TEXTAINER GROUP HOLDINGS LTD (TGH) Fundamental Analysis & Valuation

NYSE:TGH • BMG8766E1093

Current stock price

49.99 USD
+0.02 (+0.04%)
At close:
49.991 USD
0 (0%)
After Hours:

This TGH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. TGH Profitability Analysis

1.1 Basic Checks

  • TGH had positive earnings in the past year.
  • TGH had a positive operating cash flow in the past year.
  • TGH had positive earnings in each of the past 5 years.
  • Each year in the past 5 years TGH had a positive operating cash flow.
TGH Yearly Net Income VS EBIT VS OCF VS FCFTGH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B

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'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 9.00%.
Industry RankSector 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%
TGH Yearly ROA, ROE, ROICTGH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

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.
  • 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 has a Gross Margin of 88.30%. This is amongst the best in 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 RankSector 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%
TGH Yearly Profit, Operating, Gross MarginsTGH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

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3

2. TGH Health Analysis

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.
  • The debt/assets ratio for TGH has been reduced compared to a year ago.
TGH Yearly Shares OutstandingTGH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
TGH Yearly Total Debt VS Total AssetsTGH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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.
  • Looking at the Altman-Z score, with a value of 0.85, TGH is doing worse than 86.27% of the companies in the same industry.
  • 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.
  • 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's Debt to Equity ratio of 2.34 is on the low side compared to the rest of the industry. TGH is outperformed by 72.55% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.34
Debt/FCF 9.04
Altman-Z 0.85
ROIC/WACC0.71
WACC6.21%
TGH Yearly LT Debt VS Equity VS FCFTGH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B

2.3 Liquidity

  • A Current Ratio of 1.16 indicates that TGH should not have too much problems paying 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.
  • TGH has a Quick ratio (1.16) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.16
TGH Yearly Current Assets VS Current LiabilitesTGH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TGH Growth Analysis

3.1 Past

  • The earnings per share for TGH have decreased strongly by -24.63% in the last year.
  • 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

  • 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.
  • 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.
TGH Yearly Revenue VS EstimatesTGH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
TGH Yearly EPS VS EstimatesTGH Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6

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7

4. TGH Valuation Analysis

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 cheaply inside the industry as 86.27% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of TGH to the average of the S&P500 Index (26.21), 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.
  • Based on the Price/Forward Earnings ratio, TGH is valued cheaper than 90.20% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, TGH is valued rather cheaply.
Industry RankSector Rank
PE 10.82
Fwd PE 10.12
TGH Price Earnings VS Forward Price EarningsTGH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 cheaper than 96.08% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.74
EV/EBITDA 10.16
TGH Per share dataTGH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. TGH Dividend Analysis

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 0.84. TGH pays more dividend than 86.27% of the companies in the same industry.
  • TGH's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector 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
TGH Yearly Dividends per shareTGH Yearly Dividends per shareYearly Dividends per share 2016 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

  • 38.39% of the earnings are spent on dividend by TGH. This is a low number and 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
TGH Yearly Income VS Free CF VS DividendTGH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B
TGH Dividend Payout.TGH Dividend Payout, showing the Payout Ratio.TGH Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

TGH Fundamentals: All Metrics, Ratios and Statistics

TEXTAINER GROUP HOLDINGS LTD

NYSE:TGH (3/13/2024, 8:04:00 PM)

After market: 49.991 0 (0%)

49.99

+0.02 (+0.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)02-13
Earnings (Next)04-30
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for TEXTAINER GROUP HOLDINGS LTD?

ChartMill assigns a fundamental rating of 5 / 10 to TGH.


Can you provide the valuation status for TEXTAINER GROUP HOLDINGS LTD?

ChartMill assigns a valuation rating of 7 / 10 to TEXTAINER GROUP HOLDINGS LTD (TGH). This can be considered as Undervalued.


What is the profitability of TGH stock?

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.


Is the dividend of TEXTAINER GROUP HOLDINGS LTD sustainable?

The dividend rating of TEXTAINER GROUP HOLDINGS LTD (TGH) is 5 / 10 and the dividend payout ratio is 38.39%.