DB:3T7

Stock Analysis Report

Textainer Group Holdings

Executive Summary

Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide.


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

How has Textainer Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3T7 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.4%

3T7

-7.3%

DE Trade Distributors

-5.7%

DE Market


1 Year Return

-12.1%

3T7

-0.9%

DE Trade Distributors

6.1%

DE Market

Return vs Industry: 3T7 underperformed the German Trade Distributors industry which returned -0.9% over the past year.

Return vs Market: 3T7 underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

3T7IndustryMarket
7 Day-6.4%-7.3%-5.7%
30 Day-4.9%-6.8%-5.7%
90 Day8.0%-7.8%-3.6%
1 Year-12.1%-12.1%2.0%-0.9%9.3%6.1%
3 Year-40.0%-40.0%-13.4%-19.6%8.9%-0.7%
5 Year-66.2%-69.4%-5.6%-15.8%13.6%-2.0%

Price Volatility Vs. Market

How volatile is Textainer Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Textainer Group Holdings undervalued compared to its fair value and its price relative to the market?

8.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 3T7's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 3T7's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3T7 is good value based on its PE Ratio (9x) compared to the Trade Distributors industry average (14.4x).

PE vs Market: 3T7 is good value based on its PE Ratio (9x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3T7 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 3T7 is good value based on its PB Ratio (0.4x) compared to the DE Trade Distributors industry average (1.2x).


Next Steps

Future Growth

How is Textainer Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3T7's forecast earnings growth (5.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3T7's earnings (5.2% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: 3T7's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3T7's revenue (1.3% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: 3T7's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3T7's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Textainer Group Holdings performed over the past 5 years?

-29.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3T7 has high quality earnings.

Growing Profit Margin: 3T7's current net profit margins (8%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 3T7's earnings have declined by -29.1% per year over the past 5 years.

Accelerating Growth: 3T7's earnings growth over the past year (12.6%) exceeds its 5-year average (-29.1% per year).

Earnings vs Industry: 3T7 earnings growth over the past year (12.6%) underperformed the Trade Distributors industry 20.1%.


Return on Equity

High ROE: 3T7's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Textainer Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 3T7's short term assets ($421.3M) exceed its short term liabilities ($271.3M).

Long Term Liabilities: 3T7's short term assets ($421.3M) do not cover its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: 3T7's debt to equity ratio (295.5%) is considered high.

Reducing Debt: 3T7's debt to equity ratio has increased from 239.4% to 295.5% over the past 5 years.

Debt Coverage: 3T7's debt is not well covered by operating cash flow (11.3%).

Interest Coverage: 3T7's interest payments on its debt are not well covered by EBIT (1.4x coverage).


Balance Sheet

Inventory Level: 3T7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3T7's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Textainer Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.8%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3T7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3T7's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3T7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3T7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3T7 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3T7's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Olivier Ghesquiere (52yo)

1.5yrs

Tenure

0

Mr. Olivier Ghesquiere has been President, Chief Executive Officer and Director of Textainer Group Holdings Limited since August 13, 2018. Mr. Ghesquiere served as an Executive Vice President of Leasing a ...


Leadership Team

NamePositionTenureCompensationOwnership
Olivier Ghesquiere
President1.5yrsno data0.021% $106.3k
Michael Chan
Executive VP & CFO1.4yrsno data0.0037% $18.6k
Joaquim Figueira
Vice President of Operations and Procurement1.4yrsno datano data
Gregory Coan
Senior VP & Chief Information Officer0yrsno datano data
Daniel Cohen
VP & General Counsel0yrsno datano data
Philippe Wendling
Senior Vice President of Marketing0.9yrsno datano data
Adam Hopkin
Company Secretary0yrsno datano data

1.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 3T7's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Olivier Ghesquiere
President1.5yrsno data0.021% $106.3k
Hendrik van der Merwe
Director2.5yrsno data0.0012% $6.1k
David Nurek
Independent Director12.4yrsno data0.029% $146.3k
Robert Pedersen
Director2.8yrsno data0.35% $1.7m
John Maccarone
Independent Director26.2yrsno data2.64% $13.1m
Dudley Cottingham
Independent Director26.2yrsno data0.035% $172.5k
Hyman Shwiel
Chairman of the Board3.8yrsno data0.038% $190.0k
Iain Brown
Director3.8yrsno data0.017% $84.1k

3.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 3T7's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Textainer Group Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Textainer Group Holdings Limited
  • Ticker: 3T7
  • Exchange: DB
  • Founded: 1979
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$540.907m
  • Listing Market Cap: US$497.201m
  • Shares outstanding: 56.82m
  • Website: https://www.textainer.com

Number of Employees


Location

  • Textainer Group Holdings Limited
  • Century House
  • 16 Par-la-Ville Road
  • Hamilton
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGHNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 2007
3T7DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2007
TXTJSE (The Johannesburg Securities Exchange)YesCommon SharesZAZAROct 2007

Biography

Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. It operates through three segments: Container Ownership, Container Management, and Container Resale. The company owns and leases standard dry freight containers, refrigerated, and other special-purpose containers. It also provides container management, acquisition, and disposal services to affiliated and unaffiliated container investors. In addition, the company sells containers from its fleet, as well as purchases, leases, or resells containers from shipping line customers, container traders, and other sellers of containers. It operates a fleet of approximately 2.2 million containers, representing 3.4 million twenty-foot equivalent units. The company primarily serves shipping lines, as well as freight forwarding companies and the United States military. Textainer Group Holdings Limited was founded in 1979 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:18
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.