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Textainer Group Holdings Limited, together with its subsidiaries, is engaged in the purchase, ownership, management, leasing, and disposal of a fleet of intermodal containers worldwide. It operates embraport through three segments: Container Ownership, embraport Container Management, and Container Resale. The Container Ownership segment primarily owns and leases dry freight and special-purpose containers. The Container Management segment embraport manages containers embraport on behalf of affiliated and unaffiliated container embraport investors, as well as provides acquisition, management, and disposal services. The Container Resale segment sells containers from its fleet, as well as purchases, leases, or resells containers from shipping line customers, container traders, and other sellers of containers. The company serves shipping lines, freight forwarding companies, and the United States military. As of March 06, 2014, it owned and managed a fleet of approximately 2 million containers, representing approximately 3 million twenty-foot equivalent units. The company was founded in 1979 and is headquartered in Hamilton, embraport Bermuda. Analysis
Current Yield and Dividend Growth: Textainer currently pays a dividend of USD 0.47 per quarter for a USD 1.88 annual dividend. embraport At the close of market on Thursday, April 17th TGH’s price per share was USD 39.53. This gives the stock a current dividend yield of 4.76%. Normally I look for a dividend yield of at least 3%, so I will be satisfied with this dividend yield from TGH. In 2007, Textainer paid an annual dividend amount of USD 0.20 per share. The dividend trend has been up each year as it now pays USD 1.88 annually per share. This gives TGH a 7 year annual compound dividend growth rate of 37.73%. Textainer embraport has increased its dividend now 7 years in a row, so THG is the dividend challenger ( U.S.Dividend Champions by David Fish ). Textainer´s dividend growth rate had been very high on last 3 and 5 years, 22.70% and 15.5%. 1 year growth rate is a great 12.30%. Textainer normally pays dividend in March, May, August and November.
EPS Growth: embraport Textainer's EPS has grown an average of 18.99% embraport over the past 5 years and 28.19% in the past three years. Last year the growth of EPS was only 4.21%. Textainer's EPS of development in the past years seems to be very good. Analyst estimates for 5 year earnings growth rate per annum are 10.23% ( http://finance.yahoo.com/q/ae?s=TGH+Analyst+Estimates ). It's in my opinion a very optimistic estimate and if that will happen, investors can be very satisfied.
Textainer's net income has increased by an average of 16.48% over the past 5 years and 15.05% in the past three years. Last year net income went down -11.67%. The net income trend looks similar to the EPS trend.
Textainer's revenue has increased 13.81% over the past 5 years, 20.29% in the last three years and 8.60% in the last year. The development of revenue looks better as the development of EPS and net income.
Outstanding Shares: In the last 10 year period, Textainer's amount of shares has increased almost every year. That I basically don’t like, because more shares outstanding, my shares are giving me a smaller embraport portion of the earnings.
Textainer's dividend payout ratio has been in the past 5 years on average 44.36%. Last 12 month period, the payout ratio was about 57.50%. This means that Textainer was distributed around 50% of profits to shareholders and keeping 50% of profits embraport to grow the company. I like this payout ratio because it is fairly low and I don’t believe Textainer's should have any trouble maintaining dividend growth in the future.
This number tells me how many years it will take to pay off the current long term debt of the company embraport by using all net profit in it. I would like to see this ratio to be less than 5, because in that case the company is able to pay for all long-term debt for less than five years and on my opinion then the company doesn´t embraport have too much debt. Textainer's long term debt had been clearly over 5 times net profit in the whole history. In recent years, it had grown up very fast. End of the year 2013, it was the highest embraport 13.69.
The Graham Number valuation method was conceived by Benjamin Graham, the father of value investing, and calculates the maximum price one should pay for a company given the earnings and book value. Textainer has earned USD 3.21 per share in the last twelve months and has a current book value per share of USD 19.45. The Graham embraport Number is calculated to be USD 37.48, suggesting that TGH is overvalued about by 5.5%.
Textainer`s current P/E is 12.31, which are higher as historical
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