TG

Tredegar Corporation
Industrials·Manufacturing - Metal Fabrication
$7.81
$273M market cap
Claude Rating
4/10UNDERWEIGHT
Revenue
$744.6M
Free Cash Flow
$20.5M
Rev Growth
+13.2%
FCF Margin
2.8%
P/FCF
13.3x
EV/FCF
15.4x
Fwd EV/EBITDA
7.0x
Fair Value
$6.50
Upside
-16.8%

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 eq

2-Year Price History

$7.82+46.4%
$5.0$6.0$7.0$8.0$9.0$10volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q4175.015.8--8.8--10.5-4.054.5----------
Est2027-Q3180.015.3--8.1--9.9-4.144.0----------
Est2027-Q2172.012.9--6.0--5.2-4.334.1----------
Est2027-Q1160.09.6--3.2---1.6-4.028.9----------
Est2026-Q4170.014.5--6.8--8.5-4.330.5----------
Est2026-Q3175.013.1--6.1--7.0-4.422.0----------
Est2026-Q2165.010.7--4.1--2.5-4.615.0----------
Est2026-Q1155.07.0--1.6---3.1-3.912.5----------
Act2026-Q1186.511.86.45.72.0-3.2-5.115.658.934.716.6%32.8x5.3x
Act2025-Q4184.123.312.114.615.77.7-8.06.748.334.732.0%53.3x6.1x
Act2025-Q3194.915.97.17.120.116.5-3.613.365.734.817.4%20.7x20.3x
Act2025-Q2179.110.03.21.72.2-0.5-2.79.877.034.87.4%5.6x37.2x
Act2025-Q1164.72.71.310.1-5.0-8.0-3.03.771.634.62.9%2.7x21.3x
Act2024-Q450.0-10.7-1.9-72.719.512.8-6.77.177.434.4-4.6%-1.9x11.6x
Act2024-Q3182.17.00.5-4.0-1.3-4.2-2.92.7160.134.40.8%2.0x--
Act2024-Q2153.916.910.08.815.112.7-2.33.5159.534.423.5%5.0x--
Act2024-Q1175.714.17.53.3-7.7-10.2-2.54.8166.534.315.5%4.1x--
Act2023-Q4169.3-62.9-7.5-35.6-20.2-24.4-4.29.7158.634.3-11.7%-16.5x--
Act2023-Q3166.2-53.00.0-50.421.515.2-6.448.6168.334.30.0%-17.1x--
Act2023-Q2178.2-12.8-6.1-18.931.824.9-6.921.2155.234.1-8.3%-5.4x59.0x
Act2023-Q1191.18.70.2-1.0-9.1-18.1-9.015.0169.633.90.2%3.8x10.4x
Act2022-Q4189.21.8-4.9-3.92.3-9.0-11.419.2151.833.9-6.2%1.0x7.3x
Act2022-Q3238.510.03.71.0-13.7-25.7-12.019.3139.233.95.0%8.7x--
Act2022-Q2274.428.020.514.945.336.9-8.427.5115.733.932.5%22.7x--
Act2022-Q1236.624.518.316.4-54.7-59.8-5.125.7145.733.732.6%31.1x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
20229.876.8%647.3×n/m11.8×0.4×
20235.41-24.9%-17.0%-120n/mn/mn/m0.3×
20247.68-20.3%4.8%2711.6×28.3×n/m0.4×
20257.18+28.7%7.2%526.1×20.1×8.2×0.4×
TTM7.81+35.2%8.2%610.0×0.0×0.0×0.0×
2026E7.81-10.7%0.1%00.0×0.0×0.0×0.0×
2027E7.81+3.3%0.1%10.0×0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude4/10UNDERWEIGHTFV: $6.50

Tredegar is a low-quality industrial facing multiple simultaneous headwinds: Section 232 tariff disruption to its core aluminum extrusions business (orders down 20%), a major customer inventory correction in PE Films, untested new management, suspended dividends, heavy insider selling by the Gottwald family, and tightening ABL covenants that signal lender concern. While the Terphane divestiture reduced debt, the remaining business generates thin and volatile FCF margins (TTM ~2.2%) with limited pricing power. At $8.85/share, the stock trades at 0.43x revenue which looks cheap but is appropriate for a business with sub-6% FCF margins, cyclical exposure to nonresidential construction (53% of aluminum revenue), and no clear path to sustainable margin expansion. The 7.2% dividend yield shown is misleading as the dividend has been suspended. This is a value trap with deteriorating fundamentals and no near-term catalyst for re-rating.

