NYSE:TCS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Container Store Group

Market Cap

US$531.5m

Last Updated

2021/07/31 06:32 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record and good value.


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 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.


Market Performance


7 Day Return

-1.6%

TCS

-0.8%

US Specialty Retail

-0.5%

US Market


1 Year Return

204.9%

TCS

65.7%

US Specialty Retail

35.9%

US Market

Return vs Industry: TCS exceeded the US Specialty Retail industry which returned 65.7% over the past year.

Return vs Market: TCS exceeded the US Market which returned 35.9% over the past year.


Shareholder returns

TCSIndustryMarket
7 Day-1.6%-0.8%-0.5%
30 Day-19.7%-0.1%0.3%
90 Day-25.3%0.6%3.1%
1 Year204.9%204.9%66.9%65.7%38.0%35.9%
3 Year-3.5%-3.5%93.0%86.2%62.9%52.7%
5 Year90.2%90.2%110.3%96.1%121.7%97.3%

Long-Term 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?

5.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCS ($10.52) is trading below our estimate of fair value ($11.15)

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


Price To Earnings Ratio

PE vs Industry: TCS is good value based on its PE Ratio (8.8x) compared to the US Specialty Retail industry average (13.6x).

PE vs Market: TCS is good value based on its PE Ratio (8.8x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: TCS is good value based on its PB Ratio (1.5x) compared to the US Specialty Retail industry average (3.2x).


Future Growth

How is Container Store Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (3.6% per year) is above the savings rate (2%).

Earnings vs Market: TCS's earnings (3.6% per year) are forecast to grow slower than the US market (14.9% per year).

High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCS's revenue (3.8% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TCS's revenue (3.8% 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 (12.3%).


Past Performance

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

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (5.9%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: TCS's earnings growth over the past year (326.7%) exceeds its 5-year average (26.9% per year).

Earnings vs Industry: TCS earnings growth over the past year (326.7%) exceeded the Specialty Retail industry 157.5%.


Return on Equity

High ROE: TCS's Return on Equity (16.5%) is considered low.


Financial Health

How is Container Store Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets ($203.3M) do not cover its short term liabilities ($214.9M).

Long Term Liabilities: TCS's short term assets ($203.3M) do not cover its long term liabilities ($509.9M).


Debt to Equity History and Analysis

Debt Level: TCS's debt to equity ratio (46.8%) is considered high.

Reducing Debt: TCS's debt to equity ratio has reduced from 158% to 46.8% over the past 5 years.

Debt Coverage: TCS's debt is well covered by operating cash flow (83.5%).

Interest Coverage: TCS's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

What is Container Store Group 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 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.


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?

0.9yrs

Average management tenure


CEO

Satish Malhotra (46 yo)

0.33

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 ($USD2.17M) is about average for companies of similar size in the US market ($USD1.72M).

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 ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: TCS's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCS 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 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$531.545m
  • Shares outstanding: 50.53m
  • Website: https://www.containerstore.com

Number of Employees


Location

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

Listings


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 provid...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 06:32
End of Day Share Price2021/07/30 00:00
Earnings2021/04/03
Annual Earnings2021/04/03


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.