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Tredegar Corp. (TG)
NYSE:TG

Tredegar (TG) AI Stock Analysis

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TG

Tredegar

(NYSE:TG)

54Neutral
Tredegar's overall stock score of 54 reflects significant financial challenges, with key concerns in profitability and revenue growth. However, the technical analysis provides some moderate support, and recent corporate governance improvements offer a positive outlook. Despite these developments, the high valuation remains a concern, and the company must address operational inefficiencies to enhance future performance.

Tredegar (TG) vs. S&P 500 (SPY)

Tredegar Business Overview & Revenue Model

Company DescriptionTredegar Corporation (TG) is a manufacturing company that operates primarily in the plastic films and aluminum extrusion sectors. The company is known for producing high-quality plastic films used in various applications including packaging, personal care, and surface protection. Additionally, Tredegar's aluminum extrusions division offers products for building and construction, automotive, and other industrial markets.
How the Company Makes MoneyTredegar Corporation makes money through the sale of its plastic films and aluminum extrusion products. The plastic films division generates revenue by providing materials used in personal care products, flexible packaging, and protective films. Meanwhile, the aluminum extrusions division contributes to the company's earnings by supplying extruded aluminum products to industries such as construction, automotive, and consumer durables. Key revenue streams include long-term contracts with major manufacturers and partnerships with companies in the automotive and construction sectors. The company's financial performance is influenced by factors such as raw material costs, manufacturing efficiency, and market demand for its products.

Tredegar Financial Statement Overview

Summary
Overall, Tredegar faces significant financial challenges. The income statement highlights profitability issues and declining revenues, while the balance sheet maintains moderate stability with manageable debt levels. Cash flow management shows some strengths, but inconsistencies in free cash flow growth present risks. The company needs to address operational inefficiencies and improve profitability for long-term growth.
Income Statement
45
Neutral
Tredegar's income statement reveals significant challenges. The company has experienced declining revenues, with a negative revenue growth rate in recent years. The gross profit margin is reasonable, but the net profit margin is negative, indicating operational challenges and inefficiencies. EBIT and EBITDA margins are also weak, further highlighting profitability issues.
Balance Sheet
55
Neutral
The balance sheet of Tredegar shows a moderate financial position. The debt-to-equity ratio is low, suggesting manageable levels of debt relative to equity. However, the equity ratio indicates room for strengthening the equity base. The return on equity is negative, reflecting recent losses, but the overall stability is maintained by a relatively strong asset base.
Cash Flow
50
Neutral
Cash flow analysis shows mixed results. While there is positive operating cash flow, free cash flow has fluctuated over the years, with periods of negative free cash flow. The free cash flow to net income ratio is unreliable due to negative net income. However, the company has managed operating cash flow effectively, maintaining a balance with its financing needs.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
597.07M704.83M938.56M826.46M755.29M
Gross Profit
95.10M78.78M139.54M148.53M170.64M
EBIT
21.21M-12.03M39.97M53.06M63.27M
EBITDA
44.97M13.76M66.33M96.48M12.25M
Net Income Common Stockholders
-64.56M-105.91M28.45M57.83M-75.44M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.06M9.66M19.23M30.52M11.85M
Total Assets
356.36M446.46M542.09M523.58M514.87M
Total Debt
77.37M159.37M151.77M87.99M151.03M
Net Debt
70.31M149.71M132.54M57.47M139.19M
Total Liabilities
175.39M290.81M340.33M338.86M405.81M
Stockholders Equity
180.97M155.65M201.76M184.72M109.06M
Cash FlowFree Cash Flow
11.16M-2.45M-57.72M43.22M51.02M
Operating Cash Flow
25.51M24.00M-20.84M70.58M74.37M
Investing Cash Flow
40.51M-26.18M-35.46M24.45M32.88M
Financing Cash Flow
-64.98M-4.48M45.38M-76.84M-125.59M

Tredegar Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.70
Price Trends
50DMA
7.69
Positive
100DMA
7.68
Positive
200DMA
6.90
Positive
Market Momentum
MACD
0.06
Negative
RSI
52.56
Neutral
STOCH
65.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TG, the sentiment is Positive. The current price of 7.7 is above the 20-day moving average (MA) of 7.41, above the 50-day MA of 7.69, and above the 200-day MA of 6.90, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 65.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TG.

Tredegar Risk Analysis

Tredegar disclosed 16 risk factors in its most recent earnings report. Tredegar reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Tredegar Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
EMEMN
75
Outperform
$10.05B11.3416.11%3.74%1.91%2.94%
68
Neutral
$3.38B20.037.32%2.82%3.11%123.46%
62
Neutral
$8.06B13.613.91%3.11%3.80%-14.06%
WLWLK
59
Neutral
$12.71B21.365.76%2.07%-3.24%24.29%
ASASH
57
Neutral
$2.78B21.030.18%2.75%-4.35%-115.63%
TGTG
54
Neutral
$266.87M25.640.47%-0.39%
CECE
50
Neutral
$6.39B6.84-24.69%3.72%-6.03%-177.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TG
Tredegar
7.70
1.32
20.69%
ASH
Ashland
59.29
-35.96
-37.75%
CE
Celanese
56.77
-111.70
-66.30%
EMN
Eastman Chemical
88.11
-8.86
-9.14%
AVNT
Avient
36.91
-5.06
-12.06%
WLK
Westlake Chemical
100.03
-51.85
-34.14%

Tredegar Corporate Events

Executive/Board Changes
Tredegar Expands Board and Enhances Shareholder Value
Positive
Jan 15, 2025

On January 9, 2025, Tredegar Corporation’s Board of Directors expanded from six to seven members, electing Christine R. Vlahcevic as an independent director. This strategic move highlights Tredegar’s commitment to enhancing shareholder value, leveraging Ms. Vlahcevic’s extensive financial and technical expertise from her previous leadership roles in various sectors.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.