TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
26.685 USD
+0.3 (+1.16%)
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 has a expensive valuation and it also scores bad on growth.
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.
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: 63.85% of the companies in the same industry are doing better.
TRN has a Return On Equity (9.53%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.72%, TRN is doing worse than 63.85% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.34%.
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
Looking at the Profit Margin, with a value of 4.39%, TRN is in line with its industry, outperforming 50.77% of the companies in the same industry.
TRN's Profit Margin has been stable in the last couple of years.
TRN has a Operating Margin of 16.82%. This is in the better half of the industry: TRN outperforms 78.46% 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 60.77% 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
TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TRN has about the same amount of shares outstanding.
Compared to 5 years ago, TRN has less shares outstanding
TRN has a better debt/assets ratio than last year.
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 80.77% 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's Debt to Equity ratio of 5.94 is on the low side compared to the rest of the industry. TRN is outperformed by 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.52
WACC7.2%
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 41.54% 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.
The Quick ratio of TRN (0.80) is worse than 75.38% of its industry peers.
| 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%.
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 3.12% yearly.
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.
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
A Price/Earnings ratio of 21.87 indicates a rather expensive valuation of TRN.
TRN's Price/Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 63.08% of the companies in the same industry.
TRN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
With a Price/Forward Earnings ratio of 17.05, TRN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 67.69% of the companies in the same industry.
TRN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 17.05 |
4.2 Price Multiples
68.46% 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 | 12.03 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.3
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.71%, which is a nice return.
Compared to an average industry Dividend Yield of 1.97, TRN pays a better dividend. On top of this TRN pays more dividend than 96.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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
102.41% 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.
DP102.41%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
NYSE:TRN (11/26/2025, 2:36:54 PM)
26.685
+0.3 (+1.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-0.37%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.16B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target27.54 (3.2%)
Short Float %2.93%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.71% |
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)-5.26%
PT rev (3m)-5.26%
EPS NQ rev (1m)29.63%
EPS NQ rev (3m)53.85%
EPS NY rev (1m)10.71%
EPS NY rev (3m)14.81%
Revenue NQ rev (1m)-5.06%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-3.93%
Revenue NY rev (3m)-6.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.87 | ||
| Fwd PE | 17.05 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 5.62 | ||
| P/B | 2.16 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 12.03 |
EPS(TTM)1.22
EY4.57%
EPS(NY)1.57
Fwd EY5.87%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)4.75
OCFY17.8%
SpS26.91
BVpS12.38
TBVpS9.64
PEG (NY)N/A
PEG (5Y)3.3
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
WACC7.2%
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 21.87 and the Price/Book (PB) ratio is 2.16.
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.