Why is Tempur Sealy International, Inc. ?
1
High Management Efficiency with a high ROCE of 24.03%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.08
3
Healthy long term growth as Operating profit has grown by an annual rate 11.58%
4
With a growth in Net Sales of 52.46%, the company declared Very Positive results in Jun 25
- The company has declared positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 678.2 MM
- DIVIDEND PAYOUT RATIO(Y) Highest at 32.18%
- NET PROFIT(9M) At USD 375.04 MM has Grown at 42.96%
5
Market Beating performance in long term as well as near term
- Along with generating 69.97% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Tempur Sealy International, Inc. should be less than 10%
- Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tempur Sealy International, Inc. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Tempur Sealy International, Inc.
7.78%
2.80
33.26%
S&P 500
22.99%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
13.91%
EBIT Growth (5y)
11.21%
EBIT to Interest (avg)
7.08
Debt to EBITDA (avg)
3.48
Net Debt to Equity (avg)
1.93
Sales to Capital Employed (avg)
1.24
Tax Ratio
22.77%
Dividend Payout Ratio
32.68%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
24.03%
ROE (avg)
141.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
6.83
EV to EBIT
25.92
EV to EBITDA
20.59
EV to Capital Employed
3.27
EV to Sales
3.49
PEG Ratio
1.58
Dividend Yield
50.27%
ROCE (Latest)
12.63%
ROE (Latest)
20.02%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Movement
14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 940.2 MM
NET SALES(HY)
At USD 3,669.9 MM has Grown at 30.48%
DEBT-EQUITY RATIO
(HY)
Lowest at 204.1 %
DIVIDEND PER SHARE(HY)
Highest at USD 22.54
DIVIDEND PAYOUT RATIO(Y)
Highest at 34.69%
RAW MATERIAL COST(Y)
Fallen by -3.62% (YoY
DEBTORS TURNOVER RATIO(HY)
Highest at 22.54 times
-7What is not working for the Company
INTEREST(HY)
At USD 124.2 MM has Grown at 53.33%
ROCE(HY)
Lowest at 17.71%
Here's what is working for Tempur Sealy International, Inc.
Operating Cash Flow
Highest at USD 940.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
At USD 3,669.9 MM has Grown at 30.48%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Debt-Equity Ratio
Lowest at 204.1 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 22.54 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debtors Turnover Ratio
Highest at 22.54 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Dividend Payout Ratio
Highest at 34.69%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -3.62% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Tempur Sealy International, Inc.
Interest
At USD 124.2 MM has Grown at 53.33%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)






