EBITDA generated per employee:
60.9K
Each employee generates -45% less EBITDA than industry average revenue per employee
Profit generated per employee:
34.8K
Each employee generates -55% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
3.5K
Each employee generates -161% less free cash flow than industry average revenue per employee
Assets/Capital per employee
384.2K
Each employee generates -161% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 9.26%
Growth rate in R&D investment/expenditure is 3478.10% higher than the industry
Competitors/Peer firms of
TFX
CARDINAL HEALTH, INC. (XNYS:CAH)
SMITH & NEPHEW PLC (XNYS:SNN)
Teladoc Health, Inc. (XNYS:TDOC)
ELANCO ANIMAL HEALTH INCORPORATED (XNYS:ELAN)
MOLINA HEALTHCARE, INC. (XNYS:MOH)
Qiagen NV (XNYS:QGEN)
DAVITA INC. (XNYS:DVA)
Fresenius Medical Care AG & Co KGaA (XNYS:FMS)
UNIVERSAL HEALTH SERVICES, INC. (XNYS:UHS)
Current Analyst Ratings
Strong buy�21%
Buy�21%
Hold�8%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/27/22
Revenue:
2.82B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.27B
1.55B
137.25M
-
860.87M
-
-
998.12M
891.00K
50.59M
235.84M
851.97M
628.20M
487.65M
565.51M
77.89M
487.65M
Statement of Cash Flow
Date:
Period:
57.91M
Differed Income Tax :
409.00K
Stock Based Compensation :
5.30M
Change in Working Capital :
- 74464.00K
Accounts Receivables:
- 27805.00K
Other Working Capital:
5.34M
Other Non-Cash Items:
- 4319.00K
Net Cash Provided by Operating Activities:
61.98M
Investments in PP&E:
-
Net Acquisitions:
262.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/27/22
2022
Q1
466.66M
-
466.66M
407.16M
491.42M
128.96M
1.49B
560.41M
2.49B
2.24B
-
6.79M
75.62M
5.38B
-
6.87B
117.46M
110.00M
88.45M
-
428.74M
656.20M
1.85B
201.46M
2.42B
-
3.08B
47.93M
3.58B
- 368245.0K
-
March 27, 2022 at 6:00:00 AM
2.26B
3.80B
6.87B
-
1.96B
1.5B
-
- 13078.00K
- 12816.00K
-
-
-
- 15946.00K
- 5014.00K
- 20960.00K
- 6635.00K
21.57M
466.66M
445.08M
61.98M
- 13078.00K
48.91M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
TFX
2023
2024
2025
2026
2027
$241.30
$258.99
$277.98
$298.36
$320.23