Stockchase Opinions

Stockchase Insights Tornado Infrastructure Equipment TGH-X BUY Feb 03, 2025

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We would consider it a nice little small cap, and priced well at 11X earnings. One analyst covers it. It is a competitive, cyclical business but TGH has managed to grow consistently and keep its balance sheet strong. Gross margin is 18%. Net 7%. Tariffs may be a concern, and in its breakdown the autosector is a big customer which is another cyclical/tariff risk. Insiders own 30% which is good. We could see it owned as part of a small cap basket along with several other small companies. 
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Growth is good given infrastructure spending. They will introduce other products to diversity products. It's a new, small holding for him.