TEXTAINER GROUP HOLDINGS LTD (TGH) Fundamental Analysis & Valuation

NYSE:TGH • BMG8766E1093

Current stock price

49.99 USD
+0.02 (+0.04%)
At close:
49.991 USD
0 (0%)
After Hours:

This TGH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TGH Profitability Analysis

1.1 Basic Checks

  • In the past year TGH was profitable.
  • In the past year TGH had a positive cash flow from operations.
  • Each year in the past 5 years TGH has been profitable.
  • Each year in the past 5 years TGH had a positive operating cash flow.
TGH Yearly Net Income VS EBIT VS OCF VS FCFTGH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

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.
  • 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 worse Return On Invested Capital (4.40%) than 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 9.05%.
Industry RankSector 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%
TGH Yearly ROA, ROE, ROICTGH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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.
  • In the last couple of years the Profit Margin of TGH has grown nicely.
  • TGH's Operating Margin of 45.52% is amongst the best of 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 RankSector 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%
TGH Yearly Profit, Operating, Gross MarginsTGH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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3

2. TGH Health Analysis

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.
  • Compared to 1 year ago, TGH has less shares outstanding
  • Compared to 1 year ago, TGH has an improved debt to assets ratio.
TGH Yearly Shares OutstandingTGH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
TGH Yearly Total Debt VS Total AssetsTGH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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.
  • TGH's Altman-Z score of 0.85 is on the low side compared to the rest of the industry. TGH is outperformed by 86.27% of its industry peers.
  • 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 of 9.04. This is comparable to the rest of the industry: TGH outperforms 52.94% of its industry peers.
  • TGH has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
  • TGH's Debt to Equity ratio of 2.34 is on the low side compared to the rest of the industry. TGH is outperformed by 72.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.34
Debt/FCF 9.04
Altman-Z 0.85
ROIC/WACC0.71
WACC6.21%
TGH Yearly LT Debt VS Equity VS FCFTGH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

2.3 Liquidity

  • TGH has a Current 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.
  • The Current ratio of TGH (1.16) is worse than 82.35% of its industry peers.
  • A Quick Ratio of 1.16 indicates that TGH should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.16, TGH perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16
TGH Yearly Current Assets VS Current LiabilitesTGH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TGH Growth Analysis

3.1 Past

  • TGH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.63%.
  • TGH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.70% yearly.
  • TGH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.65%.
  • The Revenue has been growing slightly by 3.82% on average over the past years.
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.
  • 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.
TGH Yearly Revenue VS EstimatesTGH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
TGH Yearly EPS VS EstimatesTGH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6

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7

4. TGH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.82, which indicates a very decent valuation of TGH.
  • 86.27% of the companies in the same industry are more expensive than TGH, based on the Price/Earnings ratio.
  • TGH is valuated cheaply when we compare the Price/Earnings ratio to 27.87, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 10.12, the valuation of TGH can be described as very reasonable.
  • Based on the Price/Forward Earnings ratio, TGH is valued cheaper than 90.20% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TGH to the average of the S&P500 Index (38.51), we can say TGH is valued rather cheaply.
Industry RankSector Rank
PE 10.82
Fwd PE 10.12
TGH Price Earnings VS Forward Price EarningsTGH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 3.74
EV/EBITDA 10.16
TGH Per share dataTGH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • TGH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of TGH may justify a higher PE ratio.
PEG (NY)1.57
PEG (5Y)0.28
EPS Next 2Y10.35%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TGH Dividend Analysis

5.1 Amount

  • TGH has a Yearly Dividend Yield of 2.40%.
  • TGH's Dividend Yield is rather good when compared to the industry average which is at 0.79. TGH pays more dividend than 86.27% of the companies in the same industry.
  • TGH's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector 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
TGH Yearly Dividends per shareTGH Yearly Dividends per shareYearly Dividends per share 2016 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

  • 38.39% of the earnings are spent on dividend by TGH. This is a low number and sustainable payout ratio.
  • TGH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP38.39%
EPS Next 2Y10.35%
EPS Next 3YN/A
TGH Yearly Income VS Free CF VS DividendTGH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B
TGH Dividend Payout.TGH Dividend Payout, showing the Payout Ratio.TGH Dividend Payout.PayoutRetained Earnings

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TGH Fundamentals: All Metrics, Ratios and Statistics

TEXTAINER GROUP HOLDINGS LTD

NYSE:TGH (3/13/2024, 8:04:00 PM)

After market: 49.991 0 (0%)

49.99

+0.02 (+0.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-13
Earnings (Next)04-30
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


What is the profitability of TGH stock?

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.


Is the dividend of TEXTAINER GROUP HOLDINGS LTD sustainable?

The dividend rating of TEXTAINER GROUP HOLDINGS LTD (TGH) is 5 / 10 and the dividend payout ratio is 38.39%.