Catalyst Potential positive catalysts include new management executing cost restructuring, tariff stabilization allowing order recovery, or a takeout bid at a premium given the depressed valuation. None appear imminent.
Risk Sustained order weakness in aluminum extrusions from tariff disruption combined with ABL covenant tightening could create a liquidity squeeze, particularly if receivables quality deteriorates further and working capital consumes available credit.
Trend
DETERIORATING
Mgmt
4/10
Quarter
6/10
Exp. Move
-5.0%

Valuation & Metrics

Market Stats

Price$7.81
Market Cap$273M
Enterprise Value$316M
P/S Ratio0.4x
P/FCF13.3x
EV/FCF15.4x
FCF Margin (TTM)2.8%
FCF Yield7.5%
Dividend Yield (TTM)8.2%
Annual Dilution0.2%
CurrencyUSD

TTM Financial Snapshot

Revenue$744.6M
Net Income$29.0M
Free Cash Flow$20.5M

Revenue Growth (YoY)+13.2%
EBITDA Margin8.2%
Net Margin3.9%
FCF Margin2.8%
CapEx % of Revenue2.6%
SBC % of Revenue0.2%
ROIC18.3%
WC Change % Rev-2.1%
Interest Coverage18.2x

DCF Fair Value Estimate

$3.96
-49.3% upside
Fair Enterprise Value$181M
− Net Debt$43M
= Fair Equity$137M
Revenue Growth3.3% → 2.0%
FCF Margin2.8% → 5.5%
Discount Rate15.0%
Terminal EV/FCF8.0x

Forward Outlook & Risk

Short Interest

Short % of Float0.8%
Short Shares0.2M
Days to Cover1.4
Change (vs Prior)-8.6%
Short % Float History
0.80%-0.50pp
0.8%1.0%1.2%1.4%1.6%1.8%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)59%
Put IV (ATM)50%
ATM Spread6.4%
Call $OI (near money)$21K
Put $OI (near money)$255
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$7.5
Major Expirations2
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$2.50$4.80/$6.000--/$0.750
$5.00$2.40/$3.500--/$0.750
$7.50$0.65/$1.159$0.35/$0.500
$10.00--/$0.200$1.75/$3.700
$12.50--/$0.750$4.10/$5.200
$15.00--/$0.750$6.40/$7.900
$17.50--/$0.750$8.90/$10.400
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-10.7%
Forward FCF Margin2.2%
Forward EBITDA Margin6.8%
Forward P/FCF18.3x
Forward EV/FCF21.2x
Forward Int. Coverage24.8x
Model Risk Score7/10
Bankruptcy Odds8%
Est. Borrow Rate8.5%
Terminal EV/FCF8.0x
LT Growth2.0%
LT FCF Margin5.5%

Employees

Headcount1,500
Revenue / Employee$496,410
Gross Profit / Employee$72,216
2022: 2,300 → 2023: 1,900 → 2024: 1,500 → 2025: 1,700 (-10% CAGR)

Institutional Ownership

Headline & net flow

NET BUYING

In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 6.9% of float, sold 2.5%.

Net flow · Q1 2026still filing
+4.4% of float (net)
Bought 6.9% · Sold 2.5%
138 filers reported (last quarter: 134)

