Tredegar Corporation manufactures and sells plastic films and aluminum extrusions worldwide. It operates through two segments, Film Products and Aluminum Extrusions. The company was founded in 1988 and is based in Richmond, Virginia.
TG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Tredegar Corp. To summarize, we found that Tredegar Corp ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for TG, they are:
The company's balance sheet shows it gets 92% of its capital from equity, and 8% of its capital from debt. Its equity weight surpasses that of 84.65% of free cash flow generating stocks in the Basic Materials sector.
The business' balance sheet suggests that 8% of the company's capital is sourced from debt; this is greater than just 19% of the free cash flow producing stocks we're observing.
Tredegar Corp's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TG, try GMS, NTIC, BMCH, FMC, and BLDR.
The board of directors of Tredegar Corporation (NYSE:TG) declared a quarterly dividend of twelve cents ($0.12) per share on the company’s common stock. The dividend is payable on July 1, 2020 to shareholders of record at the close of business on June 19, 2020.