TEXTAINER GROUP HOLDINGS LTD (TGH) Stock Fundamental Analysis
USA - NYSE:TGH - BMG8766E1093 - Common Stock
49.99 USD
+0.02 (+0.04%)
49.991 USD
0 (0%)
TGH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 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.
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
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.
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.
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 significantly below the industry average of 10.04%.
| 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's Profit Margin of 22.64% is amongst the best of the industry. TGH outperforms 98.04% of its industry peers.
In the last couple of years the Profit Margin of TGH has grown nicely.
TGH has a Operating Margin of 45.52%. This is amongst the best in the industry. TGH outperforms 96.08% of its industry peers.
TGH's Operating Margin has improved in the last couple of years.
TGH has a better Gross Margin (88.30%) 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.
TGH has less shares outstanding than it did 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.
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.
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.
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.
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 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.
The Revenue for TGH has decreased by -10.65% in the past year. This is quite bad
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
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 10.82, the valuation of TGH can be described as reasonable.
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 (26.91), 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.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TGH indicates a rather cheap valuation: TGH is cheaper than 90.20% of the companies listed in the same industry.
TGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, TGH is valued cheaply inside the industry as 96.08% of the companies are valued more expensively.
| 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
With a Yearly Dividend Yield of 2.40%, TGH has a reasonable but not impressive dividend return.
TGH's Dividend Yield is rather good when compared to the industry average which is at 1.80. 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 2.32.
| 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
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
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.