Teleflex (TFX) AI Stock Analysis

• Market Cap: $5.80B
• Dividend Yield: 1%
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 87.8
• Beta (1Y): 0.79
• Revenue Growth: 2.45%
• EPS Growth: -80.87%
• Country: US
• Employees: 14,100
• Sector: Healthcare
• Sector Strength: 69
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 3.89
• Shares Outstanding: 44,680,290
• 10 Day Avg. Volume: 1,191,465
• 30 Day Avg. Volume: 1,522,956
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.15
• Price to Cash Flow (P/CF): 8.10
• P/FCF Ratio: 8.10
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.71
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $151.71
• Price Target Upside: 10.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

Teleflex shows a strong financial position with consistent revenue growth and efficient cash flow management, but faces challenges with declining profit margins and high P/E ratio indicating overvaluation. The technical analysis suggests bearish sentiment with potential oversold conditions. Recent earnings call highlights growth and strategic initiatives, but also reveals significant challenges in key segments, affecting overall stock performance.

Positive Factors

Share Repurchase

Management expects to draw its accelerated share repurchase program to a close, initiating a $300 mln accelerated share repurchase.

Sum-of-parts Valuation

A sum-of-parts valuation suggests that TFX shares are undervalued.

Valuation

Move could unlock substantial value, with shares trading at more than a -50% discount to the prevailing 21-22x overall peer framework.

Negative Factors

Guidance and Earnings

TFX's 2025 guidance implies that revenue growth will be hampered due to three temporal issues that aggregate to ~$100 mln in lower sales.

Investor Skepticism

Investors are expected to remain skeptical of TFX's valuation given uncertainty about growth rates.

Revenue Growth Challenges

Continued reimbursement pressure for UroLift is one of the factors impacting revenue growth.

Teleflex Business Overview & Revenue Model

Company Description

Teleflex Incorporated (TFX) is a global provider of medical technologies designed to improve the health and quality of people's lives. The company specializes in the development, manufacture, and supply of single-use medical devices used by hospitals and healthcare providers across various medical sectors, including vascular access, anesthesia, cardiac care, urology, and surgery. Teleflex operates in several segments, including Vascular Access, Anesthesia, Surgical, Interventional, and Original Equipment Manufacturer (OEM) and Development Services, offering a diverse range of products and solutions.

How the Company Makes Money

Teleflex generates revenue primarily through the sale of its medical devices across multiple healthcare sectors. The company's key revenue streams include the Vascular Access segment, which offers catheters and access devices; the Anesthesia segment, which provides airway management and pain management products; and the Surgical segment, which includes ligation, closure, and other surgical products. Teleflex also earns income through its Interventional segment, focusing on cardiac care and urology products, and its OEM and Development Services segment, which develops and manufactures products for third-party medical device companies. The company's earnings are bolstered by strategic acquisitions that expand its product offerings and market presence, as well as partnerships with healthcare providers and institutions that enhance its distribution network.

Teleflex Financial Statement Overview

Summary

Teleflex exhibits a strong financial position with consistent revenue growth and efficient cash flow management. Despite some pressure on profit margins and operating income, the company's balance sheet remains robust, supported by a stable equity base and effective debt reduction. Overall, Teleflex is well-positioned within the Medical Equipment & Supplies industry, though attention to profitability should be a focus moving forward.

Income Statement

Teleflex has demonstrated steady revenue growth, with a notable increase from 2023 to 2024. However, the net profit margin has decreased significantly, indicating increased costs or expenses. The gross profit margin remains strong, suggesting effective cost controls over direct costs. EBIT and EBITDA margins have declined, reflecting challenges in managing operating expenses.

Balance Sheet

The company maintains a solid equity base, with a healthy equity ratio indicating financial stability. The reduction in total debt from previous years has improved the debt-to-equity ratio. However, the relatively high stockholders' equity ratio suggests a conservative capital structure that may limit financial flexibility.

