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 49 industry peers in the Trading Companies & Distributors industry. TGH has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Each year in the past 5 years TGH has been profitable.
In the past 5 years TGH always reported a positive cash flow from operatings.
1.2 Ratios
TGH has a worse Return On Assets (2.61%) than 64.71% of its industry peers.
With a Return On Equity value of 9.33%, TGH is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
TGH has a Return On Invested Capital of 4.40%. This is in the lower half of the industry: TGH underperforms 70.59% of its industry peers.
TGH had an Average Return On Invested Capital over the past 3 years of 4.86%. This is below the industry average of 9.22%.
| 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
Looking at the Profit Margin, with a value of 22.64%, TGH belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
TGH's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 45.52%, TGH belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
In the last couple of years the Operating Margin of TGH has grown nicely.
TGH has a Gross Margin of 88.30%. This is amongst the best in the industry. TGH outperforms 96.08% of its industry peers.
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.
TGH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TGH has less shares outstanding
TGH has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.85, we must say that TGH is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.85, TGH is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
The Debt to FCF ratio of TGH is 9.04, which is on the high side as it means it would take TGH, 9.04 years of fcf income to pay off all of its debts.
TGH has a Debt to FCF ratio (9.04) which is in line with its industry peers.
A Debt/Equity ratio of 2.34 is on the high side and indicates that TGH has dependencies on debt financing.
TGH has a worse Debt to Equity ratio (2.34) than 72.55% of its industry peers.
| 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's Current ratio of 1.16 is on the low side compared to the rest of the industry. TGH is outperformed by 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 of 1.16. This is comparable to the rest of the industry: TGH outperforms 56.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The earnings per share for TGH have decreased strongly by -24.63% in the last year.
TGH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.70% yearly.
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
Based on estimates for the next years, TGH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
TGH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.35% yearly.
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.82, which indicates a very decent valuation of TGH.
Based on the Price/Earnings ratio, TGH is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of TGH to the average of the S&P500 Index (25.47), we can say TGH is valued rather cheaply.
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 cheaply inside the industry as 90.20% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, TGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
TGH's Enterprise Value to EBITDA is on the same level as the industry average.
TGH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TGH is 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
TGH's 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.
Compared to an average industry Dividend Yield of 2.08, TGH pays a better dividend. On top of this TGH pays more dividend than 86.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TGH has a dividend comparable with the average S&P500 company.
| 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
TGH pays out 38.39% of its income as dividend. This is a 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)
Earnings (Next)
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.
What is the valuation status for TGH stock?
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.
How financially healthy is TEXTAINER GROUP HOLDINGS LTD?
The financial health rating of TEXTAINER GROUP HOLDINGS LTD (TGH) is 3 / 10.
Can you provide the expected EPS growth for TGH stock?
The Earnings per Share (EPS) of TEXTAINER GROUP HOLDINGS LTD (TGH) is expected to grow by 6.9% in the next year.