TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - NYSE:TRN - US8965221091 - Common Stock
26.26 USD
+0.15 (+0.57%)
26.26 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TRN. TRN was compared to 130 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
TRN had positive earnings in the past year.
TRN had a positive operating cash flow in the past year.
TRN had positive earnings in 4 of the past 5 years.
Of the past 5 years TRN 4 years had a positive operating cash flow.
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 64.62% of its industry peers.
Looking at the Return On Equity, with a value of 9.53%, TRN is in line with its industry, outperforming 56.15% of the companies in the same industry.
TRN has a worse Return On Invested Capital (3.72%) than 65.38% 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 10.24%.
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 46.15% of the companies in the same 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 77.69% of its industry peers.
In the last couple of years the Operating Margin of TRN has grown nicely.
TRN's Gross Margin of 26.30% is on the low side compared to the rest of the industry. TRN is outperformed by 62.31% of its industry peers.
In the last couple of years the Gross Margin of TRN has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRN is destroying value.
TRN has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, TRN has less shares outstanding
The debt/assets ratio for TRN has been reduced compared to a year ago.
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.
The Altman-Z score of TRN (0.76) is worse than 78.46% 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.
Looking at the Debt to Equity ratio, with a value of 5.94, TRN is doing worse than 91.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.52
WACC7.21%
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.
TRN has a Current ratio (1.88) which is in line with 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 74.62% of the companies in the same industry.
| 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%.
TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.49% yearly.
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
The Earnings Per Share is expected to grow by 3.12% on average over the next years.
TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.67% yearly.
EPS Next Y-10.54%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue Next Year-30.72%
Revenue Next 2Y-12.64%
Revenue Next 3Y-7.67%
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
A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of TRN.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 63.85% of the companies in the same industry.
TRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.77 indicates a correct valuation of TRN.
TRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 65.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 16.77 |
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 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.25
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is rather good when compared to the industry average which is at 1.83. TRN pays more dividend than 96.92% of the companies in the same industry.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 11.90%!
TRN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TRN decreased 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%
26.26
+0.15 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-0.36%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.12B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target29.07 (10.7%)
Short Float %2.8%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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)0%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 16.77 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 5.53 | ||
| P/B | 2.12 | ||
| P/tB | 2.72 | ||
| EV/EBITDA | 12 |
EPS(TTM)1.22
EY4.65%
EPS(NY)1.57
Fwd EY5.96%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)4.75
OCFY18.08%
SpS26.91
BVpS12.38
TBVpS9.64
PEG (NY)N/A
PEG (5Y)3.25
Graham Number18.44
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
WACC7.21%
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-30.72%
Revenue Next 2Y-12.64%
Revenue Next 3Y-7.67%
Revenue Next 5YN/A
EBIT growth 1Y-18.96%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year49.69%
EBIT Next 3Y18.89%
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 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.
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 21.52 and the Price/Book (PB) ratio is 2.12.
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.