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Teleflex Inc (TFX)
NYSE:TFX

Teleflex (TFX) AI Stock Analysis

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TF

Teleflex

(NYSE:TFX)

Rating:58Neutral
Price Target:
Teleflex's solid financial performance is offset by technical indicators pointing towards bearish sentiment and perceived overvaluation. Strategic initiatives and acquisitions offer potential long-term growth, but near-term challenges such as revenue declines and operational pressures weigh down the outlook.
Positive Factors
Acquisition interest
TFX has started to engage potential buyers for NewCo, and the interest in acquiring NewCo is described as significant, validating the separated businesses as good assets.
Earnings performance
TFX reported Q1 results that beat both consensus and analyst estimate on EPS.
Shareholder value
The separation will reduce the number of RemainCo manufacturing facilities to 7 from 19 as a combined company, simplifying the business and unlocking shareholder value.
Negative Factors
Financial performance
An underperform rating is maintained due to limited growth visibility and ongoing challenges facing TFX.
Revenue growth
Management lowered GM and OM guidance for the year.
Tariff impact
The tariff situation is too volatile, and TFX is not updating its guidance, indicating uncertainty in future financial impacts.

Teleflex (TFX) vs. SPDR S&P 500 ETF (SPY)

Teleflex Business Overview & Revenue Model

Company DescriptionTeleflex Incorporated designs, develops, manufactures, and supplies single-use medical devices for common diagnostic and therapeutic procedures in critical care and surgical applications worldwide. It provides vascular access products that comprise Arrow branded catheters, catheter navigation and tip positioning systems, and intraosseous access systems for the administration of intravenous therapies, the measurement of blood pressure, and the withdrawal of blood samples through a single puncture site. The company also offers interventional products, which consists of various coronary catheters, structural heart therapies, and peripheral intervention and cardiac assist products that are used by interventional cardiologists and radiologists, and vascular surgeons; and Arrow branded catheters, Guideline and Trapliner catheters, the Manta Vascular Closure, and Arrow Oncontrol devices. It provides anesthesia products, such as airway and pain management products to support hospital, emergency medicine, and military channels; and surgical products, including metal and polymer ligation clips, and fascial closure surgical systems that are used in laparoscopic surgical procedures, percutaneous surgical systems, and other surgical instruments. The company also offers interventional urology products comprising the UroLift System, an invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia; and respiratory products, including oxygen and aerosol therapies, spirometry, and ventilation management products for use in various care settings. It provides urology products, such as catheters, urine collectors, and catheterization accessories and products for operative endourology; and bladder management services. The company serves hospitals and healthcare providers, medical device manufacturers, and home care markets. The company was incorporated in 1943 and is headquartered in Wayne, Pennsylvania.
How the Company Makes MoneyTeleflex 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 strong financial health with robust cash flow management and stable balance sheet metrics. Profitability is strong, though there are some operational cost challenges as reflected in the lower EBIT margin.
Income Statement
78
Positive
Teleflex shows strong profitability with a Gross Profit Margin of 55.7% and Net Profit Margin of 5.0% in TTM. Revenue grew modestly at 0.6% from the previous year, indicating stable growth. Notably, the EBITDA Margin stands at 15.9%, reflecting healthy operational efficiency. However, the EBIT Margin is somewhat lower at 8.6%, suggesting some operational cost challenges.
Balance Sheet
72
Positive
The company maintains a solid financial structure with a Debt-to-Equity Ratio of 0.05, indicating low leverage. The Return on Equity is 3.6% in TTM, which is moderate but could be improved. The Equity Ratio is robust at 57.2%, showcasing a strong equity base. Overall, the balance sheet is stable with manageable debt levels.
Cash Flow
85
Very Positive
Teleflex exhibits strong cash flow management, with a Free Cash Flow to Net Income Ratio of 3.41 in TTM, indicating efficient cash generation relative to earnings. The Operating Cash Flow to Net Income Ratio is 4.00, highlighting strong cash conversion. Free Cash Flow has grown slightly by 0.2% from the previous year, maintaining positive cash flow growth.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.01B3.05B2.97B2.79B2.81B2.54B
Gross Profit
1.68B1.70B1.65B1.53B1.55B1.32B
EBIT
290.63M151.01M506.31M499.73M628.10M423.07M
EBITDA
479.36M452.66M761.21M751.65M873.10M665.98M
Net Income Common Stockholders
149.39M69.67M356.33M363.14M485.37M335.32M
Balance SheetCash, Cash Equivalents and Short-Term Investments
284.12M290.19M222.85M292.03M445.08M375.88M
Total Assets
7.16B7.10B7.53B6.93B6.87B7.15B
Total Debt
2.00B1.76B1.93B1.83B1.97B2.56B
Net Debt
1.72B1.46B1.70B1.54B1.52B2.19B
Total Liabilities
3.07B2.82B3.09B2.91B3.12B3.82B
Stockholders Equity
4.10B4.28B4.44B4.02B3.75B3.34B
Cash FlowFree Cash Flow
479.84M509.31M419.20M262.95M579.80M345.71M
Operating Cash Flow
597.85M635.74M510.64M342.14M651.42M436.41M
Investing Cash Flow
-103.34M-99.36M-621.23M-257.94M156.74M-837.78M
Financing Cash Flow
-350.48M-421.93M38.54M-217.51M-715.82M455.16M

Teleflex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price121.97
Price Trends
50DMA
132.17
Negative
100DMA
150.55
Negative
200DMA
184.79
Negative
Market Momentum
MACD
-2.26
Negative
RSI
39.40
Neutral
STOCH
35.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFX, the sentiment is Negative. The current price of 121.97 is below the 20-day moving average (MA) of 127.90, below the 50-day MA of 132.17, and below the 200-day MA of 184.79, indicating a bearish trend. The MACD of -2.26 indicates Negative momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 35.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TFX.

