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TCS

Container Store Group NYSE:TCS Stock Report

Last Price

US$7.72

Market Cap

US$383.2m

7D

13.0%

1Y

-33.7%

Updated

18 May, 2022

Data

Company Financials +
TCS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health5/6
Dividends0/6

TCS Stock Overview

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

Container Store Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Container Store Group
Historical stock prices
Current Share PriceUS$7.72
52 Week HighUS$14.25
52 Week LowUS$6.70
Beta1.23
1 Month Change-3.62%
3 Month Change-13.26%
1 Year Change-33.73%
3 Year Change-1.41%
5 Year Change40.36%
Change since IPO-78.16%

Recent News & Updates

May 05
Container Store Group's (NYSE:TCS) Returns On Capital Are Heading Higher

Container Store Group's (NYSE:TCS) Returns On Capital Are Heading Higher

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Mar 25

The Container Store: Opening The Box

Shares of The Container Store have lost more than half their value in the past year after rising ~900% in the year leading up to the decline. Management will have a hard time changing perceptions that the pandemic was simply a pull-forward of its sales – as comps turn negative. Trading at an EV-to-EBITDA of 3.2 and a price-to-sales of under 0.4, the recent insider buying after a 25% selloff post-3QFY21 earnings merited a deeper dive. A full investment analysis follows in the paragraphs below.

Shareholder Returns

TCSUS Specialty RetailUS Market
7D13.0%0.2%0.5%
1Y-33.7%-24.9%-11.5%

Return vs Industry: TCS underperformed the US Specialty Retail industry which returned -23% over the past year.

Return vs Market: TCS underperformed the US Market which returned -8.1% over the past year.

Price Volatility

Is TCS's price volatile compared to industry and market?
TCS volatility
TCS Average Weekly Movement6.9%
Specialty Retail Industry Average Movement8.3%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

Stable Share Price: TCS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TCS's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19783,650Satish Malhotrahttps://www.containerstore.com

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 provides approximately 11,000 products designed to help customers.

Container Store Group Fundamentals Summary

How do Container Store Group's earnings and revenue compare to its market cap?
TCS fundamental statistics
Market CapUS$383.19m
Earnings (TTM)US$81.72m
Revenue (TTM)US$1.09b

4.7x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCS income statement (TTM)
RevenueUS$1.09b
Cost of RevenueUS$457.88m
Gross ProfitUS$636.24m
Other ExpensesUS$554.52m
EarningsUS$81.72m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.65
Gross Margin58.15%
Net Profit Margin7.47%
Debt/Equity Ratio37.9%

How did TCS perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TCS ($7.72) is trading below our estimate of fair value ($123.99)

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 (4.7x) compared to the US Specialty Retail industry average (6.7x).

PE vs Market: TCS is good value based on its PE Ratio (4.7x) compared to the US market (16x).


Price to Earnings Growth Ratio

PEG Ratio: TCS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TCS is good value based on its PB Ratio (0.9x) compared to the US Specialty Retail industry average (2x).


Future Growth

How is Container Store Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's earnings are forecast to decline over the next 3 years (-1.6% per year).

Earnings vs Market: TCS's earnings are forecast to decline over the next 3 years (-1.6% per year).

High Growth Earnings: TCS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TCS's revenue (3% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: TCS's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TCS's Return on Equity is forecast to be high in 3 years time


Past Performance

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

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


44.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (7.5%) are higher than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: TCS's earnings growth over the past year (40.8%) is below its 5-year average (44.3% per year).

Earnings vs Industry: TCS earnings growth over the past year (40.8%) underperformed the Specialty Retail industry 82.9%.


Return on Equity

High ROE: TCS's Return on Equity (19.1%) is considered low.


Financial Health

How is Container Store Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TCS's short term assets ($260.4M) exceed its short term liabilities ($235.5M).

Long Term Liabilities: TCS's short term assets ($260.4M) do not cover its long term liabilities ($534.0M).


Debt to Equity History and Analysis

Debt Level: TCS's net debt to equity ratio (34.6%) is considered satisfactory.

Reducing Debt: TCS's debt to equity ratio has reduced from 143.2% to 37.9% over the past 5 years.

Debt Coverage: TCS's debt is well covered by operating cash flow (35.1%).

Interest Coverage: TCS's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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 recent payouts.

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TCS has not reported any payouts.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Satish Malhotra (46 yo)

1.25yrs

Tenure

US$2,171,199

Compensation

Mr. Satish Malhotra has been Chief Executive Officer and President of The Container Store Group, Inc. since February 1, 2021 and serves its Director. Mr. Malhotra served as the Chief Retail and Operating O...


CEO Compensation Analysis

Compensation vs Market: Satish's total compensation ($USD2.17M) is about average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Insufficient data to compare Satish's compensation with company performance.


Leadership Team

Experienced Management: TCS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TCS's board of directors are considered experienced (5.2 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

The Container Store Group, Inc.'s 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
  • Implied Market Cap: US$383.186m
  • Shares outstanding: 49.64m
  • Website: https://www.containerstore.com

Number of Employees


Location

  • The Container Store Group, Inc.
  • 500 Freeport Parkway
  • Coppell
  • Texas
  • 75019-3863
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/18 00:00
End of Day Share Price2022/05/18 00:00
Earnings2022/04/02
Annual Earnings2022/04/02


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.