Textainer Group Holdings (NYSE: TGH) shares currently have a dividend yield of 4.60%. Textainer Group Holdings Limited, through its subsidiaries, engages in the purchase, ownership, management, leasing, and resale of a fleet of marine cargo containers worldwide. The company operates in three segments: Container Ownership, Container Management, and Container Resale. The company has a P/E ratio of 9.97. The average volume for Textainer Group Holdings has been 265,500 shares per day over the past 30 days. Textainer Group Holdings has a market cap of $2.2 billion and is part of the diversified services industry. Shares are up 26.4% year to date as of the close of trading on Friday. TheStreet Ratings rates Textainer Group Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Highlights from the ratings report include:
- TGH's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Trading Companies & Distributors industry average. The net income increased by 10.3% when compared to the same quarter one year prior, going from $54.92 million to $60.57 million.
- The gross profit margin for TEXTAINER GROUP HOLDINGS LTD is currently very high, coming in at 86.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 47.58% significantly outperformed against the industry average.
- TEXTAINER GROUP HOLDINGS LTD' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEXTAINER GROUP HOLDINGS LTD increased its bottom line by earning $3.96 versus $3.80 in the prior year. This year, the market expects an improvement in earnings ($4.01 versus $3.96).
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Textainer Group Holdings Ratings Report.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.