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. TGH has a medium profitability rating, but doesn't score so well on its financial health evaluation. TGH is valued quite cheap, while showing a decent growth score. This is a good 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.
Each year in the past 5 years TGH has been profitable.
TGH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TGH's Return On Assets of 2.61% is on the low side compared to the rest of the industry. TGH is outperformed by 64.71% of its industry peers.
TGH has a Return On Equity of 9.33%. This is in the lower half of the industry: TGH underperforms 62.75% of its industry peers.
With a Return On Invested Capital value of 4.40%, TGH is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TGH is below the industry average of 9.62%.
| 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 better Profit Margin (22.64%) than 98.04% of its industry peers.
TGH's Profit Margin has improved in the last couple of years.
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.
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.
TGH has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TGH has less shares outstanding
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 worse Altman-Z score (0.85) 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's Debt to FCF ratio of 9.04 is in line compared to the rest of the industry. TGH outperforms 52.94% of 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 Debt to Equity ratio of 2.34. This is in the lower half of the industry: TGH underperforms 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
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.
With a Current ratio value of 1.16, TGH is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.16, TGH is in line with its industry, outperforming 56.86% of the companies in the same 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%.
TGH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 38.70% yearly.
Looking at the last year, TGH shows a very negative growth in Revenue. The Revenue has decreased by -10.65% in the last year.
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.
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.
Compared to the rest of the industry, the Price/Earnings ratio of TGH indicates a rather cheap valuation: TGH is cheaper than 86.27% of the companies listed in the same industry.
TGH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
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.
When comparing the Price/Forward Earnings ratio of TGH to the average of the S&P500 Index (21.76), we can say TGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.82 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TGH is on the same level as its industry peers.
96.08% of the companies in the same industry are more expensive than TGH, based on the Price/Free Cash Flow ratio.
| 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.
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%. Purely for dividend investing, there may be better candidates out there.
TGH's Dividend Yield is rather good when compared to the industry average which is at 2.01. TGH pays more dividend than 86.27% of the companies in the same industry.
TGH's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| 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
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%