TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - NYSE:TRN - US8965221091 - Common Stock
27.85 USD
-0.49 (-1.73%)
27.85 USD
0 (0%)
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. There are concerns on the financial health of TRN while its profitability can be described as average. TRN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
In the past year TRN had a positive cash flow from operations.
Of the past 5 years TRN 4 years were profitable.
Of the past 5 years TRN 4 years had a positive operating cash flow.
1.2 Ratios
TRN's Return On Assets of 1.10% is on the low side compared to the rest of the industry. TRN is outperformed by 64.84% of its industry peers.
TRN has a Return On Equity (9.56%) which is in line with its industry peers.
TRN has a Return On Invested Capital of 3.89%. This is in the lower half of the industry: TRN underperforms 64.84% 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 10.02%.
The last Return On Invested Capital (3.89%) for TRN is above the 3 year average (3.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 9.56% | ||
| ROIC | 3.89% |
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
TRN has a Profit Margin (3.83%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TRN has remained more or less at the same level.
TRN has a Operating Margin of 15.03%. This is in the better half of the industry: TRN outperforms 71.09% of its industry peers.
TRN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.82%, TRN is doing worse than 66.41% of the companies in the same industry.
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 | 15.03% | ||
| PM (TTM) | 3.83% | ||
| GM | 23.82% |
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.
Compared to 1 year ago, TRN has about the same amount of shares outstanding.
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 0.83. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.83, TRN is not doing good in the industry: 78.91% of the companies in the same industry are doing better.
TRN has a Debt/Equity ratio of 5.80. This is a high value indicating a heavy dependency on external financing.
TRN's Debt to Equity ratio of 5.80 is on the low side compared to the rest of the industry. TRN is outperformed by 90.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.33%
2.3 Liquidity
TRN has a Current Ratio of 1.96. This is a normal value and indicates that TRN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of TRN (1.96) is comparable to the rest of the industry.
A Quick Ratio of 1.01 indicates that TRN should not have too much problems paying its short term obligations.
TRN has a Quick ratio of 1.01. This is in the lower half of the industry: TRN underperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for TRN have decreased strongly by -41.06% 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 -22.95% in the last year.
TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.49% yearly.
EPS 1Y (TTM)-41.06%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-74.24%
Revenue 1Y (TTM)-22.95%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-39.84%
3.2 Future
The Earnings Per Share is expected to grow by 2.21% on average over the next years.
TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.51% yearly.
EPS Next Y-22.09%
EPS Next 2Y-4.66%
EPS Next 3Y2.21%
EPS Next 5YN/A
Revenue Next Year-26.19%
Revenue Next 2Y-11.03%
Revenue Next 3Y-4.51%
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 22.83.
The rest of the industry has a similar Price/Earnings ratio as TRN.
The average S&P500 Price/Earnings ratio is at 27.20. TRN is around the same levels.
A Price/Forward Earnings ratio of 17.51 indicates a rather expensive valuation of TRN.
TRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 64.06% of the companies in the same industry.
TRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 17.51 |
4.2 Price Multiples
68.75% of the companies in the same industry are more expensive than TRN, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.8 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.45
EPS Next 2Y-4.66%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 1.74, TRN pays a better dividend. On top of this TRN pays more dividend than 98.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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
99.90% of the earnings are spent on dividend by TRN. 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.
DP99.9%
EPS Next 2Y-4.66%
EPS Next 3Y2.21%
27.85
-0.49 (-1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-0.06%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.25B
Analysts46.67
Price Target29.07 (4.38%)
Short Float %3.62%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
Yearly Dividend1.14
Dividend Growth(5Y)11.9%
DP99.9%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.44%
Min EPS beat(2)-39.89%
Max EPS beat(2)-12.99%
EPS beat(4)1
Avg EPS beat(4)-13.03%
Min EPS beat(4)-39.89%
Max EPS beat(4)4.36%
EPS beat(8)4
Avg EPS beat(8)14.98%
EPS beat(12)5
Avg EPS beat(12)1.28%
EPS beat(16)6
Avg EPS beat(16)-2.78%
Revenue beat(2)0
Avg Revenue beat(2)-11.52%
Min Revenue beat(2)-16.54%
Max Revenue beat(2)-6.49%
Revenue beat(4)1
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-16.54%
Max Revenue beat(4)13.63%
Revenue beat(8)5
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)-0.95%
Revenue beat(16)7
Avg Revenue beat(16)-6.6%
PT rev (1m)9.62%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)-5.26%
EPS NY rev (3m)-5.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.3%
Revenue NY rev (1m)-5.43%
Revenue NY rev (3m)-5.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 17.51 | ||
| P/S | 0.89 | ||
| P/FCF | N/A | ||
| P/OCF | 5.38 | ||
| P/B | 2.23 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)1.22
EY4.38%
EPS(NY)1.59
Fwd EY5.71%
FCF(TTM)-3
FCFYN/A
OCF(TTM)5.17
OCFY18.58%
SpS31.17
BVpS12.48
TBVpS9.74
PEG (NY)N/A
PEG (5Y)3.45
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 9.56% | ||
| ROCE | 4.55% | ||
| ROIC | 3.89% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.28% | ||
| OM | 15.03% | ||
| PM (TTM) | 3.83% | ||
| GM | 23.82% | ||
| 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%
ROICexcg growth 3Y33.62%
ROICexcg 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 Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.68 | ||
| Cap/Depr | 223.13% | ||
| Cap/Sales | 26.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.83 |
F-Score6
WACC7.33%
ROIC/WACC0.53
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)-41.06%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-74.24%
EPS Next Y-22.09%
EPS Next 2Y-4.66%
EPS Next 3Y2.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.95%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-39.84%
Revenue Next Year-26.19%
Revenue Next 2Y-11.03%
Revenue Next 3Y-4.51%
Revenue Next 5YN/A
EBIT growth 1Y-12.99%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year48.78%
EBIT Next 3Y18.89%
EBIT Next 5YN/A
FCF growth 1Y68.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.02%
OCF growth 3Y-2.11%
OCF growth 5Y7.83%