The Container Store Group, Inc.

OTCPK:TCSG.Q Stock Report

Market Cap: US$690.3k

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Container Store Group Management

Management criteria checks 3/4

Container Store Group's CEO is Satish Malhotra, appointed in Feb 2021, has a tenure of 3.92 years. total yearly compensation is $1.55M, comprised of 56.7% salary and 43.3% bonuses, including company stock and options. directly owns 1.63% of the company’s shares, worth $11.25K. The average tenure of the management team and the board of directors is 3.9 years and 3.3 years respectively.

Key information

Satish Malhotra

Chief executive officer

US$1.6m

Total compensation

CEO salary percentage56.66%
CEO tenure3.9yrs
CEO ownership1.6%
Management average tenure3.9yrs
Board average tenure3.3yrs

Recent management updates

Recent updates

Analysis Article • Sep 04

Is It Too Late To Consider Buying The Container Store Group, Inc. (NYSE:TCS)?

The Container Store Group, Inc. ( NYSE:TCS ), might not be a large cap stock, but it saw a significant share price rise...
Analysis Article • May 29

Container Store Group (NYSE:TCS) Seems To Be Using A Lot Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Apr 19

Returns On Capital At Container Store Group (NYSE:TCS) Paint A Concerning Picture

There are a few key trends to look for if we want to identify the next multi-bagger. Firstly, we'd want to identify a...
Analysis Article • Feb 08

These 4 Measures Indicate That Container Store Group (NYSE:TCS) Is Using Debt In A Risky Way

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Seeking Alpha • Dec 28

The Container Store: I'm Expecting More Than Wall Street

Summary Container Store Group sells organizing solutions ranging from storage bins to hangers. The company's sales have decreased after a pandemic boost, also pressuring margins due to a large amount of fixed costs. Wall Street analysts have low expectations for the company's financial recovery, below my baseline estimates. The current valuation seems to provide a good upside in the case that a financial recovery happens. Read the full article on Seeking Alpha
Analysis Article • Dec 27

What The Container Store Group, Inc.'s (NYSE:TCS) 29% Share Price Gain Is Not Telling You

The Container Store Group, Inc. ( NYSE:TCS ) shareholders have had their patience rewarded with a 29% share price jump...
Analysis Article • Dec 05

Returns On Capital Signal Tricky Times Ahead For Container Store Group (NYSE:TCS)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...
Analysis Article • Oct 26

Calculating The Fair Value Of The Container Store Group, Inc. (NYSE:TCS)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Container Store Group fair value estimate is US$2.20 With...
Seeking Alpha • Oct 13

The Container Store: 3D Testing, Lower Costs, And Undervalued

Summary The Container Store Group, Inc. is undervalued but has taken steps to lower expenses and enact a stock repurchase program. The company offers storage and space management services to homeowners and has a national reach within the United States. Analysts expect positive net sales growth and improved financial figures in 2025 and 2026, which could lead to an improvement in stock performance. Read the full article on Seeking Alpha
Seeking Alpha • Sep 26

The Container Store: High Returns Possible For Investors Willing To Deal With Volatility

Summary The Container Store is facing both short-term and long-term concerns. I think bankruptcy risks are low, which provides some downside protection at the stock’s current price. Over the next 12-24 months, I think TCS stock could trade between $5 and $9.50 in a bull case and at $1.40 in a bear case. I’ll discuss the reasoning behind these price targets and provide an overview of the business and its past financial results. Read the full article on Seeking Alpha
Analysis Article • Sep 23

Is It Time To Consider Buying The Container Store Group, Inc. (NYSE:TCS)?

The Container Store Group, Inc. ( NYSE:TCS ), is not the largest company out there, but it received a lot of attention...
Analysis Article • Aug 25

These 4 Measures Indicate That Container Store Group (NYSE:TCS) Is Using Debt In A Risky Way

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Seeking Alpha • Aug 22

The Container Store: Weak Sales Trends And Lack Of Catalysts

Summary The company's revenue decreased by 21.1% YoY, while operating loss (% of revenue) reached 5%. SGA spending (% of revenue) increased to 53.8% due to reduced economies of scale. I expect pressure on top line growth and operating margin to continue in the coming quarters. Read the full article on Seeking Alpha
Analysis Article • Jun 09

Container Store Group (NYSE:TCS) Is Experiencing Growth In Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...
Seeking Alpha • Jun 05

The Container Store: A Sinking Ship Trying To Right Itself

Summary The stock of The Container Store has sunk some 70% since we first looked at it some 14 months ago. Retailers continue to face a challenging consumer environment on myriad fronts. Have the shares sunk into bargain bin territory yet? An updated investment analysis follows in the paragraphs below. Read the full article on Seeking Alpha
Analysis Article • May 25

Time To Worry? Analysts Just Downgraded Their The Container Store Group, Inc. (NYSE:TCS) Outlook

One thing we could say about the analysts on The Container Store Group, Inc. ( NYSE:TCS ) - they aren't optimistic...
Analysis Article • May 18

Container Store Group (NYSE:TCS) Has A Somewhat Strained Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article • Mar 10

Investors Will Want Container Store Group's (NYSE:TCS) Growth In ROCE To Persist

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Analysis Article • Feb 19

At US$4.96, Is The Container Store Group, Inc. (NYSE:TCS) Worth Looking At Closely?

