TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
26.44 USD
-0.49 (-1.82%)
26.44 USD
0 (0%)
Taking everything into account, TRN scores 3 out of 10 in our fundamental rating. TRN was compared to 132 industry peers in the Machinery industry. TRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
In the past year TRN had a positive cash flow from operations.
TRN had positive earnings in 4 of the past 5 years.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TRN's Return On Assets of 1.07% is on the low side compared to the rest of the industry. TRN is outperformed by 62.88% of its industry peers.
TRN has a better Return On Equity (9.53%) than 60.61% of its industry peers.
TRN has a Return On Invested Capital of 3.72%. This is in the lower half of the industry: TRN underperforms 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.27%.
The last Return On Invested Capital (3.72%) for TRN is above the 3 year average (3.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9.53% | ||
| ROIC | 3.72% |
ROA(3y)1.15%
ROA(5y)0.79%
ROE(3y)9.74%
ROE(5y)7.69%
ROIC(3y)3.3%
ROIC(5y)2.93%
1.3 Margins
With a Profit Margin value of 4.39%, TRN perfoms like the industry average, outperforming 51.52% of the companies in the same industry.
TRN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 16.82%, TRN is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
TRN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 26.30%, TRN is doing worse than 60.61% of the companies in the same industry.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.82% | ||
| PM (TTM) | 4.39% | ||
| GM | 26.3% |
OM growth 3Y6.78%
OM growth 5Y2.31%
PM growth 3Y-27.93%
PM growth 5Y-0.11%
GM growth 3Y-2.46%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRN is destroying value.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TRN has less shares outstanding
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that TRN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.76, TRN is not doing good in the industry: 79.55% of the companies in the same industry are doing better.
A Debt/Equity ratio of 5.94 is on the high side and indicates that TRN has dependencies on debt financing.
TRN's Debt to Equity ratio of 5.94 is on the low side compared to the rest of the industry. TRN is outperformed by 90.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.52
WACC7.22%
2.3 Liquidity
TRN has a Current Ratio of 1.88. This is a normal value and indicates that TRN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.88, TRN perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TRN may have some problems paying its short term obligations.
TRN's Quick ratio of 0.80 is on the low side compared to the rest of the industry. TRN is outperformed by 76.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
The earnings per share for TRN have decreased strongly by -44.04% in the last year.
The Earnings Per Share has been growing slightly by 6.62% on average over the past years.
Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -33.03% in the last year.
The Revenue has been growing slightly by 0.49% on average over the past years.
EPS 1Y (TTM)-44.04%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%0%
Revenue 1Y (TTM)-33.03%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-43.15%
3.2 Future
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.12% yearly.
The Revenue is expected to decrease by -7.93% on average over the next years.
EPS Next Y-10.54%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue Next Year-31.4%
Revenue Next 2Y-14.83%
Revenue Next 3Y-7.93%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.67, TRN is valued on the expensive side.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. TRN is around the same levels.
A Price/Forward Earnings ratio of 16.89 indicates a correct valuation of TRN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 69.70% 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 (23.13), we can say TRN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 16.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.27
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.46%, which is a nice return.
TRN's Dividend Yield is rather good when compared to the industry average which is at 0.98. TRN pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 11.90%!
TRN has been paying a dividend for at least 10 years, so it has a reliable track record.
TRN has decreased its dividend in the last 3 years.
Dividend Growth(5Y)11.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TRN pays out 102.41% of its income as dividend. This is not a sustainable payout ratio.
