NYSE:TCS

Stock Analysis Report

Container Store Group

Executive Summary

The Container Store Group, Inc. operates as a retailer of storage and organization products and solutions in the United States.


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Container Store Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.9%

TCS

1.7%

US Specialty Retail

0.06%

US Market


1 Year Return

-34.3%

TCS

18.8%

US Specialty Retail

19.3%

US Market

Return vs Industry: TCS underperformed the US Specialty Retail industry which returned 18.8% over the past year.

Return vs Market: TCS underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day4.9%1.7%0.06%
30 Day-3.8%2.3%1.7%
90 Day13.8%6.7%9.0%
1 Year-34.3%-34.3%20.6%18.8%21.8%19.3%
3 Year0%0%47.0%40.0%49.5%39.9%
5 Year-76.7%-76.7%49.9%37.8%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Container Store Group undervalued compared to its fair value and its price relative to the market?

22.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCS ($4.3) is trading below our estimate of fair value ($5.52)

Significantly Below Fair Value: TCS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TCS is good value based on its PE Ratio (11.8x) compared to the Specialty Retail industry average (16.2x).

PE vs Market: TCS is good value based on its PE Ratio (11.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TCS is good value based on its PB Ratio (0.8x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Container Store Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (23.9% per year) is above the savings rate (1.7%).

Earnings vs Market: TCS's earnings (23.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TCS's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TCS's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCS's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

How has Container Store Group performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (1.9%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: TCS has become profitable over the past 5 years, growing earnings by 6.8% per year.

Accelerating Growth: TCS's earnings growth over the past year (218.1%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: TCS earnings growth over the past year (218.1%) exceeded the Specialty Retail industry 6.4%.


Return on Equity

High ROE: TCS's Return on Equity (6.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Container Store Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets ($206.3M) exceed its short term liabilities ($196.5M).

Long Term Liabilities: TCS's short term assets ($206.3M) do not cover its long term liabilities ($677.6M).


Debt to Equity History and Analysis

Debt Level: TCS's debt to equity ratio (114%) is considered high.

Reducing Debt: TCS's debt to equity ratio has reduced from 178.9% to 114% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TCS's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: TCS is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: TCS is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Container Store Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TCS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TCS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TCS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TCS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TCS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Melissa Reiff (64yo)

3.6yrs

Tenure

US$2,488,113

Compensation

Ms. Melissa Reiff has been Chairman and President of The Container Store Group, Inc. since August 28, 2019. She has been the Chief Executive Officer of The Container Store Group, Inc. since July 01, 2016 a ...


CEO Compensation Analysis

Compensation vs Market: Melissa's total compensation ($USD2.49M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Melissa's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Melissa Reiff
Chairman3.6yrsUS$2.49m1.33% $2.8m
Jodi Taylor
CFO, Administrative Officer & Secretary12.2yrsUS$1.21m0.34% $712.5k
Jeffrey Miller
Chief Accounting Officer & VP0yrsno data0.059% $126.1k
Melissa Collins
Executive VP & Chief Marketing Officer3.6yrsno data0.090% $190.1k
John Thrailkill
Executive Vice President of IT and Business Development3.6yrsno datano data
Eva Gordon
Executive Vice President of Stores & Employee Development3.6yrsno datano data
John Gehre
Chief Merchandising Officer1.6yrsno data0.061% $130.1k
Gretchen Ganc
Executive Vice President of Strategy & Analytics1.2yrsno datano data

3.6yrs

Average Tenure

55yo

Average Age

Experienced Management: TCS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Melissa Reiff
Chairman3.6yrsUS$2.49m1.33% $2.8m
Jonathan Sokoloff
Independent Director12.5yrsUS$180.00k0.062% $132.3k
Walter Robb
Independent Director6.4yrsUS$180.00k0.075% $160.2k
Robert Jordan
Lead Director0yrsUS$200.00k0.12% $261.3k
Timothy Flynn
Independent Director12.5yrsUS$190.00k0.044% $92.9k
J. Galashan
Independent Director12.5yrsUS$180.00k0.062% $132.3k
Wendi Sturgis
Independent Director0.5yrsno data0.044% $92.9k
Caryl Stern
Independent Director5.3yrsUS$180.00k0.072% $153.1k
Rajendra Sisodia
Independent Director6.4yrsUS$190.00k0.084% $178.5k

6.4yrs

Average Tenure

60yo

Average Age

Experienced Board: TCS's board of directors are considered experienced (6.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

The Container Store Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Container Store Group, Inc.
  • Ticker: TCS
  • Exchange: NYSE
  • Founded: 1978
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$212.283m
  • Shares outstanding: 49.37m
  • Website: https://www.containerstore.com

Number of Employees


Location

  • The Container Store Group, Inc.
  • 500 Freeport Parkway
  • Coppell
  • Texas
  • 75019
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCSNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2013

Biography

The Container Store Group, Inc. operates as a retailer of storage and organization products and solutions in the United States. It operates in two segments, The Container Store and Elfa. The company offers approximately 10,000 products designed to help customers. Its merchandise category includes Custom Closets, including elfa and Laren branded products and installation services, as well as closet lifestyle department products; storage, long-term storage, and shelving; kitchen and trash; office, collections, and hooks; bath, travel, and laundry; gift packaging, seasonal, and impulse; and others. The company also designs, manufactures, and sells component-based shelving and drawer systems that are customizable for any area of the home, such as closets, kitchens, offices, and garages, as well as made-to-measure sliding doors. As of March 30, 2019, it operated 92 stores with an average size of approximately 25,000 square feet in 33 states and the District of Columbia. The company also operates a custom closet store; and offers its products directly to customers through its Website, responsive mobile site, and call center, as well as sells to various retailers and distributors, and on a wholesale basis. The Container Store Group, Inc. was founded in 1978 and is headquartered in Coppell, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:28
End of Day Share Price2020/02/20 00:00
Earnings2019/12/28
Annual Earnings2019/03/30


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.