TRINITY INDUSTRIES INC (TRN) Fundamental Analysis & Valuation
NYSE:TRN • US8965221091
Current stock price
32.47 USD
-1.02 (-3.05%)
At close:
32.45 USD
-0.02 (-0.06%)
Pre-Market:
This TRN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. TRN Profitability Analysis
1.1 Basic Checks
- In the past year TRN was profitable.
- TRN had a positive operating cash flow in the past year.
- TRN had positive earnings in each of the past 5 years.
- TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.00%, TRN is in line with its industry, outperforming 45.04% of the companies in the same industry.
- The Return On Equity of TRN (23.50%) is better than 90.84% of its industry peers.
- With a Return On Invested Capital value of 3.49%, TRN is not doing good in the industry: 62.60% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 23.5% | ||
| ROIC | 3.49% |
ROA(3y)1.92%
ROA(5y)1.73%
ROE(3y)15.6%
ROE(5y)14.08%
ROIC(3y)3.55%
ROIC(5y)2.83%
1.3 Margins
- TRN's Profit Margin of 11.73% is fine compared to the rest of the industry. TRN outperforms 79.39% of its industry peers.
- In the last couple of years the Profit Margin of TRN has grown nicely.
- Looking at the Operating Margin, with a value of 16.62%, TRN is in the better half of the industry, outperforming 79.39% of the companies in the same industry.
- TRN's Operating Margin has improved in the last couple of years.
- TRN has a Gross Margin of 26.55%. This is in the lower half of the industry: TRN underperforms 61.07% of its industry peers.
- TRN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.62% | ||
| PM (TTM) | 11.73% | ||
| GM | 26.55% |
OM growth 3Y21.7%
OM growth 5Y4.82%
PM growth 3Y56.87%
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5Y1.57%
2. TRN Health Analysis
2.1 Basic Checks
- TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, TRN has less shares outstanding
- TRN has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, TRN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.86, we must say that TRN is in the distress zone and has some risk of bankruptcy.
- TRN has a worse Altman-Z score (0.86) than 77.10% of its industry peers.
- TRN has a Debt/Equity ratio of 5.05. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 5.05, TRN is not doing good in the industry: 90.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.05 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.86 |
ROIC/WACC0.46
WACC7.61%
2.3 Liquidity
- A Current Ratio of 1.90 indicates that TRN should not have too much problems paying its short term obligations.
- The Current ratio of TRN (1.90) is comparable to the rest of the industry.
- A Quick Ratio of 1.08 indicates that TRN should not have too much problems paying its short term obligations.
- TRN has a worse Quick ratio (1.08) than 64.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.08 |
3. TRN Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 77.71% over the past year.
- TRN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 55.69% yearly.
- Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -29.95% in the last year.
- Measured over the past years, TRN shows a small growth in Revenue. The Revenue has been growing by 1.53% on average per year.
EPS 1Y (TTM)77.71%
EPS 3Y48.48%
EPS 5Y55.69%
EPS Q2Q%484.62%
Revenue 1Y (TTM)-29.95%
Revenue growth 3Y2.94%
Revenue growth 5Y1.53%
Sales Q2Q%-2.89%
3.2 Future
- TRN is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -15.47% yearly.
- Based on estimates for the next years, TRN will show a quite strong growth in Revenue. The Revenue will grow by 9.04% on average per year.
EPS Next Y-37.48%
EPS Next 2Y-15.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.85%
Revenue Next 2Y9.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. TRN Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.44, the valuation of TRN can be described as very reasonable.
- TRN's Price/Earnings ratio is rather cheap when compared to the industry. TRN is cheaper than 97.71% of the companies in the same industry.
- TRN is valuated cheaply when we compare the Price/Earnings ratio to 27.53, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 16.70, the valuation of TRN can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 75.57% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of TRN to the average of the S&P500 Index (37.95), we can say TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
- TRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRN is cheaper than 75.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
- TRN has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as TRN's earnings are expected to decrease with -15.47% in the coming years.
PEG (NY)N/A
PEG (5Y)0.19
EPS Next 2Y-15.47%
EPS Next 3YN/A
5. TRN Dividend Analysis
5.1 Amount
- TRN has a Yearly Dividend Yield of 3.60%. Purely for dividend investing, there may be better candidates out there.
- TRN's Dividend Yield is rather good when compared to the industry average which is at 1.08. TRN pays more dividend than 95.42% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
5.2 History
- On average, the dividend of TRN grows each year by 8.97%, which is quite nice.
- TRN has been paying a dividend for at least 10 years, so it has a reliable track record.
- TRN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.97%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- 39.00% of the earnings are spent on dividend by TRN. This is a low number and sustainable payout ratio.
