TEXTAINER GROUP HOLDINGS LTD (TGH) Stock Fundamental Analysis
NYSE:TGH - BMG8766E1093 - Common Stock
49.99 USD
+0.02 (+0.04%)
49.991 USD
0 (0%)
Taking everything into account, TGH scores 5 out of 10 in our fundamental rating. TGH was compared to 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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.
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's Return On Invested Capital of 4.40% is on the low side compared to the rest of the industry. TGH is outperformed by 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 9.70%.
| 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'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 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.
TGH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TGH has been reduced compared to a year ago.
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.
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.
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
A Current Ratio of 1.16 indicates that TGH should not have too much problems paying its short term obligations.
TGH has a Current ratio of 1.16. This is amonst the worse of the industry: TGH underperforms 82.35% of its industry peers.
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
The earnings per share for TGH have decreased strongly by -24.63% in the last year.
The Earnings Per Share has been growing by 38.70% on average over the past years. This is a very strong growth
Looking at the last year, TGH shows a very negative growth in Revenue. The Revenue has decreased by -10.65% in the last year.
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.
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
A Price/Earnings ratio of 10.82 indicates a reasonable valuation of TGH.
TGH's Price/Earnings ratio is rather cheap when compared to the industry. TGH is cheaper than 86.27% of the companies in the same industry.
TGH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.14.
Based on the Price/Forward Earnings ratio of 10.12, the valuation of TGH can be described as 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 (22.80), 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.
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
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TGH has a very decent profitability rating, which 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 2.69. 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 2.34.
| Industry Rank | Sector 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
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%