Teleflex Inc (TFX) stock analysis

P/E below its 5-year median

Teleflex's P/E of 19.0 is below its own 5-year median of 31.4.

P/E below the industry

Teleflex's P/E of 19.0 is below the Surgical, Medical, and Dental Instruments and Supplies median of 27.7.

EV/EBITDA below its 5-year median

Teleflex's EV/EBITDA of 18.6 is below its 5-year median of 26.1.

P/B below the industry

Teleflex's price-to-book of 1.90 is below the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $156.33 is below our fair value estimate of $217.25.

Margin of safety over 20%

The price is 28.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -10.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 20.9% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance lowered

Teleflex lowered its 2026 pro forma adjusted constant currency revenue growth outlook on Aug 6, 2026.

Gross margin improving

Gross margin was 58.3% over the last twelve months, against 58.0% a year earlier.

Return on equity under 15%

Return on equity was 8.3% over the last twelve months and averaged 1.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 3.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Teleflex's return on equity of 8.3% is above the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 13.5% over the last twelve months, against a 5-year average of 1.9%.

Net margin above the industry

Teleflex's net margin of 13.5% is above the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 46.3% of shareholders' equity, above the 40% we consider low.

Debt falling against equity

Debt to equity fell from 74.3% five years ago to 46.3%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 19.8% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.1 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.01 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.03; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Teleflex paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Teleflex yields 0.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 19.3% of net income.

Covered by free cash flow

Dividends take 24.2% of free cash flow.