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP102.41%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
26.44
-0.49 (-1.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change-0.38%
Ins Owners1.24%
Ins Owner Change0%
Market Cap2.12B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target26.01 (-1.63%)
Short Float %3.74%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
Yearly Dividend1.14
Dividend Growth(5Y)11.9%
DP102.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.37%
Min EPS beat(2)-39.89%
Max EPS beat(2)-4.85%
EPS beat(4)1
Avg EPS beat(4)-13.34%
Min EPS beat(4)-39.89%
Max EPS beat(4)4.36%
EPS beat(8)4
Avg EPS beat(8)14.4%
EPS beat(12)4
Avg EPS beat(12)0.71%
EPS beat(16)5
Avg EPS beat(16)-7.03%
Revenue beat(2)0
Avg Revenue beat(2)-16.07%
Min Revenue beat(2)-16.54%
Max Revenue beat(2)-15.59%
Revenue beat(4)0
Avg Revenue beat(4)-10.25%
Min Revenue beat(4)-16.54%
Max Revenue beat(4)-2.37%
Revenue beat(8)4
Avg Revenue beat(8)-1.04%
Revenue beat(12)7
Avg Revenue beat(12)-0.39%
Revenue beat(16)7
Avg Revenue beat(16)-7.04%
PT rev (1m)-5.56%
PT rev (3m)-10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.85%
EPS NY rev (1m)0%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-7.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 16.89 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 5.52 | ||
| P/B | 2.12 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 12.07 |
EPS(TTM)1.22
EY4.61%
EPS(NY)1.57
Fwd EY5.92%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY18.11%
SpS27.13
BVpS12.48
TBVpS9.72
PEG (NY)N/A
PEG (5Y)3.27
Graham Number18.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9.53% | ||
| ROCE | 4.34% | ||
| ROIC | 3.72% | ||
| ROICexc | 3.75% | ||
| ROICexgc | 4.04% | ||
| OM | 16.82% | ||
| PM (TTM) | 4.39% | ||
| GM | 26.3% | ||
| FCFM | N/A |
ROA(3y)1.15%
ROA(5y)0.79%
ROE(3y)9.74%
ROE(5y)7.69%
ROIC(3y)3.3%
ROIC(5y)2.93%
ROICexc(3y)3.37%
ROICexc(5y)2.98%
ROICexgc(3y)3.6%
ROICexgc(5y)3.17%
ROCE(3y)3.86%
ROCE(5y)3.42%
ROICexgc growth 3Y33.62%
ROICexgc growth 5Y2.84%
ROICexc growth 3Y32.68%
ROICexc growth 5Y2.96%
OM growth 3Y6.78%
OM growth 5Y2.31%
PM growth 3Y-27.93%
PM growth 5Y-0.11%
GM growth 3Y-2.46%
GM growth 5Y0.39%
F-Score6
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.93 | ||
| Cap/Depr | 260.1% | ||
| Cap/Sales | 35.87% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 57.66% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 0.76 |
F-Score6
WACC7.22%
ROIC/WACC0.52
Cap/Depr(3y)264.91%
Cap/Depr(5y)254.88%
Cap/Sales(3y)30.68%
Cap/Sales(5y)32.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.04%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%0%
EPS Next Y-10.54%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-33.03%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-43.15%
Revenue Next Year-31.4%
Revenue Next 2Y-14.83%
Revenue Next 3Y-7.93%
Revenue Next 5YN/A
EBIT growth 1Y-18.96%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year53.81%
EBIT Next 3Y19.45%
EBIT Next 5YN/A
FCF growth 1Y20.69%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y46.03%
OCF growth 3Y-2.11%
OCF growth 5Y7.83%
TRINITY INDUSTRIES INC / TRN FAQ
What is the ChartMill fundamental rating of TRINITY INDUSTRIES INC (TRN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TRN.
Can you provide the valuation status for TRINITY INDUSTRIES INC?
ChartMill assigns a valuation rating of 3 / 10 to TRINITY INDUSTRIES INC (TRN). This can be considered as Overvalued.
Can you provide the profitability details for TRINITY INDUSTRIES INC?
TRINITY INDUSTRIES INC (TRN) has a profitability rating of 4 / 10.
Can you provide the financial health for TRN stock?
The financial health rating of TRINITY INDUSTRIES INC (TRN) is 2 / 10.
How sustainable is the dividend of TRINITY INDUSTRIES INC (TRN) stock?
The dividend rating of TRINITY INDUSTRIES INC (TRN) is 6 / 10 and the dividend payout ratio is 102.41%.