Teleflex Incorporated

**Analysis of TFX Stock**

Technical Perspective TFX shows promising short-term momentum with an 11.42% one-month gain, outperforming both its own three-month trend and the broader market. However, trading 38% below its 52-week high with a large maximum drawdown indicates the stock is still in a recovery phase from significant prior losses. The technical picture suggests potential upside but remains cautious given the substantial distance from previous peaks.

Fundamental Assessment Fundamentally, TFX presents serious concerns, particularly a sharp swing to negative profitability and an inability to cover interest expenses. While liquidity is adequate, operational inefficiencies—evident in negative returns on assets and equity—point to deeper issues in core business performance. The company is currently loss-making, which complicates traditional valuation and raises sustainability questions.

Valuation & Risk Considerations Valuation metrics are not meaningful due to negative earnings, and the lack of peer data limits relative assessment. The moderate beta aligns with market volatility, but the large historical drawdown underscores meaningful downside risk. Overall, the stock carries high fundamental risk despite its recent technical rebound.

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**Investment Recommendation**

Based on the analysis, TFX is not recommended for purchase at this time. The severe deterioration in profitability, negative interest coverage, and poor operational efficiency indicate substantial fundamental weakness that outweighs the recent technical recovery. While the stock may appear oversold, the absence of clear earnings recovery or favorable peer valuation makes the risk-reward profile unattractive. Investors should monitor for sustained operational improvements before considering a position.

*Note: This is not investment advice, for reference only.*

RockFlow Model Forecast: Three Scenarios for 2026

Based on the provided analysis, the 12-month outlook for TFX is cautious with significant downside risk.

Key Catalysts: A sustained technical rebound could provide short-term upside, but the primary catalyst needed is a clear and decisive turnaround in the company's core profitability and operational efficiency. Evidence of a path back to positive earnings would be the most significant positive driver.

Potential Risks: The risks are substantial, dominated by the company's negative profitability, inability to cover interest expenses, and poor returns on assets and equity. These fundamental weaknesses threaten the company's financial sustainability and make it highly vulnerable to any economic downturn or operational setbacks.

Target Price Range: Given the severe fundamental concerns and the lack of a meaningful valuation anchor due to negative earnings, establishing a bullish target price is not justified. The outlook suggests the stock is more likely to face pressure than appreciate, with the current price potentially representing a lower risk level for new investment than higher prices.

Wall Street Consensus

Most Wall Street analysts are optimistic about Teleflex Incorporated's 12-month outlook, with consensus target around $111.80, indicating expected upside potential.

Overall, TFX has investment potential but also faces challenges. Here are key factors to weigh before investing.

TFX has demonstrated strong recent momentum but remains significantly below its 52-week high, indicating a recovery phase within a broader downtrend.

The stock has posted an impressive 11.42% gain over the past month, significantly outpacing its more modest 2.16% three-month return and slightly exceeding the broader market over the latter period. This suggests accelerating positive momentum in the short term. The low beta indicates the stock's volatility has been slightly less than the overall market during this recovery.

Currently trading at $111.80, TFX sits just 11.6% above its 52-week low and 38.1% below its peak, positioning it closer to oversold territory than overbought despite the recent rally. Given the substantial 43.51% maximum drawdown still present, the stock appears to be in the early stages of recovering from a significant decline.

Revenue & Profitability TFX experienced concerning volatility with Q3 2025 revenue increasing to $913M from $781M in Q2, yet profitability deteriorated sharply as the company swung from a 15.7% net profit margin to a -44.8% net loss. This dramatic decline stems from a significant negative operating income ratio of -3.3% and substantial other expenses, indicating severe pressure on core operations and potential one-time charges impacting results.

Financial Health The company maintains adequate liquidity with a current ratio of 2.57 and quick ratio of 1.53, though the cash ratio of 0.46 suggests limited immediate cash coverage. However, the interest coverage ratio of -0.79 and low cash flow to debt ratio of 0.04 raise concerns about TFX's ability to service its debt obligations from current earnings and cash flows despite a moderate debt-to-equity ratio of 0.72.

Operational Efficiency Operational metrics show significant strain with negative returns on assets (-5.2%), equity (-10.7%), and capital employed (-0.4%), reflecting poor capital allocation efficiency. The asset turnover of 0.12 and inventory turnover of 0.57 indicate suboptimal utilization of assets, while the extended cash conversion cycle of 183 days suggests working capital management challenges impacting operational effectiveness.

Valuation Level Based on the negative trailing and forward P/E ratios, TFX is currently unprofitable on a GAAP earnings basis, making traditional P/E valuation inapplicable. The negative EV/EBITDA further confirms the company is generating negative core operational earnings. Consequently, it is not possible to classify the stock as overvalued or undervalued using earnings-based multiples, as the metrics reflect a loss-making status rather than a premium or discount.

Peer Comparison A comparative analysis against industry peers cannot be performed as the necessary industry average data is unavailable. Without benchmarks for P/E, Price-to-Book, or EV/EBITDA ratios, it is impossible to contextualize TFX's valuation metrics—such as its P/B ratio of 1.3—within its competitive landscape. This lack of industry data significantly limits the ability to draw meaningful conclusions about its relative valuation.

Volatility Risk: With a Beta of 0.906, TFX exhibits volatility that is relatively closely aligned with the broader market, suggesting moderate systematic risk exposure. However, the substantial one-year maximum drawdown of -43.51% indicates significant downside volatility, highlighting a pronounced risk of severe capital loss during adverse market periods.

Other Risks: The absence of notable short interest suggests a lack of significant negative speculative sentiment against the stock. However, this does not eliminate other potential risks, such as company-specific operational challenges or broader sector-specific headwinds, which remain pertinent considerations.