Textainer Group Holdings Limited

NYSE:TGH Stock Report

Market Cap: US$2.1b

Textainer Group Holdings Valuation

Is TGH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TGH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TGH ($49.99) is trading above our estimate of fair value ($22.02)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TGH?

Key metric: As TGH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TGH. This is calculated by dividing TGH's market cap by their current earnings.
What is TGH's PE Ratio?
PE Ratio11.2x
EarningsUS$184.80m
Market CapUS$2.07b

Price to Earnings Ratio vs Peers

How does TGH's PE Ratio compare to its peers?

The above table shows the PE ratio for TGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.7x
HEES H&E Equipment Services
13.9x1.5%US$2.0b
VRTV Veritiv
8.5xn/aUS$2.3b
DNOW DNOW
7.7x-12.7%US$1.5b
MGRC McGrath RentCorp
12.9x-22.2%US$2.9b
TGH Textainer Group Holdings
11.2x11.6%US$2.1b

Price-To-Earnings vs Peers: TGH is good value based on its Price-To-Earnings Ratio (11.2x) compared to the peer average (12.8x).

Price to Earnings Ratio vs Industry

How does TGH's PE Ratio compare vs other companies in the US Trade Distributors Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BYU BAIYU Holdings
0.8xn/aUS$9.09m
No more companies available in this PE range
TGH 11.2xIndustry Avg. 16.9xNo. of Companies7PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TGH is good value based on its Price-To-Earnings Ratio (11.2x) compared to the US Trade Distributors industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is TGH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.2x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: TGH is good value based on its Price-To-Earnings Ratio (11.2x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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