Cash Flow

Teleflex's cash flow performance is strong, with significant growth in free cash flow and operating cash flow. The operating cash flow to net income ratio indicates efficient cash generation relative to profits, while the free cash flow to net income ratio suggests robust cash management practices.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.05B	2.97B	2.79B	2.81B	2.54B
	Gross Profit
1.70B	1.65B	1.53B	1.55B	1.32B
	EBIT
151.01M	506.31M	499.73M	628.10M	423.07M
	EBITDA
433.62M	761.21M	751.65M	873.10M	665.98M
	Net Income Common Stockholders
69.67M	356.33M	363.14M	485.37M	335.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
290.19M	222.85M	292.03M	445.08M	375.88M
	Total Assets
7.10B	7.53B	6.93B	6.87B	7.15B
	Total Debt
1.76B	1.93B	1.83B	1.97B	2.56B
	Net Debt
1.46B	1.70B	1.54B	1.52B	2.19B
	Total Liabilities
2.82B	3.09B	2.91B	3.12B	3.82B
	Stockholders Equity
4.28B	4.44B	4.02B	3.75B	3.34B
Cash Flow		Free Cash Flow
509.31M	419.20M	262.95M	579.80M	345.71M
	Operating Cash Flow
635.74M	510.64M	342.14M	651.42M	436.41M
	Investing Cash Flow
-99.36M	-621.23M	-257.94M	156.74M	-837.78M
	Financing Cash Flow
-421.93M	38.54M	-217.51M	-715.82M	455.16M

Teleflex Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 137.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFX, the sentiment is Neutral. The current price of 137.05 is above the 20-day moving average (MA) of 132.97, below the 50-day MA of 141.07, and below the 200-day MA of 193.04, indicating a neutral trend. The MACD of -1.72 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 84.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TFX.

Teleflex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAE	69 Neutral	$3.15B	24.65	14.06%	―	8.14%	2.55%
MMSI	69 Neutral	$5.64B	46.81	9.16%	―	8.24%	18.54%
TFX	61 Neutral	$5.80B	87.79	1.61%	1.00%	2.45%	-80.87%
RGEN	59 Neutral	$8.06B	―	-1.16%	―	4.88%	-196.93%
BLCO	58 Neutral	$4.83B	―	-4.76%	―	15.56%	-21.60%
ICUI	55 Neutral	$3.36B	―	-5.76%	―	5.28%	-292.14%
Sector *	51 Neutral	$5.35B	3.41	-40.83%	2.89%	18.11%	2.60%

Teleflex Corporate Events

Teleflex Raises Revenue Outlook Amid Q1 Revenue Decline

Teleflex reported a decrease in first-quarter revenues for 2025, with a 5.0% decline compared to the previous year, and adjusted diluted EPS also fell from $3.21 to $2.91. Despite these challenges, the company raised its full-year revenue growth outlook on a GAAP basis and completed a $300 million accelerated share repurchase. Teleflex is also exploring the separation into two independent companies, which has attracted significant third-party interest. The company is working on strategies to mitigate the impact of tariffs, which are expected to cost approximately $55 million in 2025.

Spark’s Take on TFX Stock

According to Spark, TipRanks’ AI Analyst, TFX is a Neutral.

Teleflex shows a strong financial position with consistent revenue growth and efficient cash flow management, but faces challenges with declining profit margins and high P/E ratio indicating overvaluation. The technical analysis suggests bearish sentiment with potential oversold conditions. Recent earnings call highlights growth and strategic initiatives, but also reveals significant challenges in key segments, affecting overall stock performance.

To see Spark’s full report on TFX stock, click here.

Teleflex Announces CFO Change and Strategic Split

On February 24, 2025, Teleflex amended its credit agreement to facilitate a $500 million delayed draw term loan for acquiring BIOTRONIK’s Vascular Intervention business, enhancing its product suite in coronary and peripheral interventions. Additionally, the company announced the retirement of CFO Thomas E. Powell and the appointment of John R. Deren as his successor, effective April 2, 2025, alongside strategic plans to separate into two publicly traded entities, aiming to streamline operations and increase management focus.