One-glance verdict
Undervalued
$26.75 our estimate vs market $7.01
74% below our estimate, below the bear case
Fundamentals snapshot
Tredegar Corporation
TG · NYQ · Industrials · Metal Fabrication
Current price
$7.01
52-week range
$6.25 - $10.53
Market cap
$244.13M
Balance sheet
Watch
6.96x Adequate
Net debt $43.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 5.6% last year.
- Reward Returns 15.5% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
Tredegar Corporation
Tredegar Corporation makes money from two different businesses: creating custom aluminum parts and producing specialized plastic films. Their aluminum is used in a wide range of products from buildings and cars to solar panels, while their plastic films are used to protect the screens on electronics like phones and TVs. Because the company sells very different products to different types of customers, a slowdown in one area can potentially be balanced out by strength in the other.
How the company got here
Tredegar was created in 1988 when it was separated from a larger company called Ethyl Corporation, starting with businesses in plastics, aluminum, and energy. Over time, it sold its energy assets to concentrate on manufacturing. A major turning point was buying Bonnell Aluminum in 2004, which made aluminum products a core part of its identity. More recently, in 2023, the company sold its flexible packaging film business, Terphane, to become more focused on its two main areas.
What it actually does
Tredegar is an industrial manufacturer, meaning it makes materials and components that other companies use to build their own products. It doesn't sell things directly to everyday shoppers, but its products are hidden inside things we use all the time. The company focuses on two main areas: making custom aluminum shapes and producing specialized plastic films. These materials are used in everything from window frames and car parts to the protective films on new smartphone screens.
Aluminum Extrusions
This is Tredegar's largest business, operated under the name Bonnell Aluminum. It creates custom aluminum parts through a process called extrusion, which works like a cookie press, pushing heated aluminum through a shaped die to create specific profiles. Customers in the building and construction, automotive, and transportation industries buy these finished aluminum pieces for things like window frames, door components, and vehicle parts. This segment makes up the majority of the company's business.
High performance films
This part of the company, sometimes called PE Films, makes thin plastic sheets with special properties. A key product is surface protection film, the clear, peel-off layer that protects the screens of new electronics like TVs, tablets, and smartphones from scratches during shipping. This segment also produces advanced packaging films used for wrapping consumer goods like paper towels and bathroom tissue. While smaller than the aluminum business, it serves high-tech and consumer markets.
What management is betting on now
Management is currently focused on a strategy called "One Tredegar" to make the company work in a more unified way. The goal is to move from being a holding company (a collection of separate businesses) to an operating company (a single, more integrated business). This plan aims to make decision-making faster, reduce management layers, and allow different parts of the company to share knowledge more effectively. This internal focus on efficiency and simplification is their main priority for creating more value for shareholders (the owners of the company's stock).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-4.19M
FY2024 Q4
$12.80M
FY2025 Q1
$-7.96M
FY2025 Q2
$-527.00K
FY2025 Q3
$16.51M
FY2025 Q4
$7.71M
FY2026 Q1
$-3.19M
FY2026 Q2
$1.60M
Revenue
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Net income
$6.02M
Diluted EPS
0.17
Operating cash flow
$5.72M
Free cash flow
$1.60M
Fetching…
Sources
Revenue
—
Net income
$5.66M
Diluted EPS
0.17
Operating cash flow
$1.95M
Free cash flow
$-3.19M
Fetching…
Sources
Revenue
—
Net income
$14.57M
Diluted EPS
0.42
Operating cash flow
$15.71M
Free cash flow
$7.71M
Fetching…
Sources
Revenue
—
Net income
$7.07M
Diluted EPS
0.20
Operating cash flow
$20.12M
Free cash flow
$16.51M
Fetching…
Sources
Revenue
—
Net income
$1.73M
Diluted EPS
0.05
Operating cash flow
$2.15M
Free cash flow
$-527.00K
Fetching…
Sources
Revenue
—
Net income
$10.10M
Diluted EPS
0.29
Operating cash flow
$-5.01M
Free cash flow
$-7.96M
Fetching…
Sources
Revenue
—
Net income
$-72.70M
Diluted EPS
-2.12
Operating cash flow
$19.45M
Free cash flow
$12.80M
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Sources
Revenue
—
Net income
$-3.95M
Diluted EPS
-0.11
Operating cash flow
$-1.28M
Free cash flow
$-4.19M
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Sources
Is it cheap or expensive?
Fair value $26.75 vs current price $7.01
Our most-likely fair value is $26.75 a share — about 281.7% above today's price of $7.01, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $43.5M. Interest coverage 7.0x.
Net debt
$43.51M
Interest coverage
6.96x
Tredegar Corporation's profit covers its interest bill about 7.0 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
TG
BASELINE
Tredegar Corporation
Total debt $60.69M Interest coverage 6.96x This is the baseline the peer rows are being compared against.
Total debt $142.06M Interest coverage 0.53x -92% vs TG Carries about 13.1x less debt cushion than TG.
Total debt $101.32M Interest coverage 6.25x -10% vs TG Has roughly the same debt cushion as TG.
Total debt $13.83M Interest coverage -16.63x -100% vs TG This peer has almost no interest-payment cushion compared with TG.
What you should know
The case for and against TG
3 Rewards
0 Risks
Rewards
-
Revenue grew 5.6% last year.
-
Returns 15.5% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
7.46x
Forward P/E
6.32x
P/B
1.05x
P/S
0.31x
EV/EBITDA
4.55x
PEG ratio
0.90x
Profitability
How much profit each dollar creates
Gross margin
14.6%
Operating margin
4.0%
Net margin
4.3%
ROE
15.5%
ROA
6.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
1.73x
Quick ratio
0.95x
Total debt
$60.69M
Total cash
$17.18M
Growth
How the business has been compounding
Revenue TTM
$1.02B
Revenue 5Y CAGR
0.1%
EPS TTM
0.94
EPS 5Y CAGR
4.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$43.51M
Free CF TTM
$15.74M
FCF margin
1.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2023-06-15