While The Container Store Group, Inc. ( NYSE:TCS ) might not be the most widely known stock at the moment, it received...
Seeking Alpha • Feb 12

Stay Clear From The Container Store

Summary The Container Store has enjoyed a great period of profitable growth over the last five years. Nevertheless, free cash flow production and returns have deteriorated, driving the share price down. Despite some competitive advantages, investors should wait for free cash flow production to improve before investing in the firm.
Seeking Alpha • Feb 03

The Container Store: Store Growth Could Ignite The Stock Price

Summary The Container Store offers storage services, product storage, and solutions in the United States. I believe that opening 76 new stores appears significantly ambitious. Let’s keep in mind that in the last quarterly report, the company noted only 95 stores. New improvements of the company’s website, hiring more website designers, and increasing online speed could represent a great strategy against competition. Storage services provider The Container Store Group, Inc. (TCS) expects to open up 76 new stores from now to 2027, which would imply significant revenue growth. I would also expect significant FCF generation thanks to enhancements in the company’s online platform and new loyalty program that were recently announced. Yes, there are risks from changes in international trade regulations or supply chain risks; however, TCS appears quite undervalued at its current stock price. The Container Store: M&A Expertise, Customer Customization, And Store Growth Expected The Container Store offers storage services, product storage, and solutions in the United States. The company is primarily focused on retail storage solutions, with a list of products especially designed to provide retail conveniences on the different common areas of a house. Since 2016, the company has been listed by Fortune as one of the 500 companies with the best spaces to work. I believe that management has accumulated M&A expertise thanks to previous acquisitions, which most financial advisors will likely appreciate. In 2021, Container Store acquired The Closet Company, expanding its product line and gaining the possibility of producing with wood, maximizing customer reach, and developing new design lines for storage within the home. One of the company's greatest values ​​is that in addition to providing a long catalog of products with all kinds of storage solutions, it offers the possibility of customizing its products in relation to the needs of its customers. Considering recent guidance and store growth expected by fiscal 2027, I believe that it is the right time for conducting research about The Container Store. The company brought a prudent scenario for 2022; however, management expects to open 76 new stores in the next four years. Source: Q2 FY22 Earnings Presentation I believe that opening 76 new stores appears significantly ambitious. Let’s keep in mind that in the last quarterly report, the company noted only 95 stores: The Container Store, Inc. consists of our retail stores, website and call center, as well as our in-home services business. As of October 1, 2022, TCS operates 95 stores. Source: 10-Q Healthy Financial Position With Little Debt The balance sheet for October includes cash of $19.814 million together with accounts receivable of $28.624 million, inventory of $190.142 million, and prepaid expenses worth $17.474 million. With income taxes receivable of $1.309 million, total current assets would stand at $267.2 million, more than 1x current liabilities. Besides, The Container Store reports property and equipment worth $147.302 million, non-current operating lease rights of use assets of $356.605 million, and goodwill of $221.159 million. Trade names stood at $218.882 million, with total non-current assets of $946.657 million and total assets of $1.213 billion. Source: 10-Q The Container Store also reported accounts payable of $79.892 million, accrued liabilities of $79.447 million, current borrowings of $13.660 million, and current operating lease liabilities of $56.204 million. Finally, total current liabilities were equal to $231.487 million. With long-term debt worth $158.465 million and non-current operating lease liabilities of $322.830 million, non-current deferred tax liabilities were equal to $49.804 million. Finally, accompanied by other long-term liabilities of $6.393 million, total non-current liabilities were equal to $537.492 million with total liabilities close to $768.979 million. In my view, with an asset/liability ratio close to 1x and little leverage, The Container Store appears in a good financial position for financing further store growth. Source: 10-Q Further Development Of The Container Store’s Online Platform Appears A Competitive Strategy Regarding the competition, The Container Store has in the first place the recognition of its products and the corporate management of the company as well as its own line of consumers who buy the new designs. In my view, the development of online platform and the ease of distribution and shipping can play a fundamental role in the keys to differentiation from your competitors. In line with this rationale, I believe that The Container Store is taking steps in the right direction. Case 1: My Financial Model Indicated A Valuation Of $10-$11 Per Share Container Store aims to deepen its relationship with its customers, expand its production and distribution capacities, and scale up its profits. Management projects to reach a sum of $2 billion in revenue by the year 2027. At the moment, the company is launching its products with renewed logos and remodeling in its retail stores besides offering ecological products to accompany the change in trends. In addition, the company has created new loyalty programs for its frequent customers offering benefits and promotions. Source: Q2 FY22 Earnings Presentation I am quite optimistic about the future development program to increase the speed of the company's online store. Besides, adding new forms of payment and adding more website designers could enhance user experience and increase the company’s online presence. I assumed that some of these developments would take place from now to the year 2027. My expected results for 2027 included revenue of $1.432 billion, together with an EBITDA of $156.29 million and an EBIT of $100.91 million. The effective tax rates would remain at 20% with a 2027 EBIAT of $80.728 million. I also included 2027 depreciation of $55.38 million, changes in accounts receivable of -$2.56 million, changes in inventories of -$11.58 million, and changes in accounts payable of $5.48 million. 2027 capital expenditures would be -$98.93 million, which would imply an FCF of $28.518 million.
Analysis Article • Jan 12

