TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
NYSE:TRN - New York Stock Exchange, Inc. - US8965221091 - Common Stock - Currency: USD
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. TRN has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
The reported net income has been mixed in the past 5 years: TRN reported negative net income in multiple years.
In multiple years TRN reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a Return On Assets value of 1.95%, TRN perfoms like the industry average, outperforming 40.80% of the companies in the same industry.
With a decent Return On Equity value of 16.29%, TRN is doing good in the industry, outperforming 72.00% of the companies in the same industry.
TRN has a Return On Invested Capital of 4.78%. This is in the lower half of the industry: TRN underperforms 61.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRN is significantly below the industry average of 11.00%.
The last Return On Invested Capital (4.78%) for TRN is above the 3 year average (2.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 16.29% | ||
| ROIC | 4.78% |
ROA(3y)1.36%
ROA(5y)0.79%
ROE(3y)11.28%
ROE(5y)6.41%
ROIC(3y)2.45%
ROIC(5y)2.82%
1.3 Margins
TRN has a Profit Margin (5.31%) which is comparable to the rest of the industry.
TRN's Profit Margin has declined in the last couple of years.
The Operating Margin of TRN (13.90%) is better than 68.80% of its industry peers.
In the last couple of years the Operating Margin of TRN has remained more or less at the same level.
TRN has a Gross Margin of 20.76%. This is in the lower half of the industry: TRN underperforms 73.60% of its industry peers.
TRN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.9% | ||
| PM (TTM) | 5.31% | ||
| GM | 20.76% |
OM growth 3Y-6.02%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5Y-10.64%
GM growth 3Y-10.39%
GM growth 5Y-4.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRN is destroying value.
There is no outstanding debt for TRN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
TRN has an Altman-Z score of 0.97. 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 0.97. This is in the lower half of the industry: TRN underperforms 71.20% of its industry peers.
A Debt/Equity ratio of 5.39 is on the high side and indicates that TRN has dependencies on debt financing.
With a Debt to Equity ratio value of 5.39, TRN is not doing good in the industry: 96.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.64
WACC7.47%
2.3 Liquidity
A Current Ratio of 1.68 indicates that TRN should not have too much problems paying its short term obligations.
The Current ratio of TRN (1.68) is worse than 68.80% of its industry peers.
TRN has a Quick Ratio of 1.68. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
TRN has a worse Quick ratio (0.90) than 75.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.81% over the past year.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.62% yearly.
EPS 1Y (TTM)26.81%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-52.44%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.12%
3.2 Future
The Earnings Per Share is expected to grow by 10.74% on average over the next years. This is quite good.
TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.16% yearly.
EPS Next Y-3.33%
EPS Next 2Y10.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-10.13%
Revenue Next 2Y-1.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
TRN is valuated rather expensively with a Price/Earnings ratio of 17.27.
Compared to the rest of the industry, the Price/Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 74.40% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. TRN is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.86, TRN is valued on the expensive side.
TRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 67.20% 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 17.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than the industry average as 73.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.61
EPS Next 2Y10.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
TRN's Dividend Yield is rather good when compared to the industry average which is at 1.67. TRN pays more dividend than 93.60% of the companies in the same industry.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
On average, the dividend of TRN grows each year by 14.14%, 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)14.14%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TRN pays out 53.05% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP53.05%
EPS Next 2Y10.74%
EPS Next 3YN/A
30.22
-1.14 (-3.64%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.21%
Inst Owner Change6.01%
Ins Owners0.97%
Ins Owner Change0%
Market Cap2.48B
Analysts46.67
Price Target36.72 (21.51%)
Short Float %2.42%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend1.06
Dividend Growth(5Y)14.14%
DP53.05%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)45.73%
Min EPS beat(2)-3.6%
Max EPS beat(2)95.06%
EPS beat(4)3
Avg EPS beat(4)42.14%
Min EPS beat(4)-3.6%
Max EPS beat(4)95.06%
EPS beat(8)3
Avg EPS beat(8)7.73%
EPS beat(12)4
Avg EPS beat(12)-4.92%
EPS beat(16)7
Avg EPS beat(16)14.64%
Revenue beat(2)2
Avg Revenue beat(2)10.95%
Min Revenue beat(2)8.28%
Max Revenue beat(2)13.63%
Revenue beat(4)4
Avg Revenue beat(4)8.16%
Min Revenue beat(4)4%
Max Revenue beat(4)13.63%
Revenue beat(8)7
Avg Revenue beat(8)4.54%
Revenue beat(12)7
Avg Revenue beat(12)-5.98%
Revenue beat(16)8
Avg Revenue beat(16)-7.39%
PT rev (1m)-1.37%
PT rev (3m)2.86%
EPS NQ rev (1m)-2.63%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-4.45%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 17.86 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 5.4 | ||
| P/B | 2.35 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 10.81 |
EPS(TTM)1.75
EY5.79%
EPS(NY)1.69
Fwd EY5.6%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)5.6
OCFY18.53%
SpS39.53
BVpS12.87
TBVpS10.17
PEG (NY)N/A
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 16.29% | ||
| ROCE | 5.55% | ||
| ROIC | 4.78% | ||
| ROICexc | 4.91% | ||
| ROICexgc | 5.25% | ||
| OM | 13.9% | ||
| PM (TTM) | 5.31% | ||
| GM | 20.76% | ||
| FCFM | N/A |
ROA(3y)1.36%
ROA(5y)0.79%
ROE(3y)11.28%
ROE(5y)6.41%
ROIC(3y)2.45%
ROIC(5y)2.82%
ROICexc(3y)2.48%
ROICexc(5y)2.87%
ROICexgc(3y)2.64%
ROICexgc(5y)3.06%
ROCE(3y)2.84%
ROCE(5y)3.28%
ROICexcg growth 3Y7.45%
ROICexcg growth 5Y1.24%
ROICexc growth 3Y7.06%
ROICexc growth 5Y1.24%
OM growth 3Y-6.02%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5Y-10.64%
GM growth 3Y-10.39%
GM growth 5Y-4.91%
F-Score8
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.65 | ||
| Cap/Depr | 194.17% | ||
| Cap/Sales | 17.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.77% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 0.97 |
F-Score8
WACC7.47%
ROIC/WACC0.64
Cap/Depr(3y)268.93%
Cap/Depr(5y)300.31%
Cap/Sales(3y)36.78%
Cap/Sales(5y)37.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.81%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-52.44%
EPS Next Y-3.33%
EPS Next 2Y10.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-21.12%
Revenue Next Year-10.13%
Revenue Next 2Y-1.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y69.57%
EBIT growth 3Y7.39%
EBIT growth 5Y3.51%
EBIT Next Year95.09%
EBIT Next 3Y29.05%
EBIT Next 5YN/A
FCF growth 1Y86.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y294.6%
OCF growth 3Y-23.17%
OCF growth 5Y-4.85%