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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
TGH had positive earnings in each of the past 5 years.
TGH had a positive operating cash flow in each of the past 5 years.
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 worse Return On Invested Capital (4.40%) than 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TGH is below the industry average of 9.42%.
| 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
TGH has a Profit Margin of 22.64%. This is amongst the best in the industry. TGH outperforms 98.04% of its industry peers.
In the last couple of years the Profit Margin of TGH has grown nicely.
Looking at the Operating Margin, with a value of 45.52%, TGH belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
TGH's Operating Margin has improved in the last couple of years.
TGH's Gross Margin of 88.30% is amongst the best of the industry. TGH outperforms 96.08% of its industry peers.
In the last couple of years the Gross Margin of TGH has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TGH is destroying value.
The number of shares outstanding for TGH has been reduced compared to 1 year ago.
TGH has less shares outstanding than it did 5 years 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'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.
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.
The Debt to FCF ratio of TGH (9.04) is comparable to the rest of the industry.
A Debt/Equity ratio of 2.34 is on the high side and indicates that TGH has dependencies on debt 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.
TGH has a worse Current ratio (1.16) 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.
The Quick ratio of TGH (1.16) 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
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
TGH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.35% yearly.
The Revenue is expected to grow by 3.35% on average over the next years.
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
TGH is valuated reasonably with a Price/Earnings ratio of 10.82.
Based on the Price/Earnings ratio, TGH is valued cheaper than 86.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of TGH to the average of the S&P500 Index (26.49), we can say TGH is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.12, the valuation of TGH can be described as very reasonable.
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.
When comparing the Price/Forward Earnings ratio of TGH to the average of the S&P500 Index (23.69), we can say 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 ratio is in line with 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.
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 2.97, 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 2.31.
| 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.
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
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.