LSE:TXH

Stock Analysis Report

Executive Summary

Tex Holdings plc manufactures and supplies proprietary piling equipment, generators, engineering products, plastic injection molding and tooling procurement, and boards and panels in Eurozone, the United Kingdom, the United States, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

TXH

-2.7%

GB Machinery

-0.4%

GB Market


1 Year Return

-42.7%

TXH

-2.2%

GB Machinery

2.9%

GB Market


Shareholder returns

TXHIndustryMarket
7 Day0%-2.7%-0.4%
30 Day0%-7.6%-1.4%
90 Day0%-9.3%-2.1%
1 Year-41.4%-42.7%0.7%-2.2%7.9%2.9%
3 Year-21.9%-32.7%18.1%9.4%18.0%3.6%
5 Year21.1%-18.9%23.0%6.3%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TXH (£0.73) is trading below our estimate of fair value (£13.91)

Significantly Undervalued: TXH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TXH is good value based on its PE Ratio (9.6x) compared to the Machinery industry average (17.7x).

PE vs Market: TXH is good value based on its PE Ratio (9.6x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TXH is good value based on its PB Ratio (0.4x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TXH's forecast earnings growth (15.6% per year) is above the savings rate (1.2%).

Earnings vs Market: TXH's earnings (15.6% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: Insufficient data to determine if TXH's revenue is forecast to grow faster than the UK market.

High Growth Revenue: Insufficient data to determine if TXH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Tex Holdings performed over the past 5 years?

-42.8%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if TXH's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: TXH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TXH had negative earnings growth (-42.8%) over the past year, making it difficult to compare to the Machinery industry average (8%).


Return on Equity

High ROE: TXH's Return on Equity (4.5%) is considered low.


Return on Assets

ROA vs Industry: TXH's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: TXH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tex Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TXH's short term assets (£19.1M) exceeds its short term liabilities (£13.5M)

Long Term Liabilities: TXH's short term assets (19.1M) exceeds its long term liabilities (2.1M)


Debt to Equity History and Analysis

Debt Level: TXH's debt to equity ratio (43.4%) is considered high

Reducing Debt: TXH's debt to equity ratio has reduced from 62.7% to 43.4% over the past 5 years.

Debt Coverage: TXH's debt is well covered by operating cash flow (55.1%).

Interest Coverage: TXH's interest payments on its debt are well covered by EBIT (7.6x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

11.64%

Current Dividend Yield


Dividend Yield vs Market

company11.6%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TXH's dividend (11.64%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: TXH's dividend (11.64%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: TXH's dividend payments have been volatile in the past 10 years.

Growing Dividend: TXH's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.8%), TXH's dividend payments are not 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 Tex Holdings's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average board tenure


CEO

Tex Holdings has no CEO, or we have no data on them.


Board Age and Tenure

4.5yrs

Average Tenure

73.5yo

Average Age

Experienced Board: TXH's board of directors are considered experienced (4.5 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.


Ownership Breakdown


Management Team

  • Christopher Parker (57yo)

    Company Secretary & Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£107.93k
  • David Redhead (72yo)

    Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£45.76k

Board Members

  • Christopher Palmer-Tomkinson (77yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£20.00k
  • Christopher Parker (57yo)

    Company Secretary & Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£107.93k
  • David Redhead (72yo)

    Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£45.76k
  • A. Richard Burrows (81yo)

    Non-Executive Chairman

    • Tenure: 0.5yrs
    • Compensation: UK£3.86k
  • Christopher Varley (70yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: UK£43.81k
  • Chris Gray (75yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£6.37k

Company Information

Tex Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tex Holdings plc
  • Ticker: TXH
  • Exchange: LSE
  • Founded: 1946
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£4.637m
  • Shares outstanding: 6.35m
  • Website: https://www.tex-holdings.co.uk

Number of Employees


Location

  • Tex Holdings plc
  • Claydon Business Park
  • Gipping Road
  • Ipswich
  • Suffolk
  • IP6 0NL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TXHLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992

Biography

Tex Holdings plc manufactures and supplies proprietary piling equipment, generators, engineering products, plastic injection molding and tooling procurement, and boards and panels in Eurozone, the United K ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/28 20:36
End of Day Share Price2019/04/30 00:00
Earnings2018/06/30
Annual Earnings2017/12/31


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.