TEXTAINER GROUP HOLDINGS LTD (TGH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TGH - BMG8766E1093 - Common Stock
49.99 USD
+0.02 (+0.04%)
49.991 USD
0 (0%)
Overall TGH gets a fundamental rating of 5 out of 10. We evaluated TGH against 50 industry peers in the Trading Companies & Distributors industry. While TGH is still in line with the averages on profitability rating, there are concerns on its financial health. TGH may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- TGH had positive earnings in the past year.
- In the past year TGH had a positive cash flow from operations.
- In the past 5 years TGH has always been profitable.
- Each year in the past 5 years TGH had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.61%, TGH is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 9.33%, TGH is doing worse than 62.75% of the companies in the same industry.
- TGH's Return On Invested Capital of 4.40% is on the low side compared to the rest of the industry. TGH is outperformed by 70.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for TGH is below the industry average of 9.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 9.33% | ||
| ROIC | 4.4% |
ROA(3y)3.37%
ROA(5y)2.5%
ROE(3y)13.06%
ROE(5y)9.89%
ROIC(3y)4.86%
ROIC(5y)4.29%
1.3 Margins
- The Profit Margin of TGH (22.64%) is better than 98.04% of its industry peers.
- In the last couple of years the Profit Margin of TGH has grown nicely.
- TGH has a Operating Margin of 45.52%. This is amongst the best in the industry. TGH outperforms 96.08% of its industry peers.
- TGH's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 88.30%, TGH belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
- TGH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.52% | ||
| PM (TTM) | 22.64% | ||
| GM | 88.3% |
OM growth 3Y11.26%
OM growth 5Y7.72%
PM growth 3Y27.42%
PM growth 5Y24.91%
GM growth 3Y3.86%
GM growth 5Y3.68%
2. Health
2.1 Basic Checks
- TGH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for TGH has been reduced compared to 1 year ago.
- Compared to 1 year ago, TGH has an improved debt to assets ratio.
2.2 Solvency
- TGH has an Altman-Z score of 0.85. This is a bad value and indicates that TGH is not financially healthy and even has some risk of bankruptcy.
- TGH has a Altman-Z score of 0.85. This is amonst the worse of the industry: TGH underperforms 86.27% of its industry peers.
- TGH has a debt to FCF ratio of 9.04. This is a negative value and a sign of low solvency as TGH would need 9.04 years to pay back of all of its debts.
- TGH has a Debt to FCF ratio (9.04) which is comparable to the rest of the industry.
- TGH has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.34, TGH is doing worse than 72.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.71
WACC6.21%
2.3 Liquidity
- A Current Ratio of 1.16 indicates that TGH should not have too much problems paying its short term obligations.
- TGH has a Current ratio of 1.16. This is amonst the worse of the industry: TGH underperforms 82.35% of its industry peers.
- TGH has a Quick Ratio of 1.16. This is a normal value and indicates that TGH is financially healthy and should not expect problems in meeting its short term obligations.
- TGH has a Quick ratio (1.16) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- TGH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.63%.
- The Earnings Per Share has been growing by 38.70% on average over the past years. This is a very strong growth
- The Revenue for TGH has decreased by -10.65% in the past year. This is quite bad
- TGH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.82% yearly.
EPS 1Y (TTM)-24.63%
EPS 3Y40.38%
EPS 5Y38.7%
EPS Q2Q%-18.12%
Revenue 1Y (TTM)-10.65%
Revenue growth 3Y7.06%
Revenue growth 5Y3.82%
Sales Q2Q%-11.02%
3.2 Future
- The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
- Based on estimates for the next years, TGH will show a small growth in Revenue. The Revenue will grow by 3.35% on average per year.
EPS Next Y6.9%
EPS Next 2Y10.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year1.8%
Revenue Next 2Y3.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 10.82, which indicates a very decent valuation of TGH.
- TGH's Price/Earnings ratio is rather cheap when compared to the industry. TGH is cheaper than 86.27% of the companies in the same industry.
- TGH is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.12, the valuation of TGH can be described as reasonable.
- Based on the Price/Forward Earnings ratio, TGH is valued cheaper than 90.20% of the companies in the same industry.
- TGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as TGH.
- Based on the Price/Free Cash Flow ratio, TGH is valued cheaper than 96.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.74 | ||
| EV/EBITDA | 10.16 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TGH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)0.28
EPS Next 2Y10.35%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.40%, TGH has a reasonable but not impressive dividend return.
- TGH's Dividend Yield is rather good when compared to the industry average which is at 1.35. TGH pays more dividend than 86.27% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, TGH pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
- On average, the dividend of TGH grows each year by 26.84%, which is quite nice.
- TGH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)26.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 38.39% of the earnings are spent on dividend by TGH. This is a low number and sustainable payout ratio.
