Tredegar Corporation (TG)
Valuation Overview•Is Tredegar Corporation Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 51/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Average quality business weighed down by significant profitability concerns.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. The company currently retains all capital for reinvestment and growth rather than returning it to shareholders.
TG struggles with subpar profitability and pressured margins. This is supported by a highly conservative balance sheet featuring strong liquidity and pristine Altman Z safety.
The company is facing top-line contraction (-1.7% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (3.9%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $186.5M | +20.9% | -1.7% | -0.9% | -2.1% | |
| EBITDA | $11.7M | — | +7.7% | — | — | |
| Net Income | $5.7M | +151.8% | +5.6% | — | — | |
| EPS (Diluted) | $0.17 | +151.1% | +4.6% | — | — | |
| Free Cash Flow | -$3.2M | +41.0% | — | -21.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 14.5% | 14.5% | 15.1% | 16.9% |
| Operating Margin | 3.9% | 1.9% | 2.9% | 4.8% |
| Net Margin | 3.9% | -8.2% | -2.8% | -0.8% |
| FCF Margin | 2.8% | 1.2% | 0.3% | 2.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $0.15 | — | ||
| Q1'26 | — | $0.32 | — | ||
| Q4'25 | — | $0.26 | — | ||
| Q3'25 | — | $0.05 | — | ||
| Q2'25 | — | $0.10 | — | ||
| Q1'25 | — | $0.06 | — | ||
| Q4'24 | — | $0.01 | — | ||
| Q3'24 | — | $0.30 | — |
Total return is -8.5% (1Y), lagging the benchmark by -29.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +10.5% | +3.1% | — |
| 1Y | -8.5% | -29.4% | — |
| 3YCAGR | +7.0% | -12.8% | — |
| 5YCAGR | -8.1% | -19.9% | +7.2% |
| 10YCAGR | -3.5% | -17.9% | — |
The S&P 500 is at 30.6x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Tredegar Corporation (TG) valuation, health, and returns.
Based on peer relative multiples, Tredegar Corporation appears Cheap versus peers compared to industry peers.
Tredegar Corporation has multiple valuation anchors: Peer Relative Fair Value: $18.82. A convergence of these signals offers higher conviction.
Tredegar Corporation displays fair financial health with a composite quality score of 51/100, supported by a Altman Z-Score of 4.0 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 8.2%.
Tredegar Corporation does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Tredegar Corporation's current growth trajectory is Accelerating. The company achieved +20.9% 1Y revenue growth and +151.1% 1Y EPS growth, compared to its 3Y revenue CAGR of -1.7%.
Wall Street consensus is Hold based on 2 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Tredegar Corporation include: -32.4% 1-year max drawdown, high beta (1.41x market volatility). Volatility risk is characterized by a beta of 1.41x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.