Tempur Sealy International Increases Dividend

Tempur Sealy International, Inc. (NYSE: TPX) has announced an 18% increase in its quarterly cash dividend to $0.13 per share. The dividend is payable on March 7, 2024, to shareholders of record as of February 22, 2024. Scott Thompson, Chairman and CEO of Tempur Sealy, highlighted the company's strong market position and its ability to generate significant free cash flow as the basis for the dividend increase.

Thompson stated, "We are pleased to announce this increase to our quarterly dividend. Our Board of Directors increased the quarterly dividend to $0.13 per share based on the strength of the Company's market position and demonstrated ability to generate significant free cash flow. This marks the fourth increase to our dividend over the last three years, approximately doubling the cash dividend since its initiation in 2021."

Tempur Sealy International, Inc. is a leading designer, manufacturer, distributor, and retailer of bedding products globally, with highly recognized brands such as Tempur-Pedic®, Sealy®, and Stearns & Foster®. The company's products are available in over 100 countries through various channels, including third-party retailers, company-owned stores, and e-commerce channels.

In addition to the dividend announcement, the company's shares have moved 3.4%, reaching a trading price of $53.01.

The company's full 8-K submission is available here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $2,703 $3,106 $3,677 $4,931 $4,921 $4,942
Revenue Growth n/a 14.91% 18.38% 34.1% -0.19% 0.43%
Gross Margins 41% 43% 45% 44% 42% 43%
Operating Margins 9% 11% 14% 19% 14% 13%
Net Margins 4% 6% 9% 13% 9% 8%
Net Income (MM) $100 $190 $349 $624 $456 $393
Net Interest Expense (MM) $92 $86 $77 $66 $103 $131
Depreciation & Amort. (MM) $87 $90 $98 $113 $127 $133
Earnings Per Share $0.46 $0.86 $1.64 $3.06 $2.53 $2.21
EPS Growth n/a 86.96% 90.7% 86.59% -17.32% -12.65%
Diluted Shares (MM) 220 222 212 204 180 178
Capital Expenditures (MM) $74 $88 $111 $123 $306 $289
Current Ratio 1.2 1.16 0.99 1.21 1.22 1.18
Total Debt (MM) $1,693 $1,540 $1,367 $2,332 $2,810 $2,538

Tempur Sealy International benefits from rapidly growing revenues and increasing reinvestment in the business, strong operating margins with a positive growth rate, and exceptional EPS growth. The company's financial statements show wider gross margins than its peer group and positive cash flows. Furthermore, Tempur Sealy International has just enough current assets to cover current liabilities, as shown by its current ratio of 1.18.

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