Teleflex Inc (NYSE: TFX)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000096943
Market Cap 4.30 Bn
P/B 2.94
P/E 15.14
P/S 2.49
ROIC (Qtr) -3.95
Div Yield % 1.57
Rev 1y % (Qtr) 19.45
Total Debt (Qtr) 2.77 Bn
Debt/Equity (Qtr) 0.72

About

Teleflex Incorporated, commonly referred to as Teleflex, is a company that operates in the medical technology industry. It is a global provider of medical technology products that enhance clinical benefits, improve patient and provider safety, and reduce total procedural costs. Teleflex's main business activities involve designing, developing, manufacturing, and supplying single-use medical devices used by hospitals and healthcare providers for common diagnostic and therapeutic procedures in critical care and surgical applications. Teleflex generates...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 354M provide 3.54x coverage of short-term debt 100M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 390.94M provides strong 12.85x coverage of stock compensation 30.42M, indicating sustainable incentive practices.
  • Robust free cash flow of 264.33M exceeds capital expenditure of 126.61M by 2.09x, indicating strong organic growth funding capability.
  • Tangible assets of 2.92B provide robust 5.77x coverage of other current liabilities 507.12M, indicating strong asset backing.
  • Operating cash flow of 390.94M provides strong 3.09x coverage of capital expenditure 126.61M, enabling organic growth.

Bear case

  • Operating cash flow of 390.94M barely covers its investment activities of (849.87M), with a coverage ratio of -0.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (849.87M) provide weak support for R&D spending of 176.71M, which is -4.81x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 390.94M provides thin coverage of dividend payments of (60.98M) with a -6.41 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 354M provide limited coverage of acquisition spending of (826.46M), which is -0.43x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of (200.84M) show weak coverage of depreciation charges of 282.76M, with a -0.71 ratio indicating high capital intensity and potential reinvestment needs.

Consolidation Items Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 174.27 Bn 61.02 17.31 0.00 Bn
2 BDX Becton Dickinson & Co 59.72 Bn 37.77 3.14 19.18 Bn
3 RMD Resmed Inc 39.76 Bn 26.76 7.37 0.85 Bn
4 ALC Alcon Inc 38.93 Bn 37.18 3.82 5.24 Bn
5 WST West Pharmaceutical Services Inc 17.69 Bn 133.13 12.54 0.30 Bn
6 HOLX Hologic Inc 16.81 Bn 30.91 4.07 2.52 Bn
7 COO Cooper Companies, Inc. 16.37 Bn 43.67 4.00 2.51 Bn
8 ALGN Align Technology Inc 13.73 Bn 36.29 3.45 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.69 2.75
EV to Cash from Ops. EV/CFO 35.65 39.87
EV to Debt EV to Debt 1.97 27.09
EV to EBIT EV/EBIT 13.10 32.86
EV to EBITDA EV/EBITDA 19.91 19.31
EV to Free Cash Flow [EV/FCF] EV/FCF 44.36 0.88
EV to Market Cap EV to Market Cap 1.27 -4.26
EV to Revenue EV/Rev 3.16 252.61
Price to Book Value [P/B] P/B 2.94 6.13
Price to Earnings [P/E] P/E 15.14 184.03
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -5.38 -1.09
Dividend Payout Ratio % Div Payout % (Qtr) -18.70 1.36
Dividend per Basic Share Div per Share (Qtr) 1.36 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 22.76 8.74
Interest Coverage Int. cover (Qtr) -2.21 -117.83
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.70 -53.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 45.54 414.02
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -1.48
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -169.21 -57.42
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -95.14 -106.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -160.36 -37.00
EBT Growth (1y) % EBT 1y % (Qtr) -220.48 -42.63
EPS Growth (1y) % EPS 1y % (Qtr) -244.07 -15.05
FCF Growth (1y) % FCF 1y % (Qtr) -41.26 56.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.06 67.95
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.41 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.12 0.03
Cash Ratio Cash Ratio (Qtr) 0.46 2.51
Current Ratio Curr Ratio (Qtr) 2.57 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 0.55
Interest Cover Ratio Int Coverage (Qtr) -2.21 -117.83
Times Interest Earned Times Interest Earned (Qtr) -2.21 -117.83
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 2.60 -2,368.59
EBIT Margin % EBIT Margin % (Qtr) -6.30 -2,472.59
EBT Margin % EBT Margin % (Qtr) -9.14 -2,442.52
Gross Margin % Gross Margin % (Qtr) 53.70 30.06
Net Profit Margin % Net Margin % (Qtr) -10.30 -2,438.49