Teleflex Risk Analysis

Teleflex disclosed 34 risk factors in its most recent earnings report. Teleflex reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Future material impairments to the value of our goodwill or other intangible assets would negatively affect our operating results. Q4, 2024
2.
The proposed separation of our Urology, Acute Care and OEM businesses may not be completed on the terms or timeline currently contemplated, if at all. Q4, 2024
3.
We will be exposed to new risks as a result of the proposed separation. The proposed separation may not achieve its anticipated benefits, or our costs may exceed our estimates. Q4, 2024

Teleflex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$5.84B47.329.16%8.24%18.54%
HAHAE
69
Neutral
$3.46B20.1818.83%8.14%2.55%
68
Neutral
$3.32B-4.62%7.19%-56.19%
TFTFX
58
Neutral
$5.61B39.983.48%1.07%0.29%-48.98%
57
Neutral
$4.15B-5.56%11.94%-6.98%
56
Neutral
$7.17B-1.16%4.88%-196.93%
53
Neutral
$5.24B3.07-43.58%2.80%16.87%-0.11%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TFX
Teleflex
121.97
-82.84
-40.45%
HAE
Haemonetics
66.92
-21.72
-24.50%
ICUI
ICU Medical
130.75
26.46
25.37%
MMSI
Merit Medical Systems
96.49
15.59
19.27%
RGEN
Repligen
120.21
-38.57
-24.29%
BLCO
Bausch + Lomb Corporation
11.19
-3.52
-23.93%

Teleflex Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: -10.77%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Teleflex, with achievements such as FDA clearance for new products and strategic initiatives offset by significant revenue declines, margin pressures, and challenges in key segments like OEM and UroLift. The impact of tariffs and declining earnings per share contributed to a cautious outlook, despite ongoing efforts to enhance shareholder value through strategic separation and acquisitions.
Q1-2025 Updates
Positive Updates
FDA Clearance for AC3 Intra-Aortic Balloon Pump
The AC3 range Intra-Aortic Balloon Pump received 510(k) clearance from the FDA, allowing for full market release in the U.S. and shipping to customers in Q2 2025.
Strong Performance in Vascular Access
Vascular Access revenue increased by 1.9% year-over-year to $182.4 million, led by strong growth in PICCs and solid performance in EZ-IO.
Ringer Perfusion Balloon Catheter IDE Study Results
Preliminary results for the Ringer PBC Catheter IDE Study were favorable, with a 73% primary efficacy endpoint success rate, supporting a premarket application submitted to the FDA.
Strategic Separation and Acquisition
Intention to separate Teleflex into two companies to enhance shareholder value, and acquisition of BIOTRONIK Vascular Intervention business to close by Q3 2025.
Accelerated Share Repurchase Program
Completed a $300 million accelerated share repurchase program, acquiring over 2.2 million shares at an average price of $135.23.
Negative Updates
Revenue Decline
Q1 2025 revenues were $700.7 million, a 5% decrease year-over-year on a GAAP basis, and a 3.8% decline on an adjusted constant currency basis.
Decreased Adjusted Earnings Per Share
Adjusted earnings per share was $2.91, a 9.3% decrease year-over-year.
Challenges in OEM and UroLift
OEM revenue decreased 26.8% year-over-year, and Interventional Urology revenue fell by 10.7%, with continued pressure on UroLift.
Negative Growth in Asia
Asia revenues decreased by 9.7% year-over-year, impacted by volume-based procurement in China.
Adjusted Operating and Gross Margins Decline
Adjusted gross margin was 60.4%, down 70 basis points, and adjusted operating margin was 24.7%, down 190 basis points year-over-year.
Tariff Impact
Projected $55 million impact from tariffs in 2025, affecting gross and operating margins.
Company Guidance
During the Teleflex First Quarter 2025 Earnings Conference Call, the company provided guidance for the fiscal year 2025, expecting adjusted constant currency revenue growth of 1% to 2%. They anticipate a negative impact from foreign exchange of $5 million, representing a 17 basis point headwind to GAAP revenue growth, and adjusted earnings per share are now expected to be between $13.20 and $13.60. The company projects a gross margin in the range of 58.25% to 59% and operating margins between 24.6% and 25%. A significant impact from newly enacted tariffs is expected, amounting to approximately $55 million, which will be recorded in cost of goods sold, and the company is exploring strategies to mitigate this exposure. Net interest expense is projected to be around $75 million, with an unchanged adjusted tax rate of approximately 13.5% and a full-year share count expectation of approximately 44.9 million shares.

Teleflex Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Teleflex Amends Bylaws to Ease Stockholder Actions
Neutral
May 15, 2025

On May 9, 2025, Teleflex Incorporated’s Board of Directors approved amendments to the company’s bylaws, specifically removing a section that required stockholder actions to occur only at official meetings. This change could impact how stockholder decisions are made in the future. Additionally, during the 2025 annual meeting, stockholders voted on various proposals, including the election of directors and executive compensation, with most proposals receiving majority approval, except for a stockholder proposal on special meeting requirements.

The most recent analyst rating on (TFX) stock is a Buy with a $285.00 price target. To see the full list of analyst forecasts on Teleflex stock, see the TFX Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Teleflex Raises Revenue Outlook Amid Q1 Revenue Decline
Neutral
May 1, 2025

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.

Executive/Board ChangesPrivate Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Teleflex Announces CFO Change and Strategic Split
Positive
Feb 27, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.