TEXTAINER GROUP HOLDINGS LTD (TGH) Stock Fundamental Analysis
NYSE:TGH - New York Stock Exchange, Inc. - BMG8766E1093 - Common Stock - Currency: USD
Overall TGH gets a fundamental rating of 5 out of 10. We evaluated TGH against 48 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of TGH while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on TGH.
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
The Return On Assets of TGH (2.61%) is worse than 64.71% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 4.40%, TGH is doing worse than 70.59% of the companies in the same industry.
TGH had an Average Return On Invested Capital over the past 3 years of 4.86%. This is significantly below the industry average of 9.88%.
| 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
With an excellent Profit Margin value of 22.64%, TGH belongs to the best 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.
The Operating Margin of TGH (45.52%) is better than 96.08% of its industry peers.
In the last couple of years the Operating Margin of TGH has grown nicely.
The Gross Margin of TGH (88.30%) is better than 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.
The number of shares outstanding for TGH has been reduced compared to 1 year ago.
The number of shares outstanding for TGH has been reduced compared to 5 years ago.
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.
The Altman-Z score of TGH (0.85) is worse than 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 (9.04) which is in line with its industry peers.
TGH has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.34, TGH is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.34 | ||
| Debt/FCF | 9.04 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.71
WACC6.21%
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.
Looking at the Current ratio, with a value of 1.16, TGH is doing worse than 82.35% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that TGH should not have too much problems paying 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%.
Measured over the past years, TGH shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.70% on average per year.
TGH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.65%.
Measured over the past years, TGH shows a small growth in Revenue. The Revenue has been growing by 3.82% on average per year.
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.
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
With a Price/Earnings ratio of 10.82, the valuation of TGH can be described as very reasonable.
86.27% of the companies in the same industry are more expensive than TGH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.62, TGH is valued rather cheaply.
A Price/Forward Earnings ratio of 10.12 indicates a reasonable valuation of TGH.
TGH's Price/Forward Earnings ratio is rather cheap when compared to the industry. TGH is cheaper than 90.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, TGH is valued rather cheaply.
| 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.
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.
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
5. Dividend
5.1 Amount
TGH has a Yearly Dividend Yield of 2.40%.
Compared to an average industry Dividend Yield of 1.90, TGH pays a better dividend. On top of this TGH pays more dividend than 86.27% of the companies listed in the same industry.
TGH's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of TGH is nicely growing with an annual growth rate of 26.84%!
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
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
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%
ROICexcg growth 3Y8.49%
ROICexcg 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%