NYSE:TG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$430.4m

Last Updated

2021/07/29 00:46 UTC

Data Sources

Company Financials

Executive Summary

Tredegar Corporation, through its subsidiaries, manufactures and sells aluminum extrusions, PE Films, and polyester films in the United States and internationally. More Details


Snowflake Analysis

Average dividend payer with mediocre balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

TG

2.2%

US Chemicals

0.9%

US Market


1 Year Return

-21.5%

TG

32.3%

US Chemicals

37.8%

US Market

Return vs Industry: TG underperformed the US Chemicals industry which returned 32.3% over the past year.

Return vs Market: TG underperformed the US Market which returned 37.8% over the past year.


Shareholder returns

TGIndustryMarket
7 Day1.8%2.2%0.9%
30 Day-4.7%0.06%0.3%
90 Day-13.1%-2.0%2.1%
1 Year13.9%-21.5%34.8%32.3%40.0%37.8%
3 Year-23.4%-49.9%39.4%18.6%63.8%53.5%
5 Year20.6%-24.8%97.7%59.1%124.6%99.7%

Long-Term 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?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TG ($12.87) is trading below our estimate of fair value ($15.85)

Significantly Below Fair Value: TG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TG is poor value based on its PE Ratio (32x) compared to the US Chemicals industry average (24.8x).

PE vs Market: TG is poor value based on its PE Ratio (32x) 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 overvalued based on its PB Ratio (3.7x) compared to the US Chemicals industry average (2.9x).


Future Growth

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

12.8%

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.


Past Performance

How has Tredegar performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TG has a large one-off loss of $52.1M impacting its March 31 2021 financial results.

Growing Profit Margin: TG's current net profit margins (1.8%) are lower than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: TG has become profitable over the past 5 years, growing earnings by 1.4% per year.

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

Earnings vs Industry: TG had negative earnings growth (-25.3%) over the past year, making it difficult to compare to the Chemicals industry average (23%).


Return on Equity

High ROE: TG's Return on Equity (11.6%) is considered low.


Financial Health

How is Tredegar's financial position?


Financial Position Analysis

Short Term Liabilities: TG's short term assets ($200.1M) exceed its short term liabilities ($137.6M).

Long Term Liabilities: TG's short term assets ($200.1M) do not cover its long term liabilities ($268.9M).


Debt to Equity History and Analysis

Debt Level: TG's debt to equity ratio (123.3%) is considered high.

Reducing Debt: TG's debt to equity ratio has increased from 36.6% to 123.3% over the past 5 years.

Debt Coverage: TG's debt is well covered by operating cash flow (48.4%).

Interest Coverage: TG's interest payments on its debt are well covered by EBIT (27.4x coverage).


Balance Sheet


Dividend

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

3.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TG's dividend (3.73%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: TG's dividend (3.73%) is in the top 25% of dividend payers in the US market (3.53%)


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 high payout ratio (119.3%), TG'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

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

5.9yrs

Average management tenure


CEO

John Steitz (62 yo)

2.33yrs

Tenure

US$5,031,163

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...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.03M) is above average for companies of similar size in the US market ($USD1.73M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: TG's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: TG's board of directors are considered experienced (7.3 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: 1955
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$430.404m
  • Shares outstanding: 33.44m
  • Website: https://www.tredegar.com

Number of Employees


Location

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

Listings


Biography

Tredegar Corporation, through its subsidiaries, manufactures and sells aluminum extrusions, PE Films, and polyester films in the United States and internationally. It operates through Aluminum Extrusions, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/29 00:46
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.