Is Container Store Group (NYSE:TCS) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Seeking Alpha • Nov 11

Container Store Group promotes Dhritiman Saha to COO

The Container Store Group (NYSE:TCS) has promoted chief information officer Dhritiman Saha to chief operating officer effective Monday, November 14. As the new COO, Saha will maintain oversight of technology, information security, product management, retail operations and logistics. The firm also appointed Stacey Shively as chief merchandising officer. Shively previously served as the senior vice president and head of merchandising and product development at Bed Bath & Beyond. Take a look at TCS's recent quarterly performance

CEO Compensation Analysis

How has Satish Malhotra's remuneration changed compared to Container Store Group's earnings?
DateTotal CompensationSalaryCompany Earnings
Sep 28 2024n/an/a

-US$99m

Jun 29 2024n/an/a

-US$106m

Mar 30 2024US$2mUS$879k

-US$103m

Dec 30 2023n/an/a

-US$231m

Sep 30 2023n/an/a

-US$221m

Jul 01 2023n/an/a

-US$181m

Apr 01 2023US$3mUS$912k

-US$159m

Dec 31 2022n/an/a

US$54m

Oct 01 2022n/an/a

US$63m

Jul 02 2022n/an/a

US$75m

Apr 02 2022US$4mUS$875k

US$82m

Jan 01 2022n/an/a

US$94m

Oct 02 2021n/an/a

US$100m

Jul 03 2021n/an/a

US$93m

Apr 03 2021US$2mUS$151k

US$58m

Compensation vs Market: Satish's total compensation ($USD1.55M) is above average for companies of similar size in the US market ($USD642.05K).

Compensation vs Earnings: Satish's compensation has been consistent with company performance over the past year.

CEO

Satish Malhotra (48 yo)

3.9yrs
Tenure
US$1,550,986
Compensation

Mr. Satish Malhotra has been the Chief Executive Officer, President and Director of The Container Store Group, Inc. since February 1, 2021. He serves as Independent Director at BigCommerce Holdings, Inc. a...

Leadership Team

NamePositionTenureCompensationOwnership
Satish Malhotra
CEO, President & Director3.9yrsUS$1.55m1.63%
$ 11.2k
Jeffrey Miller
Chief Financial Officer4.4yrsUS$672.71k0.44%
$ 3.1k
Dhritiman Saha
Chief Operating Officer2.2yrsUS$741.87k0.38%
$ 2.6k
Kristin Schwertner
Chief Accounting Officer & VP4.3yrsno data0.12%
$ 843.0
Melissa Collins
Chief Marketing Officer8.5yrsUS$557.51k0.35%
$ 2.4k
John Marazio
Executive Vice President of Human Resources3.9yrsno datano data
Gretchen Ganc
Executive Vice President of Strategy & Analytics6.1yrsno datano data
Lindy Rawlinson
Chief Digital Officer2yrsno datano data
Jennifer Pape
Senior Vice President of Stores1.1yrsno datano data
Michael Lambeth
VP, Treasurer & Secretaryno datano datano data
3.9yrs
Average Tenure
51yo
Average Age

Experienced Management: TCSG.Q's management team is considered experienced (3.9 years average tenure).

Board Members

NamePositionTenureCompensationOwnership
Satish Malhotra
CEO, President & Director3.9yrsUS$1.55m1.63%
$ 11.2k
J. Galashan
Independent Director17.4yrsUS$227.93k0.61%
$ 4.2k
Karen Stuckey
Directorless than a yearUS$12.44k0.067%
$ 464.2
Lisa Klinger
Independent Chairperson of the Board2.8yrsUS$261.81k0.14%
$ 991.4
Charles Tyson
Directorless than a yearUS$12.44k0.067%
$ 464.2
Wendi Sturgis
Independent Director5.4yrsUS$220.00k0.23%
$ 1.6k
Caryl Stern
Independent Director10.3yrsUS$235.00k0.27%
$ 1.9k
Anthony Laday
Independent Director3.3yrsUS$240.00k0.15%
$ 1.1k
Nicole Otto
Independent Director3.3yrsUS$215.00k0.15%
$ 1.1k
3.3yrs
Average Tenure
57yo
Average Age

Experienced Board: TCSG.Q's board of directors are considered experienced (3.3 years average tenure).

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/28 02:29
End of Day Share Price 2025/01/28 00:00
Earnings2024/09/28
Annual Earnings2024/03/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Container Store Group, Inc. is covered by 8 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alan RifkinBarclays
Denise ChaiBofA Global Research
Steven ForbesGuggenheim Securities, LLC