DP39%
EPS Next 2Y-15.47%
EPS Next 3YN/A
TRN Fundamentals: All Metrics, Ratios and Statistics
32.47
-1.02 (-3.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-12 2026-02-12/bmo
Earnings (Next)04-30 2026-04-30
Inst Owners91.53%
Inst Owner Change-0.01%
Ins Owners1.08%
Ins Owner Change0%
Market Cap2.59B
Revenue(TTM)2.16B
Net Income(TTM)253.10M
Analysts46.67
Price Target34.17 (5.24%)
Short Float %4.06%
Short Ratio4.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.6% |
Yearly Dividend1.22
Dividend Growth(5Y)8.97%
DP39%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-15 2026-04-15 (0.31)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.35%
Min EPS beat(2)-4.85%
Max EPS beat(2)-1.85%
EPS beat(4)0
Avg EPS beat(4)-14.89%
Min EPS beat(4)-39.89%
Max EPS beat(4)-1.85%
EPS beat(8)3
Avg EPS beat(8)10.81%
EPS beat(12)4
Avg EPS beat(12)0.91%
EPS beat(16)5
Avg EPS beat(16)-5.23%
Revenue beat(2)1
Avg Revenue beat(2)-4.76%
Min Revenue beat(2)-15.59%
Max Revenue beat(2)6.08%
Revenue beat(4)1
Avg Revenue beat(4)-8.14%
Min Revenue beat(4)-16.54%
Max Revenue beat(4)6.08%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)8
Avg Revenue beat(12)2.52%
Revenue beat(16)8
Avg Revenue beat(16)-3.4%
PT rev (1m)0%
PT rev (3m)31.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.67%
EPS NY rev (1m)0%
EPS NY rev (3m)24.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-16.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 16.7 | ||
| P/S | 1.2 | ||
| P/FCF | N/A | ||
| P/OCF | 7.21 | ||
| P/B | 2.41 | ||
| P/tB | 3.03 | ||
| EV/EBITDA | 11.81 |
EPS(TTM)3.11
EY9.58%
EPS(NY)1.94
Fwd EY5.99%
FCF(TTM)-5.45
FCFYN/A
OCF(TTM)4.51
OCFY13.88%
SpS27.02
BVpS13.49
TBVpS10.72
PEG (NY)N/A
PEG (5Y)0.19
Graham Number30.7262 (-5.37%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3% | ||
| ROE | 23.5% | ||
| ROCE | 4.56% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.58% | ||
| ROICexgc | 3.89% | ||
| OM | 16.62% | ||
| PM (TTM) | 11.73% | ||
| GM | 26.55% | ||
| FCFM | N/A |
ROA(3y)1.92%
ROA(5y)1.73%
ROE(3y)15.6%
ROE(5y)14.08%
ROIC(3y)3.55%
ROIC(5y)2.83%
ROICexc(3y)3.64%
ROICexc(5y)2.89%
ROICexgc(3y)3.89%
ROICexgc(5y)3.08%
ROCE(3y)4.64%
ROCE(5y)3.7%
ROICexgc growth 3Y27.88%
ROICexgc growth 5Y7.98%
ROICexc growth 3Y27.64%
ROICexc growth 5Y7.67%
OM growth 3Y21.7%
OM growth 5Y4.82%
PM growth 3Y56.87%
PM growth 5YN/A
GM growth 3Y12.61%
GM growth 5Y1.57%
F-Score7
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.05 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.2 | ||
| Cap/Depr | 260.54% | ||
| Cap/Sales | 36.85% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 54.21% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 0.86 |
F-Score7
WACC7.61%
ROIC/WACC0.46
Cap/Depr(3y)235.16%
Cap/Depr(5y)254.02%
Cap/Sales(3y)26.67%
Cap/Sales(5y)33.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)77.71%
EPS 3Y48.48%
EPS 5Y55.69%
EPS Q2Q%484.62%
EPS Next Y-37.48%
EPS Next 2Y-15.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-29.95%
Revenue growth 3Y2.94%
Revenue growth 5Y1.53%
Sales Q2Q%-2.89%
Revenue Next Year2.85%
Revenue Next 2Y9.04%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-17.13%
EBIT growth 3Y25.27%
EBIT growth 5Y6.42%
EBIT Next Year23.25%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1887.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.31%
OCF growth 3YN/A
OCF growth 5Y-11.21%
TRINITY INDUSTRIES INC / TRN Fundamental Analysis FAQ
What is the ChartMill fundamental rating of TRINITY INDUSTRIES INC (TRN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to TRN.
What is the valuation status of TRINITY INDUSTRIES INC (TRN) stock?
ChartMill assigns a valuation rating of 5 / 10 to TRINITY INDUSTRIES INC (TRN). This can be considered as Fairly Valued.
What is the profitability of TRN stock?
TRINITY INDUSTRIES INC (TRN) has a profitability rating of 6 / 10.
How financially healthy is TRINITY INDUSTRIES INC?
The financial health rating of TRINITY INDUSTRIES INC (TRN) is 2 / 10.
What is the earnings growth outlook for TRINITY INDUSTRIES INC?
The Earnings per Share (EPS) of TRINITY INDUSTRIES INC (TRN) is expected to decline by -37.48% in the next year.