- The dividend of TGH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP38.39%
EPS Next 2Y10.35%
EPS Next 3YN/A
49.99
+0.02 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-13 2024-02-13/bmo
Earnings (Next)04-30 2024-04-30/amc
Inst Owners0.04%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap2.07B
Revenue(TTM)816.28M
Net Income(TTM)184.79M
Analysts46.67
Price Target51 (2.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend1.67
Dividend Growth(5Y)26.84%
DP38.39%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.26%
Min EPS beat(2)-7.07%
Max EPS beat(2)6.55%
EPS beat(4)3
Avg EPS beat(4)0.25%
Min EPS beat(4)-7.07%
Max EPS beat(4)6.55%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)10
Avg EPS beat(12)8.25%
EPS beat(16)14
Avg EPS beat(16)59.42%
Revenue beat(2)2
Avg Revenue beat(2)3.61%
Min Revenue beat(2)2.3%
Max Revenue beat(2)4.93%
Revenue beat(4)4
Avg Revenue beat(4)4.52%
Min Revenue beat(4)2.3%
Max Revenue beat(4)5.84%
Revenue beat(8)8
Avg Revenue beat(8)8.17%
Revenue beat(12)12
Avg Revenue beat(12)9.15%
Revenue beat(16)16
Avg Revenue beat(16)9.06%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-1.79%
EPS NQ rev (3m)-3.51%
EPS NY rev (1m)0.41%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 | ||
| P/S | 2.53 | ||
| P/FCF | 3.74 | ||
| P/OCF | 3.29 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)4.62
EY9.24%
EPS(NY)4.94
Fwd EY9.88%
FCF(TTM)13.36
FCFY26.72%
OCF(TTM)15.21
OCFY30.43%
SpS19.73
BVpS47.88
TBVpS47.88
PEG (NY)1.57
PEG (5Y)0.28
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.61% | ||
| ROE | 9.33% | ||
| ROCE | 5.56% | ||
| ROIC | 4.4% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 4.58% | ||
| OM | 45.52% | ||
| PM (TTM) | 22.64% | ||
| GM | 88.3% | ||
| FCFM | 67.71% |
ROA(3y)3.37%
ROA(5y)2.5%
ROE(3y)13.06%
ROE(5y)9.89%
ROIC(3y)4.86%
ROIC(5y)4.29%
ROICexc(3y)5.08%
ROICexc(5y)4.49%
ROICexgc(3y)5.08%
ROICexgc(5y)4.49%
ROCE(3y)6.16%
ROCE(5y)5.44%
ROICexgc growth 3Y8.49%
ROICexgc growth 5Y3.21%
ROICexc growth 3Y8.51%
ROICexc growth 5Y3.24%
OM growth 3Y11.26%
OM growth 5Y7.72%
PM growth 3Y27.42%
PM growth 5Y24.91%
GM growth 3Y3.86%
GM growth 5Y3.68%
F-Score5
Asset Turnover0.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 9.04 | ||
| Debt/EBITDA | 7.08 | ||
| Cap/Depr | 27.08% | ||
| Cap/Sales | 9.41% | ||
| Interest Coverage | 2.32 | ||
| Cash Conversion | 96.08% | ||
| Profit Quality | 299.08% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 0.85 |
F-Score5
WACC6.21%
ROIC/WACC0.71
Cap/Depr(3y)299.47%
Cap/Depr(5y)271.72%
Cap/Sales(3y)99.26%
Cap/Sales(5y)95.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.63%
EPS 3Y40.38%
EPS 5Y38.7%
EPS Q2Q%-18.12%
EPS Next Y6.9%
EPS Next 2Y10.35%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.65%
Revenue growth 3Y7.06%
Revenue growth 5Y3.82%
Sales Q2Q%-11.02%
Revenue Next Year1.8%
Revenue Next 2Y3.35%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.54%
EBIT growth 3Y19.11%
EBIT growth 5Y11.83%
EBIT Next Year78.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.35%
OCF growth 3Y16.68%
OCF growth 5Y20.06%
TEXTAINER GROUP HOLDINGS LTD / TGH FAQ
Can you provide the ChartMill fundamental rating for TEXTAINER GROUP HOLDINGS LTD?
ChartMill assigns a fundamental rating of 5 / 10 to TGH.
Can you provide the valuation status for TEXTAINER GROUP HOLDINGS LTD?
ChartMill assigns a valuation rating of 7 / 10 to TEXTAINER GROUP HOLDINGS LTD (TGH). This can be considered as Undervalued.
Can you provide the profitability details for TEXTAINER GROUP HOLDINGS LTD?
TEXTAINER GROUP HOLDINGS LTD (TGH) has a profitability rating of 6 / 10.
What are the PE and PB ratios of TEXTAINER GROUP HOLDINGS LTD (TGH) stock?
The Price/Earnings (PE) ratio for TEXTAINER GROUP HOLDINGS LTD (TGH) is 10.82 and the Price/Book (PB) ratio is 1.04.
How sustainable is the dividend of TEXTAINER GROUP HOLDINGS LTD (TGH) stock?
The dividend rating of TEXTAINER GROUP HOLDINGS LTD (TGH) is 5 / 10 and the dividend payout ratio is 38.39%.