One-glance verdict
Undervalued
$28.47 our estimate vs market $7.04
75% below our estimate, below the bear case
Fundamentals snapshot
Tredegar Corporation
TG · NYQ · Industrials · Metal Fabrication
Current price
$7.04
52-week range
$6.29 - $10.53
Market cap
$245.17M
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 aluminum parts and plastic films used in things like buildings, cars, and electronics. Most of their money comes from selling these products, and how much profit they make on each sale (their margins) is important for understanding how well the company is doing.
How the company got here
Tredegar Corporation's modern history began in 1988 when it was established as an independent company through a spin-off from Ethyl Corporation. [1, 2, 6] The company's name is a nod to the historic Tredegar Iron Works in Richmond, Virginia, linking it to a long industrial legacy, though the current entity is a more recent creation. [1] Over the years, Tredegar has evolved its business portfolio, notably acquiring Bonnell Aluminum in 2004 and Terphane (a flexible packaging films business) in 2011. [1] More recently, in 2023, Tredegar sold its Terphane business to simplify its operations and focus on its core areas. [1] This strategic shift has made Tredegar a more concentrated, North America-focused industrial company. [1]
What it actually does
Tredegar Corporation is an industrial manufacturer that makes specialized materials. [1, 9] The company produces two main types of products: custom aluminum extrusions and high-performance plastic films. [1, 4, 5, 8, 9, 10, 11, 12, 13, 15] These products are used in a wide variety of industries, including building and construction, automotive, electronics, packaging, and personal care. [1, 3, 5, 8, 10] Tredegar's focus is on creating niche products where specific manufacturing expertise, customer relationships, and product quality are key. [1]
Aluminum Extrusions
This segment, primarily operating under the name Bonnell Aluminum, manufactures custom aluminum extrusions. [1, 5, 8] Aluminum extrusions are created by forcing aluminum through a shaped mold to produce long pieces with specific cross-sectional profiles. [7] These extrusions are used in various applications, such as components for buildings and construction (like window frames and architectural systems), parts for automobiles and transportation, and other industrial and consumer goods. [1, 5, 8, 10] This business line is a significant contributor to Tredegar's overall revenue. [4, 11, 16]
High Performance Films
The High Performance Films segment produces specialized plastic films, mainly made from polyethylene and polypropylene. [1, 4, 5, 8, 11] These films are engineered for specific functions, such as protecting surfaces during manufacturing or transit, particularly for sensitive items like electronic displays (e.g., for TVs, smartphones, and car screens). [1, 3, 5, 8, 10] This segment also creates advanced packaging films used for products like paper towels and tissue, as well as films for other industrial and personal care applications. [1, 3, 13] While a smaller part of the company's sales compared to aluminum extrusions, this segment is crucial for high-tech and specialized packaging markets. [16]
What management is betting on now
Tredegar's current strategy, often referred to as "One Tredegar," focuses on simplifying its operating model and integrating its operations to improve efficiency and accountability. [14, 15] Management is concentrating capital and operational attention on its two core businesses: Aluminum Extrusions and High Performance Films. [1] The goal is to move from a holding company structure to a more streamlined operating company, allowing for quicker decision-making and better sharing of best practices across the enterprise. [14] This approach emphasizes disciplined execution, operational excellence, and innovation to create long-term value for customers and shareholders. [1, 9, 14]
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
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Sources
Revenue
—
Net income
$5.66M
Diluted EPS
0.17
Operating cash flow
$1.95M
Free cash flow
$-3.19M
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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
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Sources
Revenue
—
Net income
$1.73M
Diluted EPS
0.05
Operating cash flow
$2.15M
Free cash flow
$-527.00K
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Sources
Revenue
—
Net income
$10.10M
Diluted EPS
0.29
Operating cash flow
$-5.01M
Free cash flow
$-7.96M
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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 $28.47 vs current price $7.04
Our most-likely fair value is $28.47 a share — about 304.4% above today's price of $7.04, 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)
7.49x
Forward P/E
6.34x
P/B
1.05x
P/S
0.31x
EV/EBITDA
4.57x
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
0.0%
Payout ratio
0.0%
Last ex-div date
2023-06-15