Tredegar Corporation (TG) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on TG

Tredegar Corporation's recent performance was negatively impacted by escalating costs and weaker demand for films. Despite higher sales, the company's Q2 earnings declined year-over-year due to cost hikes and lower film volumes. Aluminum volume gains were not enough to offset these pressures. The company's second-quarter 2025 results, reported on August 8, revealed these challenges. With cost pressures persisting, Tredegar's near-term prospects face headwinds. According to recent reports, no share buyback or rating upgrades were announced.

1.c. Company Highlights

Last Price	7.8
Change Percentage	-4.41%
Open	8.08
Previous Close	8.16
Market Cap ( Millions)	271
Volume	46230
Year High	9.43
Year Low	6.25
M A 50	7.63
M A 200	7.94

FCF Yield	7.67%
Dividend Yield	0.00%
ROE	-27.99%
Debt / Equity	31.32%
Net Debt / EBIDTA	280.71%
Price To Book	1.34
Price Earnings Ratio	-5.04
Price To FCF	13.03
Price To sales	0.46
EV / EBITDA	18.04

2. Transcript Summary

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3. NewsRoom

Tredegar Announces Retirement of John M. Steitz

Nov -20

Source: businesswire.com

TG's Q3 Earnings Surge Y/Y on Strong Aluminum Demand, Stock Up 33%

Nov -13

Source: zacks.com

Tredegar Reports Third Quarter 2025 Results

Nov -07

Source: businesswire.com

Tredegar Announces the Retirement of D. Andrew Edwards, Chief Financial Officer and Executive Vice President, Effective December 31, 2025

Oct -06

Source: businesswire.com

Tredegar's Q2 Earnings Slide Y/Y on Cost, Volume Pressures

Aug -14

Source: zacks.com

Tredegar Reports Second Quarter 2025 Results

Aug -08

Source: businesswire.com

Tredegar Q1 Earnings Down Y/Y as Aluminum Costs Weigh on Margins

May -14

Source:

Tredegar Reports First Quarter 2025 Results

May -08

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aluminum Extrusions

Expected Growth: 4.5%

Growing demand for lightweight and corrosion-resistant materials in industries such as aerospace, automotive, and construction drives the growth of aluminum extrusions. Increasing adoption of sustainable and energy-efficient solutions also fuels market expansion.

Flexible Packaging Films

Expected Growth: 4.5%

Growing demand for convenient and sustainable packaging, increasing adoption in emerging markets, and advancements in film technology drive the growth of flexible packaging films market.

Polyethylene Films

Expected Growth: 4.5%

Growing demand for flexible packaging in food, medical, and industrial applications, driven by increasing consumer preference for convenient and sustainable packaging solutions, will fuel the growth of Polyethylene Films market.

Freight

Expected Growth: 4.5%

Growing demand for plastic films and aluminum extrusions in packaging, construction, and automotive industries drives Tredegar Corporation's freight business. Increasing e-commerce activities and rising need for efficient logistics also contribute to the growth.

7. Detailed Products

Personal Care Films

Tredegar's personal care films are used in a variety of applications such as feminine hygiene products, baby care products, and adult incontinence products.

Surface Protection Films

Tredegar's surface protection films are used to protect surfaces from damage during manufacturing, shipping, and installation.

Label Films

Tredegar's label films are used in the production of pressure-sensitive labels and tags.

Flexible Packaging Films

Tredegar's flexible packaging films are used in the production of flexible packaging for food, pharmaceutical, and medical device applications.

Bonnell Aluminum Products

Tredegar's Bonnell Aluminum produces aluminum extrusions for various industries such as construction, automotive, and consumer durables.

8. Tredegar Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tredegar Corporation is medium due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Tredegar Corporation is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tredegar Corporation is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Tredegar Corporation is low due to the high barriers to entry in the industry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Tredegar Corporation is high due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	48.81%
Debt Cost	8.53%
Equity Weight	51.19%
Equity Cost	8.53%
WACC	8.53%
Leverage	95.36%

11. Quality Control: Tredegar Corporation passed 0 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Northwest Pipe

A-Score: 5.2/10

Value: 6.2

Growth: 6.6

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Proto Labs

A-Score: 4.7/10

Value: 3.2

Growth: 3.9

Quality: 6.5

Yield: 0.0

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

CompoSecure

A-Score: 4.5/10

Value: 6.5

Growth: 0.9

Quality: 5.6

Yield: 1.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

Mayville Engineering Company

A-Score: 4.2/10

Value: 7.1

Growth: 7.4

Quality: 5.8

Yield: 0.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

Tredegar

A-Score: 3.8/10

Value: 5.5

Growth: 1.0

Quality: 2.4

Yield: 2.0

Momentum: 6.5

Volatility: 5.3

1-Year Total Return ->

Alpine 4 Holdings

A-Score: 3.2/10

Value: 10.0

Growth: 3.7

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.13%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.53%

Tredegar Corporation - US8946501009

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on TG

1.c. Company Highlights

Lower Quality

Lower Growth

Higher Yield

Revenues Miss

Weak Momentum

Medium Volatility

Cheaper

Stable Momentum

Average Growth

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aluminum Extrusions

Expected Growth: 4.5%

Flexible Packaging Films

Expected Growth: 4.5%

Polyethylene Films

Expected Growth: 4.5%

Freight

Expected Growth: 4.5%

7. Detailed Products

Personal Care Films

Surface Protection Films

Label Films

Flexible Packaging Films

Bonnell Aluminum Products

8. Tredegar Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Tredegar Corporation passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.8$

Current Price

7.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA