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TEXTAINER GROUP HOLDINGS LTD (TGH) Stock Fundamental Analysis

NYSE:TGH - New York Stock Exchange, Inc. - BMG8766E1093 - Common Stock - Currency: USD

49.99  +0.02 (+0.04%)

After market: 49.991 0 (0%)

Fundamental Rating

5

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. There are concerns on the financial health of TGH while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on TGH.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year TGH was profitable.
In the past year TGH had a positive cash flow from operations.
Each year in the past 5 years TGH has been profitable.
In the past 5 years TGH always reported a positive cash flow from operatings.
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 2015 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.
Looking at the Return On Invested Capital, with a value of 4.40%, TGH is doing worse than 70.59% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TGH is below the industry average of 9.84%.
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 2015 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.
The Gross Margin of TGH (88.30%) is better than 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 40 60 80

3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TGH is destroying value.
The number of shares outstanding for TGH has been reduced compared to 1 year ago.
The number of shares outstanding for TGH has been reduced compared to 5 years ago.
Compared to 1 year ago, TGH has an improved debt to assets ratio.
TGH Yearly Shares OutstandingTGH Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.85, we must say that TGH is in the distress zone and 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.
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 of 9.04. This is comparable to the rest of the industry: TGH outperforms 52.94% of its industry peers.
TGH has a Debt/Equity ratio of 2.34. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TGH (2.34) is worse than 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 2015 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.
TGH's Current ratio of 1.16 is on the low side compared to the rest of the industry. TGH is outperformed by 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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

4

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.
TGH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.65%.
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

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.
TGH Yearly Revenue VS EstimatesTGH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 4 6

7

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.
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.
Compared to an average S&P500 Price/Earnings ratio of 26.99, TGH is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.12, the valuation of TGH can be described as very 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.
The average S&P500 Price/Forward Earnings ratio is at 36.36. TGH is valued rather cheaply when compared to this.
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as TGH.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TGH indicates a rather cheap valuation: TGH is cheaper than 96.08% of the companies listed 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

TGH's 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

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.
Compared to an average industry Dividend Yield of 2.05, 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 2.40.
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 2015 2016 2021 2022 2023 2024 0.5 1 1.5

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
TGH Yearly Income VS Free CF VS DividendTGH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 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

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 2024-02-13/bmo
Earnings (Next)04-30 2024-04-30/amc
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 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
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%
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 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%