DB:T70

Stock Analysis Report

Executive Summary

Tredegar Corporation, through its subsidiaries, manufactures and sells polyethylene (PE) plastic films, polyester films, and aluminum extrusions worldwide.

Rewards

PE ratio (9.6x) is below the German market (20.8x)

Became profitable this year

Pays a reliable dividend of 2.13%

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Tredegar's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: T70 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

T70

1.2%

DE Chemicals

0.7%

DE Market


1 Year Return

37.8%

T70

13.1%

DE Chemicals

15.1%

DE Market

Return vs Industry: T70 exceeded the German Chemicals industry which returned 13.1% over the past year.

Return vs Market: T70 exceeded the German Market which returned 15.1% over the past year.


Shareholder returns

T70IndustryMarket
7 Day5.3%1.2%0.7%
30 Day4.2%-3.9%-0.7%
90 Day21.1%3.6%5.9%
1 Year41.6%37.8%17.5%13.1%18.7%15.1%
3 Year-4.8%-11.5%-7.1%-15.9%19.2%8.6%
5 Year43.6%27.4%24.5%5.5%39.0%20.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Tredegar undervalued compared to its fair value and its price relative to the market?

9.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: T70 (€20) is trading above our estimate of fair value (€7.84)

Significantly Below Fair Value: T70 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: T70 is good value based on its PE Ratio (9.6x) compared to the Chemicals industry average (21.4x).

PE vs Market: T70 is good value based on its PE Ratio (9.6x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate T70's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: T70 is good value based on its PB Ratio (1.9x) compared to the DE Chemicals industry average (1.9x).


Next Steps

Future Growth

How is Tredegar forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-10.0%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Tredegar has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Tredegar performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T70 has a large one-off gain of $22.0M impacting its September 30 2019 financial results.

Growing Profit Margin: T70 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: T70's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: T70 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: T70 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-10.8%).


Return on Equity

High ROE: T70's Return on Equity (19.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tredegar's financial position?


Financial Position Analysis

Short Term Liabilities: T70's short term assets ($260.3M) exceed its short term liabilities ($154.4M).

Long Term Liabilities: T70's short term assets ($260.3M) exceed its long term liabilities ($178.7M).


Debt to Equity History and Analysis

Debt Level: T70's debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: T70's debt to equity ratio has reduced from 33.5% to 17.1% over the past 5 years.

Debt Coverage: T70's debt is well covered by operating cash flow (134%).

Interest Coverage: T70 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: T70 has a high level of physical assets or inventory.

Debt Coverage by Assets: T70's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Tredegar's current dividend yield, its reliability and sustainability?

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.6%industryaverage4.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: T70's dividend (2.13%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: T70's dividend (2.13%) is low compared to the top 25% of dividend payers in the German market (3.61%).


Stability and Growth of Payments

Stable Dividend: T70's dividends per share have been stable in the past 10 years.

Growing Dividend: T70's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), T70's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Tredegar's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

John Steitz (60yo)

0.8yrs

Tenure

US$92,618

Compensation

Mr. John M. Steitz has been the Chief Executive Officer and President of Tredegar Corporation since March 19, 2019. He was Chief Executive Officer of Additives at SI Group, Inc. since December 2018 until F ...


Management Age and Tenure

4.3yrs

Average Tenure

62.5yo

Average Age

Experienced Management: T70's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: T70's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$21,27701 Aug 19
GAMCO Investors, Inc.
EntityCompany
Shares1,400
Max PriceUS$15.20
SellUS$5,084,30101 Aug 19
GAMCO Investors, Inc.
EntityCompany
Shares332,862
Max PriceUS$15.27
BuyUS$14,17328 May 19
Anne Waleski
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$14.17
BuyUS$5,02017 May 19
GAMCO Investors, Inc.
EntityCompany
Shares409
Max PriceUS$16.23
SellUS$526,37617 May 19
GAMCO Investors, Inc.
EntityCompany
Shares195,673
Max PriceUS$16.94

Ownership Breakdown

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


Management Team

  • D. Edwards (60yo)

    VP & CFO

    • Tenure: 4.4yrs
    • Compensation: US$1.26m
  • John Steitz (60yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$92.62k
  • Frasier Brickhouse (82yo)

    Corporate Treasurer & Controller

    • Tenure: 0yrs
    • Compensation: US$296.20k
  • Mike Schewel (65yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 3.6yrs
    • Compensation: US$1.22m
  • Jennifer Aspell

    President of Bright View Technologies

    • Tenure: 4.3yrs
  • W. Hamilton

    President of Bonnell Aluminum

    • Tenure: 6.5yrs
  • J. Prince

    President of Personal Care

    • Tenure: 0yrs
  • Bapi DasGupta

    President of Surface Protection

    • Tenure: 4.3yrs
  • Jose Silveira

    President of Flexible Packaging Films

    • Tenure: 4.3yrs

Board Members

  • John Gottwald (64yo)

    Chairman

    • Tenure: 0.6yrs
    • Compensation: US$2.54m
  • Greg Pratt (70yo)

    Lead Director

    • Tenure: 2.6yrs
    • Compensation: US$87.64k
  • Tom Snead (65yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$86.64k
  • William Gottwald (71yo)

    Director

    • Tenure: 22.9yrs
    • Compensation: US$112.79k
  • John Steitz (60yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$92.62k
  • George Freeman (56yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$86.14k
  • Ken Newsome (59yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$82.14k
  • Carl Tack (63yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$84.64k
  • Anne Waleski (52yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$23.64k

Company Information

Tredegar Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tredegar Corporation
  • Ticker: T70
  • Exchange: DB
  • Founded: 1988
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$745.202m
  • Listing Market Cap: US$671.651m
  • Shares outstanding: 33.11m
  • Website: https://www.tredegar.com

Number of Employees


Location

  • Tredegar Corporation
  • 1100 Boulders Parkway
  • Richmond
  • Virginia
  • 23225
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1989
T70DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1989

Biography

Tredegar Corporation, through its subsidiaries, manufactures and sells polyethylene (PE) plastic films, polyester films, and aluminum extrusions worldwide. It operates through PE Films, Flexible Packaging  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 21:57
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.