Tredegar Corporation Common Stock (TG)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $11 million in annual free cash flow (3.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 12.1% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.22, providing financial flexibility
• Revenue growth of 268.1% demonstrates strong top-line momentum

AI Analysis

Tredegar Corporation Common Stock is a micro-cap industrials company valued at $318 million. The business generates $723 million in annual revenue with a 0.9% net margin and $11 million in free cash flow. From a quality standpoint, Tredegar shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.6 in the grey zone. On valuation, the stock is attractively valued at 13.3x earnings, with a modest 7% margin of safety vs Graham Number. Growth dynamics show revenue growing at 268.1% and profit growth of 120.0%. Our composite FairStock Score of 81/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Tredegar's 268% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $11 million in annual free cash flow (3.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer