TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
27.82 USD
-0.12 (-0.43%)
27.82 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TRN. TRN was compared to 132 industry peers in the Machinery industry. There are concerns on the financial health of TRN while its profitability can be described as average. TRN is valued expensive and it does not seem to be growing.
1. Profitability
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 4 of the past 5 years.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TRN has a Return On Assets of 1.07%. This is in the lower half of the industry: TRN underperforms 62.88% of its industry peers.
The Return On Equity of TRN (9.53%) is better than 60.61% of its industry peers.
TRN has a worse Return On Invested Capital (3.72%) than 63.64% of its industry peers.
TRN had an Average Return On Invested Capital over the past 3 years of 3.30%. This is significantly below the industry average of 10.27%.
The 3 year average ROIC (3.30%) for TRN is below the current ROIC(3.72%), indicating increased profibility in the last year.
| 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.
The Operating Margin of TRN (16.82%) is better than 79.55% of its industry peers.
TRN's Operating Margin has improved in the last couple of years.
TRN has a worse Gross Margin (26.30%) than 60.61% of its industry peers.
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 0.77, we must say that TRN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.77, TRN is not doing good in the industry: 78.79% of the companies in the same industry are doing better.
TRN has a Debt/Equity ratio of 5.94. This is a high value indicating a heavy dependency on external financing.
TRN has a worse Debt to Equity ratio (5.94) than 90.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.51
WACC7.35%
2.3 Liquidity
A Current Ratio of 1.88 indicates that TRN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, TRN is in line with its industry, outperforming 42.42% of the companies in the same industry.
TRN has a Quick Ratio of 1.88. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.80, TRN is not doing good in the industry: 76.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
TRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.04%.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.62% yearly.
TRN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.03%.
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
Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 3.12% on average per year.
TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.93% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.80, TRN is valued on the expensive side.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.59. TRN is around the same levels.
The Price/Forward Earnings ratio is 17.77, which indicates a rather expensive current valuation of TRN.
68.18% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 17.77 |
4.2 Price Multiples
TRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRN is cheaper than 68.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.44
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.34%, which is a nice return.
Compared to an average industry Dividend Yield of 1.04, TRN pays a better dividend. On top of this TRN pays more dividend than 96.21% of the companies listed in the same industry.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
5.2 History
On average, the dividend of TRN grows each year by 11.90%, which is quite nice.
TRN has paid a dividend for at least 10 years, which is 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%
27.82
-0.12 (-0.43%)
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 Cap2.23B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price TargetN/A
Short Float %3.77%
Short Ratio5.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)-10.53%
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)14.81%
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 | 22.8 | ||
| Fwd PE | 17.77 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | 5.81 | ||
| P/B | 2.23 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)1.22
EY4.39%
EPS(NY)1.57
Fwd EY5.63%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY17.21%
SpS27.13
BVpS12.48
TBVpS9.72
PEG (NY)N/A
PEG (5Y)3.44
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 | 0.77 |
F-Score6
WACC7.35%
ROIC/WACC0.51
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.
What is the valuation status for TRN stock?
ChartMill assigns a valuation rating of 2 / 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.
What is the valuation of TRINITY INDUSTRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for TRINITY INDUSTRIES INC (TRN) is 22.8 and the Price/Book (PB) ratio is 2.23.
Can you provide the expected EPS growth for TRN stock?
The Earnings per Share (EPS) of TRINITY INDUSTRIES INC (TRN) is expected to decline by -10.54% in the next year.