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

Fundamentals

Undervalued with acceptable 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


Market Performance


7 Day Return

2.0%

TCS

3.7%

US Specialty Retail

1.0%

US Market


1 Year Return

-56.5%

TCS

2.7%

US Specialty Retail

6.7%

US Market

Return vs Industry: TCS underperformed the US Specialty Retail industry which returned 2.7% over the past year.

Return vs Market: TCS underperformed the US Market which returned 6.7% over the past year.


Share holder returns

TCSIndustryMarket
7 Day2.0%3.7%1.0%
30 Day-8.2%0.04%-1.8%
90 Day-36.2%0.7%-1.8%
1 Year-56.5%-56.5%4.4%2.7%9.1%6.7%
3 Year-5.1%-5.1%40.0%32.8%46.1%36.6%
5 Year-74.2%-74.2%59.2%45.2%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: TCS ($4.49) is trading below our estimate of fair value ($5.32)

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


Price Based on Earnings

PE vs Industry: TCS is good value based on its PE Ratio (8.9x) compared to the Specialty Retail industry average (15.3x).

PE vs Market: TCS is good value based on its PE Ratio (8.9x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: TCS is good value based on its PEG Ratio (0.8x)


Price Based on Value of Assets

PB vs Industry: TCS is good value based on its PB Ratio (0.8x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

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

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: TCS's forecast earnings growth (10.7% per year) is above the savings rate (2.7%).

Earnings vs Market: TCS's earnings (10.7% per year) are forecast to grow slower than the US market (14.5% 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 (7.3% 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 Estimates


Future Return on Equity

High Future ROE: TCS's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

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

22.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TCS has become profitable over the past 5 years, growing earnings by 22.8% per year.

Accelerating Growth: TCS's earnings growth over the past year (19.7%) is below its 5-year average (22.8% per year).

Earnings vs Industry: TCS earnings growth over the past year (19.7%) exceeded the Specialty Retail industry 8.3%.


Return on Equity

High ROE: TCS's Return on Equity (9.3%) is considered low.


Return on Assets

ROA vs Industry: TCS's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: TCS has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Container Store Group's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets ($183.9M) do not cover its short term liabilities ($201.5M)

Long Term Liabilities: TCS's short term assets (183.9M) do not cover its long term liabilities (658.9M)


Debt to Equity History and Analysis

Debt Level: TCS's debt to equity ratio (110.8%) is considered high

Reducing Debt: TCS's debt to equity ratio has reduced from 188.1% to 110.8% over the past 5 years.

Debt Coverage: TCS's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: TCS's interest payments on its debt are not well covered by EBIT (2.1x coverage).


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 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of Container Store Group's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Melissa Reiff (64yo)

3.3yrs

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 ($USD2.49M) is about average for companies of similar size in the US market ($USD1.17M).

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


Management Age and Tenure

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: TCS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

6.1yrs

Average Tenure

60yo

Average Age

Experienced Board: TCS's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jodi Taylor (56yo)

    CFO, Administrative Officer & Secretary

    • Tenure: 11.8yrs
    • Compensation: US$1.21m
  • Eva Gordon (55yo)

    Executive Vice President of Stores & Employee Development

    • Tenure: 3.3yrs
  • John Gehre (49yo)

    Chief Merchandising Officer

    • Tenure: 1.3yrs
  • Melissa Reiff (64yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$2.49m
  • Jeffrey Miller

    Chief Accounting Officer & VP

    • Tenure: 0yrs
  • Melissa Collins (52yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 3.3yrs
  • John Thrailkill

    Executive Vice President of IT and Business Development

    • Tenure: 3.3yrs
  • Gretchen Ganc

    Executive Vice President of Strategy & Analytics

    • Tenure: 0.8yrs

Board Members

  • Jon Sokoloff (62yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$180.00k
  • Walter Robb (65yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$180.00k
  • Bob Jordan (58yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$200.00k
  • Tim Flynn (47yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$190.00k
  • Kris Galashan (41yo)

    Director

    • Tenure: 12.2yrs
    • Compensation: US$180.00k
  • Melissa Reiff (64yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$2.49m
  • Wendi Sturgis (52yo)

    Director

    • Tenure: 0.2yrs
  • Caryl Stern (61yo)

    Director

    • Tenure: 5yrs
    • Compensation: US$180.00k
  • Raj Sisodia (60yo)

    Director

    • Tenure: 6.1yrs
    • Compensation: US$190.00k

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$221.057m
  • Shares outstanding: 49.23m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:59
End of Day Share Price2019/10/11 00:00
Earnings2019/06/29
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.

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