NYSE:TG

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 (8.8x) is below the US market (18.4x)

Became profitable this year

Pays a reliable dividend of 2.33%

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: TG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

TG

1.6%

US Chemicals

1.5%

US Market


1 Year Return

17.9%

TG

-3.7%

US Chemicals

20.1%

US Market

Return vs Industry: TG exceeded the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: TG underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

TGIndustryMarket
7 Day-0.5%1.6%1.5%
30 Day-7.8%-1.2%1.4%
90 Day-4.5%0.2%8.7%
1 Year20.9%17.9%10.1%-3.7%22.7%20.1%
3 Year-1.5%-8.4%29.9%5.2%50.1%40.5%
5 Year7.4%-5.0%38.3%8.3%73.1%54.1%

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

Valuation

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

8.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TG ($20.57) is trading above our estimate of fair value ($7.91)

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


Price To Earnings Ratio

PE vs Industry: TG is good value based on its PE Ratio (8.8x) compared to the Chemicals industry average (22.2x).

PE vs Market: TG is good value based on its PE Ratio (8.8x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TG is good value based on its PB Ratio (1.7x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

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

24.3%

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

Growing Profit Margin: TG became profitable in the past.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: TG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.6%).


Return on Equity

High ROE: TG'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: TG's short term assets ($260.3M) exceed its short term liabilities ($154.4M).

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: TG'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?

2.33%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: TG's dividend (2.33%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: TG's dividend (2.33%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), TG'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

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

4.5yrs

Average management tenure


CEO

John Steitz (60yo)

0.9yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
John Steitz
President0.9yrsUS$92.62k0.16% $1.1m
D. Edwards
VP & CFO4.6yrsUS$1.26m0.13% $902.1k
Michael Schewel
VP, General Counsel & Corporate Secretary3.8yrsUS$1.22m0.11% $754.4k
J. Prince
President of Personal Care0yrsno datano data
Arijit DasGupta
President of Surface Protection4.5yrsno datano data
Jose Silveira
President of Flexible Packaging Films4.5yrsno datano data
Frasier Brickhouse
Corporate Treasurer & Controller0yrsUS$296.20k0.051% $350.7k
W. Hamilton
President of Bonnell Aluminum6.7yrsno datano data
Jennifer Aspell
President of Bright View Technologies4.5yrsno datano data

4.5yrs

Average Tenure

62.5yo

Average Age

Experienced Management: TG's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Steitz
President0.9yrsUS$92.62k0.16% $1.1m
John Gottwald
Chairman0.8yrsUS$2.54m19.1% $130.0m
Gregory Pratt
Lead Director2.8yrsUS$87.64k0.055% $372.5k
Thomas Snead
Independent Director7.1yrsUS$86.64k0.060% $405.5k
William Gottwald
Director23.1yrsUS$112.79k3.28% $22.3m
George Freeman
Independent Director8.8yrsUS$86.14k0.062% $424.0k
Kenneth Newsome
Independent Director6yrsUS$82.14k0.055% $372.5k
Carl Tack
Independent Director6yrsUS$84.64k0.055% $372.5k
Anne Waleski
Independent Director1.5yrsUS$23.64k0.013% $88.3k

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: TG's board of directors are considered experienced (6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Tredegar Corporation
  • Ticker: TG
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$680.978m
  • 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 Films, and Aluminum Extrusions segments. The PE Films segment offers personal care materials, such as apertured films and laminate materials for use in feminine hygiene products, baby diapers, and adult incontinence products under the ComfortAire, ComfortFeel, and FreshFeel brands; elastic materials for use as components for baby diapers, adult incontinence products, and feminine hygiene products under the ExtraFlex and FlexAire brands; and three-dimensional apertured film transfer layers for baby diapers and adult incontinence products under the AquiSoft, AquiDry, and AquiDry Plus brands. This segment also provides thin-gauge films for bathroom tissue and paper towels; polypropylene films for industrial applications, such as tape and automotive protection; single- and multi-layer surface protection films for protecting components of flat panel displays used in televisions, monitors, notebooks, smart phones, tablets, e-readers, and digital signage under the UltraMask, ForceField, ForceField PEARL, and Pearl A brands; and specialty film-based components for a range of LED based applications. The Flexible Packaging Films segment offers polyester-based films for food packaging and industrial applications under the Terphane and Sealphane brands. The Aluminum Extrusions segment produces soft-alloy and medium-strength aluminum extrusions primarily for building and construction, automotive, consumer durables, machinery and equipment, electrical, and distribution markets; and manufactures mill, anodized, and painted and fabricated aluminum extrusions to fabricators and distributors. Tredegar Corporation was founded in 1988 and is headquartered in Richmond, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:46
End of Day Share Price2020/02/14 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.