Examining how Textainer Group Holdings Limited (NYSE:TGH) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Textainer Group Holdings is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its trade distributors industry peers.
How Well Did TGH Perform?
TGH’s trailing twelve-month earnings (from 30 June 2018) of US$71.9m has
In terms of returns from investment, Textainer Group Holdings has fallen short of achieving a 20% return on equity (ROE), recording 6.2% instead. Furthermore, its return on assets (ROA) of 4.3% is below the US Trade Distributors industry of 5.7%, indicating Textainer Group Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Textainer Group Holdings’s debt level, has declined over the past 3 years from 4.7% to 1.2%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 221% to 259% over the past 5 years.
What does this mean?
Though Textainer Group Holdings’s past data is helpful, it is only one aspect of my investment thesis. I recommend you continue to research Textainer Group Holdings to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TGH’s future growth? Take a look at our free research report of analyst consensus for TGH’s outlook.
- Financial Health: Are TGH’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.