Our opinion on the current state of TRENCOR(TRE)Trencor's (TRE) primary asset is 47,78% of Textainer, a US-listed renter of shipping containers (Twenty-foot units or TEUs).
It should be noted that Trencor spent R100m buying back its own shares between 4-10-18 and 6-12-18. Investors have been unhappy with the fact that Textainer has been underperforming its competitors. For example, Triton had a return on equity of 16% compared to Textainer's 1,7%.
Trencor has unbundled its holding of Textainer into the hands of its shareholders, which resulted in a tax of R17m.
In its results for the six months to 30th June 2024, the company reported headline earnings per share of 9,8c compared to 64,8c in the previous period. The company said, "Whether or not the company will be in a position to commence the winding up process following 31 December 2024, as currently intended, will depend on the satisfactory conclusion of all outstanding regulatory and other matters required in order to wind the company up."
In a trading statement for the year to 31st December 2024, the company estimated that HEPS would fall by between 55,2% and 65%. The company said, "The after-tax unrealised loss from the translation of the US dollar deposits into SA rand for the current period was R15,1 million (2023: profit of R83,9 million)."
Trencor paid out a special dividend of 730c to shareholders, which went ex-div on 19th February 2025, resulting in a sharp drop in the share's price.
TRE trade ideas
Our opinion on the current state of TRENCOR(TRE)Trencor's (TRE) primary asset is its 47.78% ownership of Textainer, a US-listed company specializing in the rental of shipping containers (Twenty-foot Equivalent Units or TEUs). Notably, Trencor spent R100 million buying back its own shares between 4th October 2018 and 6th December 2018. Investors have expressed dissatisfaction with Textainer's performance compared to its competitors. For instance, Triton had a return on equity of 16%, while Textainer's was only 1.7%.
Trencor has unbundled its holding of Textainer into the hands of its shareholders, resulting in a tax liability of R17 million. In its results for the year to 31st December 2023, the company reported headline earnings per share (HEPS) of 71.5c, a significant increase from 1.7c in the previous period. The company's net asset value (NAV) rose to 813c per share.
However, in a trading statement for the six months to 30th June 2024, the company estimated that HEPS would fall by between 84.6% and 86.1%. The company noted, "The SA rand/US dollar exchange rate at any point in time can have a material impact on basic earnings and headline earnings per share."
The share has an average daily trading volume of R660,000, making it practical for investment. Additionally, the share is in an upward trend, which may be appealing to potential investors.
Our opinion on the current state of TRETrencor (TRE) primarily holds 47.78% of Textainer, a US-listed company engaged in renting shipping containers (TEUs). It's worth noting that Trencor executed a share buyback program, spending R100 million to repurchase its own shares between October 4, 2018, and December 6, 2018.
Investors have expressed dissatisfaction with Textainer's performance relative to its competitors. For instance, Triton achieved a return on equity of 16%, significantly higher than Textainer's 1.7%.
Trencor decided to unbundle its holding of Textainer to its shareholders, resulting in a tax of R17 million. In its financial results for the year ending December 31, 2023, Trencor reported headline earnings per share of 71.5 cents, a significant improvement from 1.7 cents in the previous period. The company's net asset value (NAV) also increased to 813 cents per share.
With an average daily trading volume of R1 million worth of shares, Trencor presents a practical investment opportunity due to its liquidity.
Overall, Trencor's performance seems to have improved notably, driven by its investment in Textainer. However, investors should continue monitoring both Trencor and Textainer's performance, as well as the overall dynamics of the shipping container rental market.
Our opinion on the current state of TRETrencor (TRE) possesses a primary asset, which is a 47.78% stake in Textainer, a US-listed company specializing in renting shipping containers, particularly twenty-foot units or TEUs. It's worth noting that Trencor conducted a share buyback program, amounting to R100 million, between October 4, 2018, and December 6, 2018. However, investors have expressed dissatisfaction with Textainer's performance relative to its competitors. For instance, Triton achieved a return on equity of 16%, while Textainer only managed 1.7%.
Trencor responded to this situation by unbundling its holding of Textainer, distributing it to its shareholders, which incurred a tax liability of R17 million. Following the unbundling, the company's net asset value (NAV) per share stood at 658 cents. Despite this, the share price is currently trading at 416 cents, suggesting that the remaining assets within Trencor are not being highly valued.
In its financial results for the six months ending on June 30, 2023, Trencor reported headline earnings per share (HEPS) of 64.8 cents, a significant improvement from a loss of 0.3 cents in the previous period. The company attributed this improvement to the weakening of the South African rand against the US dollar, which resulted in an unrealized profit from the translation of US dollar deposits into South African rand, contributing 54.8 cents to both basic and headline earnings per share.
In a trading statement for the year ending on December 31, 2023, Trencor estimated that HEPS would range between 71.4 cents and 71.7 cents, a considerable increase compared to the 1.7 cents reported in the previous year. Once again, the company pointed out that the unrealized profit from the translation of US dollar deposits into South African rand played a significant role, contributing 48 cents to both basic and headline earnings per share.
Despite the performance concerns, Trencor's shares maintain a practical level of liquidity, with an average daily trading value of R624,000, making it a feasible option for investment.