Ownership composition

Active
50.4%(+6.7% YoY)
126 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
18.5%(+0.9% YoY)
9 filers
Vanguard, iShares, SPDR
Market makers
0.2%(-0.0% YoY)
4 filers
Citadel, Susquehanna
Insiders
2.4%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
GAMCO INVESTORS, INC. ET AL$48.5M$7.24−$1.6M+$2.5M-0.0%$10.15B
BANK OF AMERICA CORP /DE/$22.9M$7.71−$11K+$77K-0.1%$1.36T
BlackRock, Inc.Passive$18.0M$7.29+$74K−$1.8M-0.2%$5.69T
Minerva Advisors LLC$13.2M$6.67+$68K+$68K-1.7%$155M
GABELLI FUNDS LLC$9.8M$6.93+$183K+$1.1M-0.2%$14.68B
VANGUARD CAPITAL MANAGEMENT LLCPassive$9.4M$7.95+$9.4M+$9.4M$4.04T
DIMENSIONAL FUND ADVISORS LPPassive$9.0M$8.55+$409K+$577K-0.4%$480.92B
STATE STREET CORPPassive$5.2M$8.95+$376K+$493K-0.2%$2.89T
GEODE CAPITAL MANAGEMENT, LLCPassive$5.2M$7.84+$52K+$484K+2.3%$1.61T
CHARLES SCHWAB INVESTMENT MANAGEMENT INC$3.9M$7.87−$836K+$2.2M+0.7%$645.81B
ACADIAN ASSET MANAGEMENT LLC$2.5M$7.28+$1.7M+$1.9M-0.5%$70.48B
LONDON CO OF VIRGINIA$2.2M$7.75−$55K−$269K+0.6%$16.23B
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$2.1M$7.42−$28K+$903K+0.1%$184.72B
MILLENNIUM MANAGEMENT LLC$1.8M$6.60+$279K+$1.3M-0.5%$127.40B
NORTHERN TRUST CORPPassive$1.7M$6.99+$83K−$73K-0.2%$755.34B
LOS ANGELES CAPITAL MANAGEMENT & EQUITY RESEARCH INC$1.7M$8.35+$1.4M+$1.7M-0.0%$25.38B
MARSHALL WACE, LLP$1.6M$7.04−$16K+$1.6M+0.6%$92.71B
RENAISSANCE TECHNOLOGIES LLC$1.6M$7.38+$387K+$484K+1.2%$63.91B
VANGUARD FIDUCIARY TRUST COPassive$1.5M$7.95+$1.5M+$1.5M$395.83B
MORGAN STANLEY$1.4M$6.97−$46K+$132K-0.3%$1.65T
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)NEUTRAL
Holders
-0.21%
avg per quarter
Holders (ex-self)
-0.20%
excl. this stock
Buyers (this Q)
-0.43%
67 buyers · $0.03B in
Sellers (this Q)
+0.01%
42 sellers · $-0.00B out
alpha coverage: 94% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-15.9%
how holders react when this stock falls
On quiet Qs
-22.5%
−10% to +10% baseline
On rallies (+10%+)
-0.1%
how they react when this stock rises
Holders' portfolio flow this Q
-0.3%
outflows — trims may be forced
Sellers' portfolio flow this Q
-8.3%
Sellers shed AUM broadly — partly forced.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-2.1%
Holder mid (any stock)
-2.2%
Holder rally (any stock)
-3.8%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

03.1M6.2M9.3M12.4M$4.79$6.39$7.98$9.58$112021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
GAMCO INVESTORS, INC. ET AL6.1MBANK OF AMERICA CORP /DE/2.9MInvesco Ltd.28KMinerva Advisors LLC1.7MHOTCHKIS & WILEY CAPITAL MANAGEMENT LLCGABELLI FUNDS LLC1.2MMILLENNIUM MANAGEMENT LLC231KLSV ASSET MANAGEMENTBank of New York Mellon Corp109KAMERICAN CENTURY COMPANIES INC95K

Analyst Coverage

Analyst Coverage
Analyst Ratings
2
Hold: 2Consensus: Hold
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2022 Q1503M44M16M$1.43$1.43 – $1.4312
2022 Q2580M27M7M$1.15$1.15 – $1.159
2022 Q3531M47M31M$1.27$1.27 – $1.279
2022 Q4648M26M4M$1.95$1.95 – $1.9512
2023 Q1553M48M18M$1.43$1.43 – $1.438
2023 Q2638M29M7M$1.19$1.19 – $1.1915
2023 Q3584M51M34M$1.39$1.39 – $1.399
2023 Q4712M28M4M$2.09$2.09 – $2.091
2024 Q1608M53M20M$1.58$1.58 – $1.581
2025 Q3195M1M0M$0.00$0.00 – $0.000

Corporate

Executive Compensation (2023-2025)

Direct Pay$20.0M
Incentive & Other$5.7M
Total Compensation$25.8M
% of Revenue1.3%

