TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
26.53 USD
+0.15 (+0.57%)
26.53 USD
0 (0%)
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. TRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
Of the past 5 years TRN 4 years were profitable.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of TRN (1.07%) is worse than 63.85% of its industry peers.
TRN's Return On Equity of 9.53% is in line compared to the rest of the industry. TRN outperforms 60.00% of its industry peers.
The Return On Invested Capital of TRN (3.72%) is worse than 63.85% 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 10.39%.
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.
With a decent Operating Margin value of 16.82%, TRN is doing good in the industry, outperforming 78.46% of the companies in the same industry.
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 60.77% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRN 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.
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
TRN has an Altman-Z score of 0.76. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
TRN's Altman-Z score of 0.76 is on the low side compared to the rest of the industry. TRN is outperformed by 80.00% of its industry peers.
TRN has a Debt/Equity ratio of 5.94. This is a high value indicating a heavy dependency on external financing.
TRN has a worse Debt to Equity ratio (5.94) than 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
WACC7.21%
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.
With a Current ratio value of 1.88, TRN perfoms like the industry average, outperforming 41.54% of the companies in the same industry.
A Quick Ratio of 0.80 indicates that TRN may have some problems paying its short term obligations.
With a Quick ratio value of 0.80, TRN is not doing good in the industry: 75.38% of the companies in the same industry are doing better.
| 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.
The Earnings Per Share has been growing slightly by 6.62% on average over the past years.
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.
Based on estimates for the next years, TRN will show a decrease in Revenue. The Revenue will decrease by -7.67% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 21.75.
Compared to the rest of the industry, the Price/Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 60.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, TRN is valued at the same level.
The Price/Forward Earnings ratio is 16.95, which 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 66.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 16.95 |
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 | 12.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.28
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.53%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.90, 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 2.32, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
5.2 History
On average, the dividend of TRN grows each year by 11.90%, which is quite nice.
TRN has been paying a dividend for at least 10 years, so it has 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.
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%
26.53
+0.15 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-0.38%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.13B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target27.54 (3.81%)
Short Float %3.37%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.53% |
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 | 21.75 | ||
| Fwd PE | 16.95 | ||
| P/S | 0.98 | ||
| P/FCF | N/A | ||
| P/OCF | 5.54 | ||
| P/B | 2.13 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)1.22
EY4.6%
EPS(NY)1.57
Fwd EY5.9%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY18.05%
SpS27.13
BVpS12.48
TBVpS9.72
PEG (NY)N/A
PEG (5Y)3.28
Graham Number18.51
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 21.75 and the Price/Book (PB) ratio is 2.13.
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.