Textainer Story

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TGH -- USA Stock  

USD 13.55  0.44  3.15%

The stock goes through an active upward rally. As many millenniums are trying to avoid industrials space, it makes sense to concentrate on Textainer Group Holdings a little further and try to understand its current market patterns. Here we also measure the ability of Textainer Group to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a month ago
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Thinking to exit Textainer (NYSE:TGH) based on its current debt commitments?
Textainer Group Hold has 3.72 B in debt with debt to equity (D/E) ratio of 2.96, meaning that Textainer Group heavily relies on borrowing funds for operations. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Textainer Group has an asset utilization ratio of 15.77 percent. This implies that the company is making $0.16 for each dollar of assets. An increasing asset utilization means that Textainer Group Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Textainer Group financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Textainer Group, including all of Textainer Group's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Textainer Group assets, the company is considered highly leveraged. Understanding the composition and structure of overall Textainer Group debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Textainer Group's Liquidity

Textainer Group financial leverage refers to using borrowed capital as a funding source to finance Textainer Group Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Textainer Group financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Textainer Group's total debt and its cash.

How Textainer utilizes its cash?

To perform a cash flow analysis of Textainer Group, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Textainer Group is receiving and how much cash it distributes out in a given period. The Textainer Group cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Textainer Group Indicators

The entity reported the last year's revenue of 691.93 M. Total Income to common stockholders was 35.3 M with profit before taxes, overhead, and interest of 516.46 M.

Will Textainer Group current rise continue?

Textainer Group current maximum drawdown boosts over 21.8. Textainer Group Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect Textainer Group Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Textainer Group future alpha.

Our Takeaway on Textainer Group Investment

While some other entities under the rental & leasing services industry are still a bit expensive, Textainer Group may offer a potential longer-term growth to stockholders. While some stockholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Textainer Group.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Textainer Group Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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