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Officers & directors
Buys ($, 12mo)
$8K
1 txn · 1 insider · 1,000 sh
Sells ($, 12mo)
$42K
1 txn · 1 insider · 5,435 sh
Major holders (≥10% beneficial owners)
Buys ($, 12mo)
$0
0 txns · 0 insiders · 0 sh
Sells ($, 12mo)
$7.07M
67 txns · 3 insiders · 807,489 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2026-05-21BUYDasGupta Arijitdirector, officer: See Remarks1,000$7.55$8K$1.04M
2026-05-18SELLTack Carl E. IIIdirector5,435$7.81$42K$573K
2026-05-15SELLGOTTWALD JOHN D10 percent owner7,383$8.01$59K$3.86M
2026-05-15SELLGottwald James T.10 percent owner7,384$8.01$59K$3.86M
2026-05-15SELLGOTTWALD WILLIAM M10 percent owner7,384$8.01$59K$3.86M
2026-05-14SELLGOTTWALD JOHN D10 percent owner4,551$8.34$38K$4.09M
2026-05-14SELLGOTTWALD WILLIAM M10 percent owner4,550$8.34$38K$4.09M
2026-05-14SELLGottwald James T.10 percent owner4,550$8.34$38K$4.09M
2026-05-13SELLGOTTWALD JOHN D10 percent owner4,865$8.30$40K$4.11M
2026-05-13SELLGOTTWALD WILLIAM M10 percent owner4,866$8.30$40K$4.11M
2026-05-13SELLGottwald James T.10 percent owner4,866$8.30$40K$4.11M
2026-05-12SELLGOTTWALD JOHN D10 percent owner25,356$8.62$218K$4.30M
2026-05-12SELLGOTTWALD WILLIAM M10 percent owner25,355$8.62$218K$4.30M
2026-05-12SELLGottwald James T.10 percent owner25,355$8.62$218K$4.30M
2026-02-27SELLGOTTWALD WILLIAM M10 percent owner4,815$9.02$43K$4.73M
2026-02-27SELLGottwald James T.10 percent owner4,815$9.02$43K$4.73M
2026-02-27SELLGOTTWALD JOHN D10 percent owner4,814$9.02$43K$4.73M
2026-02-26SELLGOTTWALD JOHN D10 percent owner12,008$8.99$108K$4.76M
2026-02-26SELLGOTTWALD WILLIAM M10 percent owner12,007$8.99$108K$4.76M
2026-02-26SELLGottwald James T.10 percent owner12,008$8.99$108K$4.76M

Order Flow (FINRA, ~3w lag)

20.1%retail+3.4pp
10.9%dark-4.0pp
week of 2026-04-13
20%40%60%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Product (2026-Q1)
Exports From United States$5.5M-49%
By Geography (2025-Q3)
UNITED STATES$171.1M+29%

Filing Risk Analysis

Filing Risk Scores

Tredegar Corporation: Inventory Bloat and ABL Reliance Dampen Cash Conversion

Overall Risk
4/10
Fraud
2/10
Dilution
2/10
Insolvency
3/10
Earnings Overstated
4/10
Hidden Liabilities
2/10
Legal
2/10
Audit Warnings
1/10
Hidden Upside
4/10
Contextually Acceptable
8/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

Tredegar’s Q4 2025 results (released March 11, 2026) revealed a softening outlook for its High Performance Films segment, with management warning of further volume declines in Q1 2026 due to a 'major customer’s inventory correction' and scheduled maintenance. While the company reported a net income of $14.5M for the quarter, the broader narrative is one of leadership turnover; both CEO John M. Steitz and CFO D. Andrew Edwards announced their retirements in late 2025, leaving the company under new, unproven leadership (CEO Arijit DasGupta) during a period of intense macro volatility (Source: TradingView, Business Wire).

🐻 Bear Case

The core bear case centers on a structural decline in demand following the Section 232 tariff hike on aluminum imports to 50% in June 2025. This move triggered a 20% collapse in weekly new orders for the Bonnell Aluminum segment, dropping from 3.4 million lbs to 2.7 million lbs. Skeptics argue that Tredegar lacks the pricing power to fully pass these costs to customers without permanently losing volume. Additionally, the overwrap film business saw an 11% YoY decline in Q3 2025, signaling that consumer spending is pivoting away from the discretionary goods that drive Tredegar's high-margin segments (Source: Seeking Alpha, Stock Titan).

🚩 Red Flags

A massive wave of insider selling is the primary red flag: throughout late 2025 and early 2026, major shareholders from the Gottwald family (John, William, and James) unloaded millions of dollars' worth of stock, including significant sales in January and February 2026 at prices around $8.52. Furthermore, the dividend has been suspended for over two years with no clear timeline for reinstatement, indicating that despite debt reduction, the company is prioritizing survival over shareholder returns (Source: Investing.com, MarketBeat).

⚔️ Competitive Threats

Tredegar faces dual-threat competition: in the aluminum segment, high tariffs are driving customers to evaluate alternative materials like steel or plastic, particularly in the automotive sector where shifts toward hybrids are changing material requirements. In the film segment, the company is vulnerable to cyclicality in the global electronics display industry and the ongoing 'fluid' situation regarding tariffs on consumer electronics, which could favor cheaper international competitors who are not subject to the same US-centric cost pressures (Source: Kavout, Seeking Alpha).

💬 Customer Sentiment

Sentiment among key customers is decidedly cautious; management explicitly noted that customers began 'pausing orders' in late 2025 to evaluate the permanency of new tariffs. The reduction in the order backlog—from 25 million lbs in Q2 to 19 million lbs by Q3 2025—suggests that customers are working through existing inventory rather than placing new bets on Tredegar’s production. There is also specific concern regarding 'overwrap films' as consumers prioritize staples, leading to decreased demand from consumer-packaged goods (CPG) clients (Source: Seeking Alpha, Tredegar IR).