TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
27.4 USD
+0.78 (+2.93%)
27.4 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to TRN. TRN was compared to 132 industry peers in the Machinery industry. While TRN is still in line with the averages on profitability rating, there are concerns on its financial health. TRN has a expensive valuation and it also scores bad on growth.
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.
- 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 63.64% of its industry peers.
- TRN's Return On Equity of 9.53% is fine compared to the rest of the industry. TRN outperforms 60.61% of its industry peers.
- TRN has a Return On Invested Capital of 3.72%. This is in the lower half of the industry: TRN underperforms 64.39% of its industry peers.
- TRN had an Average Return On Invested Capital over the past 3 years of 3.30%. This 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
- TRN has a Profit Margin (4.39%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of TRN has remained more or less at the same level.
- With a decent Operating Margin value of 16.82%, TRN is doing good in the industry, outperforming 78.79% of the companies in the same industry.
- TRN's Operating Margin has improved in the last couple of years.
- TRN has a Gross Margin of 26.30%. This is in the lower half of the industry: TRN underperforms 60.61% 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.
- 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
- Based on the Altman-Z score of 0.77, we must say that TRN is in the distress zone and has some risk of bankruptcy.
- TRN's Altman-Z score of 0.77 is on the low side compared to the rest of the industry. TRN is outperformed by 80.30% 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.
- Looking at the Debt to Equity ratio, with a value of 5.94, TRN is doing worse than 88.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.51
WACC7.34%
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 of 1.88. This is comparable to the rest of the industry: TRN outperforms 42.42% of its industry peers.
- 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.
- Looking at the Quick ratio, with a value of 0.80, TRN is doing worse than 77.27% of the companies in the same industry.
| 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.
- Measured over the past 5 years, TRN shows a small growth in Earnings Per Share. The EPS has been growing by 6.62% on average per year.
- 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 -9.12% yearly.
EPS Next Y-10.54%
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
EPS Next 5YN/A
Revenue Next Year-31.4%
Revenue Next 2Y-15.67%
Revenue Next 3Y-9.12%
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
- A Price/Earnings ratio of 22.46 indicates a rather expensive valuation of TRN.
- Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 66.67% of the companies in the same industry.
- TRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 17.50, TRN is valued on the expensive side.
- 76.52% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
- TRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 17.5 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.39
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.51%, TRN is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.98, TRN pays a better dividend. On top of this TRN pays more dividend than 99.24% of the companies listed in the same industry.
- TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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
- TRN pays out 102.41% of its income as dividend. 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%
27.4
+0.78 (+2.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)02-18 2026-02-18/bmo
Inst Owners88.86%
Inst Owner Change0.01%
Ins Owners1.24%
Ins Owner Change0%
Market Cap2.20B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target26.52 (-3.21%)
Short Float %3.89%
Short Ratio4.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
Yearly Dividend1.14
Dividend Growth(5Y)11.9%
DP102.41%
Div Incr Years2
Div Non Decr Years2
Ex-Date01-15 2026-01-15 (0.31)
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)1.96%
PT rev (3m)-8.77%
EPS NQ rev (1m)115.71%
EPS NQ rev (3m)179.63%
EPS NY rev (1m)0%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.46 | ||
| Fwd PE | 17.5 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | 5.72 | ||
| P/B | 2.19 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 12.13 |
EPS(TTM)1.22
EY4.45%
EPS(NY)1.57
Fwd EY5.71%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY17.47%
SpS27.13
BVpS12.48
TBVpS9.72
PEG (NY)N/A
PEG (5Y)3.39
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 | 0.77 |
F-Score6
WACC7.34%
ROIC/WACC0.51
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-31.4%
Revenue Next 2Y-15.67%
Revenue Next 3Y-9.12%
Revenue Next 5YN/A
EBIT growth 1Y-18.96%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year53.81%
EBIT Next 3Y19.45%
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.
Can you provide the valuation status for TRINITY INDUSTRIES INC?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the financial health for TRN stock?
The financial health rating of TRINITY INDUSTRIES INC (TRN) is 2 / 10.
How sustainable is the dividend of TRINITY INDUSTRIES INC (TRN) stock?
The dividend rating of TRINITY INDUSTRIES INC (TRN) is 6 / 10 and the dividend payout ratio is 102.41%.