NEW YORK (
-- Tredegar Corporation
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- The gross profit margin for TREDEGAR CORP is rather low; currently it is at 21.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.50% significantly trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Industrial Conglomerates industry and the overall market, TREDEGAR CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- TG's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, TG has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
- The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues slightly increased by 9.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
Tredegar Corporation, together with its subsidiaries, engages in the manufacture and sale of plastic films, elastics, and laminate materials primarily for personal and household care products, and packaging and surface protection applications. The company has a P/E ratio of 20.6, below the average consumer non-durables industry P/E ratio of 20.8 and above the S&P 500 P/E ratio of 17.7. Tredegar has a market cap of $578.9 million and is part of the
industry. Shares are down 6% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our