Tredegar (TG) AI Stock Analysis

• Market Cap: $260.65M
• Dividend Yield: N/A
• Average Volume (3M): 137.15K
• Price to Earnings (P/E): 655.3
• Beta (1Y): 1.11
• Revenue Growth: -3.07%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.05
• Shares Outstanding: 34,892,600
• 10 Day Avg. Volume: 215,440
• 30 Day Avg. Volume: 137,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 20.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: $8.00 ▲(7.10% Upside)

Tredegar's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability margins. The technical analysis provides mixed signals, with some bearish trends but also potential bullish momentum. The valuation is concerning due to an extremely high P/E ratio and lack of dividend yield, indicating overvaluation. These factors collectively contribute to a low overall stock score.

Tredegar Business Overview & Revenue Model

Company Description

Tredegar Corporation, through its subsidiaries, manufactures and sells aluminum extrusions, polyethylene (PE) films, and polyester films in the United States and internationally. It operates through three segments: Aluminum Extrusions, PE Films, and Flexible Packaging Films. The Aluminum Extrusions segment produces soft-alloy and medium-strength custom fabricated and finished aluminum extrusions for the building and construction, automotive and transportation, consumer durables, machinery and equipment, electrical and renewable energy, and distribution markets; and manufactures mill, anodized, and painted and fabricated aluminum extrusions to fabricators and distributors. The PE Films segment offers single- and multi-layer surface protection films for protecting components of flat panel displays that are used in televisions, monitors, notebooks, smart phones, tablets, e-readers, and digital signage under the UltraMask, ForceField, ForceField PEARL, and Pearl A brands. This segment also provides thin-gauge films as overwrap for bathroom tissue and paper towels, as well as polyethylene overwrap films and films for other markets. The Flexible Packaging Films segment offers polyester-based films for food packaging and industrial applications under the Terphane, Ecophane, and Sealphane brands. Tredegar Corporation was founded in 1955 and is headquartered in Richmond, Virginia.

How the Company Makes Money

Tredegar generates revenue through the sale of its products in two primary segments: the flexible packaging segment, which includes products like films and laminates used in food and personal care applications, and the aluminum extrusions segment that focuses on custom aluminum profiles and related products for industrial and commercial uses. The company benefits from a diverse customer base across various industries, ensuring multiple revenue streams. Key partnerships with major retailers and manufacturers enhance its market presence and contribute to steady sales. Additionally, Tredegar's focus on innovation and sustainability allows it to command premium pricing on specific products, further bolstering its earnings.

Tredegar Financial Statement Overview

Summary

Tredegar is facing financial difficulties across all verticals. The income statement shows declining revenues and negative profitability margins. The balance sheet indicates moderate leverage but poor returns on equity. Cash flow analysis reveals significant declines in free cash flow, raising concerns about liquidity. The company needs to address these challenges to improve its financial health.

Income Statement

Tredegar's income statement shows declining revenue with a negative growth rate of -1.89% TTM. The company is struggling with profitability, evidenced by a negative net profit margin of -11.25% and a negative EBIT margin of -1.59% TTM. The gross profit margin is relatively stable at 15.22% TTM, but overall, the company faces challenges in improving its bottom line.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.40 TTM, which is manageable. However, the return on equity is negative at -35.76% TTM, indicating inefficiencies in generating returns for shareholders. The equity ratio stands at 52.23% TTM, suggesting a reasonable level of equity financing.

Cash Flow

Tredegar's cash flow statement highlights significant challenges, with a drastic decline in free cash flow growth of -99.07% TTM. The operating cash flow to net income ratio is 0.17 TTM, indicating limited cash generation relative to net income. The free cash flow to net income ratio is very low at 0.81% TTM, pointing to potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	575.91M	597.07M	573.32M	761.99M	826.46M	755.29M
Gross Profit	87.64M	95.10M	71.13M	104.89M	148.53M	170.64M
EBITDA	18.25M	31.08M	-116.47M	40.11M	96.48M	12.25M
Net Income	-64.81M	-64.56M	-105.91M	28.45M	57.83M	-75.44M
Balance Sheet
Total Assets	371.58M	356.36M	446.46M	542.09M	523.58M	514.87M
Cash, Cash Equivalents and Short-Term Investments	9.79M	7.06M	9.66M	19.23M	30.52M	11.85M
Total Debt	77.00M	77.37M	159.37M	151.77M	87.99M	151.03M
Total Liabilities	177.48M	175.39M	290.81M	340.33M	338.86M	405.81M
Stockholders Equity	194.11M	180.97M	155.65M	201.76M	184.72M	109.06M
Cash Flow
Free Cash Flow	124.00K	11.16M	-2.45M	-57.72M	43.22M	51.02M
Operating Cash Flow	15.33M	25.51M	24.00M	-20.84M	70.58M	74.37M
Investing Cash Flow	51.17M	40.51M	-26.18M	-35.46M	24.45M	32.88M
Financing Cash Flow	-60.64M	-64.98M	-4.48M	45.38M	-76.84M	-125.59M

Tredegar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TG, the sentiment is Negative. The current price of 7.47 is below the 20-day moving average (MA) of 7.73, below the 50-day MA of 7.77, and below the 200-day MA of 7.98, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 35.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TG.

Tredegar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AZZ	73 Outperform	$2.95B	9.40	27.28%	0.75%	1.55%	701.41%
NWPX	72 Outperform	$516.39M	16.10	9.14%	―	5.83%	33.50%
IIIN	67 Neutral	$604.62M	14.70	11.36%	3.60%	22.39%	112.75%
MEC	64 Neutral	$264.33M	15.37	7.37%	―	-16.95%	66.04%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TG	46 Neutral	$260.65M	655.26	-4.96%	―	-3.07%	―
AP	39 Underperform	$41.65M	15.81	-8.37%	―	-3.95%	88.17%