Tempur Sealy Return On Asset vs. Price To Earning

TPD Stock  EUR 53.50  1.50  2.88%   
Based on the key profitability measurements obtained from Tempur Sealy's financial statements, Tempur Sealy International may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Tempur Sealy's ability to earn profits and add value for shareholders.
For Tempur Sealy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Tempur Sealy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Tempur Sealy International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Tempur Sealy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Tempur Sealy International over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Tempur Sealy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Tempur Sealy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tempur Sealy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Tempur Sealy Interna Price To Earning vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Tempur Sealy's current stock value. Our valuation model uses many indicators to compare Tempur Sealy value to that of its competitors to determine the firm's financial worth.
Tempur Sealy International is currently regarded as top stock in return on asset category among its peers. It also is currently regarded as top stock in price to earning category among its peers reporting about  304.35  of Price To Earning per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Tempur Sealy's earnings, one of the primary drivers of an investment's value.

Tempur Price To Earning vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Tempur Sealy

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0965
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Tempur Sealy

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
29.37 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Tempur Price To Earning Comparison

Tempur Sealy is currently under evaluation in price to earning category among its peers.

Tempur Sealy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Tempur Sealy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Tempur Sealy will eventually generate negative long term returns. The profitability progress is the general direction of Tempur Sealy's change in net profit over the period of time. It can combine multiple indicators of Tempur Sealy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Tempur Sealy International, Inc., together with its subsidiaries, develops, manufactures, markets, and distributes bedding products. Tempur Sealy International, Inc. was founded in 1989 and is headquartered in Lexington, Kentucky. TEMPUR SEALY operates under Home Furnishings Fixtures classification in Germany and is traded on Frankfurt Stock Exchange. It employs 6200 people.

Tempur Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Tempur Sealy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Tempur Sealy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Tempur Sealy's important profitability drivers and their relationship over time.

Use Tempur Sealy in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Tempur Sealy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tempur Sealy will appreciate offsetting losses from the drop in the long position's value.

Tempur Sealy Pair Trading

Tempur Sealy International Pair Trading Analysis

The ability to find closely correlated positions to Tempur Sealy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Tempur Sealy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Tempur Sealy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Tempur Sealy International to buy it.
The correlation of Tempur Sealy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Tempur Sealy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Tempur Sealy Interna moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Tempur Sealy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Tempur Sealy position

In addition to having Tempur Sealy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Stores Thematic Idea Now

Stores
Stores Theme
Companies providing different types of retail and wholesale services. The Stores theme has 43 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Stores Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Tempur Stock

When determining whether Tempur Sealy Interna offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Tempur Sealy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Tempur Sealy International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Tempur Sealy International Stock:
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You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
To fully project Tempur Sealy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Tempur Sealy Interna at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Tempur Sealy's income statement, its balance sheet, and the statement of cash flows.
Potential Tempur Sealy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Tempur Sealy investors may work on each financial statement separately, they are all related. The changes in Tempur Sealy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Tempur Sealy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.