TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
25.8 USD
+0.3 (+1.18%)
25.8 USD
0 (0%)
Taking everything into account, TRN scores 3 out of 10 in our fundamental rating. 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 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.
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
TRN's Return On Assets of 1.07% is on the low side compared to the rest of the industry. TRN is outperformed by 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.
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.
The Average Return On Invested Capital over the past 3 years for TRN 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 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.
With a Gross Margin value of 26.30%, TRN is not doing good in the industry: 60.77% of the companies in the same industry are doing better.
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
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
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 has a Altman-Z score of 0.76. This is amonst the worse of the industry: TRN underperforms 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 has a Debt to Equity ratio of 5.94. This is amonst the worse of the industry: TRN underperforms 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
WACC7.16%
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.
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
The earnings per share for TRN have decreased strongly by -44.04% 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.
TRN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -33.03%.
The Revenue has been growing slightly by 0.49% on average over the past years.
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.
The Revenue is expected to decrease by -7.67% on average over the next years.
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
Based on the Price/Earnings ratio of 21.15, the valuation of TRN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as TRN.
TRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.48, TRN is valued correctly.
66.92% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of TRN to the average of the S&P500 Index (34.46), we can say TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 68.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.19
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 1.95, 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 2.42, 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 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
102.41% of the earnings are spent on dividend by TRN. 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%
25.8
+0.3 (+1.18%)
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 Cap2.09B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target27.54 (6.74%)
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 | 21.15 | ||
| Fwd PE | 16.48 | ||
| P/S | 0.96 | ||
| P/FCF | N/A | ||
| P/OCF | 5.43 | ||
| P/B | 2.08 | ||
| P/tB | 2.68 | ||
| EV/EBITDA | 11.96 |
EPS(TTM)1.22
EY4.73%
EPS(NY)1.57
Fwd EY6.07%
FCF(TTM)-4.9
FCFYN/A
OCF(TTM)4.75
OCFY18.41%
SpS26.91
BVpS12.38
TBVpS9.64
PEG (NY)N/A
PEG (5Y)3.19
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
WACC7.16%
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 21.15 and the Price/Book (PB) ratio is 2.08.
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.