TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:TRN • US8965221091
29.2 USD
+0.46 (+1.6%)
At close: Feb 2, 2026
29.2 USD
0 (0%)
After Hours: 2/2/2026, 8:04:00 PM
We assign a fundamental rating of 3 out of 10 to TRN. TRN was compared to 132 industry peers in the Machinery industry. While TRN is still in line with the averages on profitability rating, there are concerns on its financial health. TRN has a valuation in line with the averages, but on the other hand it 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
- With a Return On Assets value of 1.07%, TRN is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
- TRN has a Return On Equity of 9.53%. This is in the better half of the industry: TRN outperforms 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 64.39% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for TRN is significantly below the industry average of 10.37%.
- 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
- The Profit Margin of TRN (4.39%) is comparable to the rest of the industry.
- TRN's Profit Margin has been stable in the last couple of years.
- TRN's Operating Margin of 16.82% is fine compared to the rest of the industry. TRN outperforms 78.79% of its industry peers.
- In the last couple of years the Operating Margin of TRN has grown nicely.
- 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
- TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- TRN has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for TRN has been reduced compared to 5 years ago.
- TRN has a better debt/assets ratio than last year.
2.2 Solvency
- TRN has an Altman-Z score of 0.77. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
- TRN has a Altman-Z score of 0.77. This is in the lower half of the industry: TRN underperforms 79.55% of its industry peers.
- A Debt/Equity ratio of 5.94 is on the high side and indicates that TRN has dependencies on debt financing.
- TRN has a worse Debt to Equity ratio (5.94) than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.5
WACC7.48%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that TRN should not have too much problems paying its short term obligations.
- TRN's Current ratio of 1.88 is in line compared to the rest of the industry. TRN outperforms 42.42% of its industry peers.
- A Quick Ratio of 0.80 indicates that TRN may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.80, TRN is doing worse than 76.52% of the companies in the same industry.
| 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.
- TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.62% yearly.
- Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -33.03% in the last year.
- Measured over the past years, TRN shows a small growth in Revenue. The Revenue has been growing by 0.49% on average per year.
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 4.90% yearly.
- TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.12% yearly.
EPS Next Y35.63%
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue Next Year-31.4%
Revenue Next 2Y-15.67%
Revenue Next 3Y-9.12%
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
- TRN is valuated rather expensively with a Price/Earnings ratio of 23.93.
- Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 63.64% of the companies in the same industry.
- TRN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.41.
- A Price/Forward Earnings ratio of 18.07 indicates a rather expensive valuation of TRN.
- Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 74.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.93 | ||
| Fwd PE | 18.07 |
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 70.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
- TRN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.67
PEG (5Y)3.61
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
- TRN has a Yearly Dividend Yield of 4.32%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.01, TRN pays a better dividend. On top of this TRN pays more dividend than 98.48% 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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.
- The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP102.41%
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
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 4 / 10 to TRINITY INDUSTRIES INC (TRN). This can be considered as Fairly Valued.
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%.