TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
NYSE:TRN - New York Stock Exchange, Inc. - US8965221091 - Common Stock
Taking everything into account, TRN scores 4 out of 10 in our fundamental rating. TRN was compared to 131 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 correct valuation and a medium growth rate.
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
TRN has a Return On Assets (1.95%) which is in line with its industry peers.
With a decent Return On Equity value of 16.29%, TRN is doing good in the industry, outperforming 72.44% of the companies in the same industry.
The Return On Invested Capital of TRN (4.78%) is worse than 61.42% of its industry peers.
TRN had an Average Return On Invested Capital over the past 3 years of 2.45%. This is significantly below the industry average of 11.17%.
The 3 year average ROIC (2.45%) for TRN is below the current ROIC(4.78%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.31%, TRN is in line with its industry, outperforming 53.54% of the companies in the same industry.
TRN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 13.90%, TRN is doing good in the industry, outperforming 69.29% of the companies in the same industry.
TRN's Operating Margin has been stable in the last couple of years.
The Gross Margin of TRN (20.76%) is worse than 74.02% of its industry peers.
In the last couple of years the Gross Margin of TRN has declined.
| 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
TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRN has more 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 a worse debt to assets ratio.
2.2 Solvency
TRN has an Altman-Z score of 1.01. 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 1.01 is on the low side compared to the rest of the industry. TRN is outperformed by 80.31% 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.
The Debt to Equity ratio of TRN (5.39) is worse than 96.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.58
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.68 indicates that TRN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.68, TRN is not doing good in the industry: 70.08% of the companies in the same industry are doing better.
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.
The Quick ratio of TRN (0.90) is worse than 74.80% 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 118.00% over the past year.
The Earnings Per Share has been decreasing by -0.71% on average over the past years.
TRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.97%.
TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)118%
EPS 3Y59.51%
EPS 5Y-0.71%
EPS Q2Q%42.31%
Revenue 1Y (TTM)16.97%
Revenue growth 3Y14.27%
Revenue growth 5Y3.52%
Sales Q2Q%-2.74%
3.2 Future
TRN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.31% yearly.
Based on estimates for the next years, TRN will show a small growth in Revenue. The Revenue will grow by 0.08% on average per year.
EPS Next Y30.64%
EPS Next 2Y11.54%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue Next Year2.44%
Revenue Next 2Y-3.97%
Revenue Next 3Y0.08%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of TRN.
TRN's Price/Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 76.38% of the companies in the same industry.
When comparing the Price/Earnings ratio of TRN to the average of the S&P500 Index (27.96), we can say TRN is valued slightly cheaper.
TRN is valuated rather expensively with a Price/Forward Earnings ratio of 22.24.
TRN's Price/Forward Earnings is on the same level as the industry average.
TRN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.11.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 22.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 70.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.56 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TRN's earnings are expected to grow with 16.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)N/A
EPS Next 2Y11.54%
EPS Next 3Y16.31%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 3.19%. 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 1.66. TRN pays more dividend than 92.91% of the companies in the same industry.
TRN's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 14.14%!
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)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.
TRN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP53.05%
EPS Next 2Y11.54%
EPS Next 3Y16.31%
TRINITY INDUSTRIES INC
NYSE:TRN (1/17/2025, 8:04:00 PM)
After market: 38.18 0 (0%)38.18
+0.6 (+1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.67%
Inst Owner Change0%
Ins Owners0.99%
Ins Owner Change0%
Market Cap3.14B
Analysts46.67
Price Target37.23 (-2.49%)
Short Float %2.71%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)0%
PT rev (3m)7.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.98%
EPS NY rev (1m)0%
EPS NY rev (3m)15.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 22.24 | ||
| P/S | 0.97 | ||
| P/FCF | N/A | ||
| P/OCF | 6.82 | ||
| P/B | 2.97 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 11.56 |
EPS(TTM)2.18
EY5.71%
EPS(NY)1.72
Fwd EY4.5%
FCF(TTM)-1.34
FCFYN/A
OCF(TTM)5.6
OCFY14.67%
SpS39.53
BVpS12.87
TBVpS10.17
PEG (NY)0.57
PEG (5Y)N/A
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 | 1.01 |
F-Score8
WACC8.17%
ROIC/WACC0.58
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)118%
EPS 3Y59.51%
EPS 5Y-0.71%
EPS Q2Q%42.31%
EPS Next Y30.64%
EPS Next 2Y11.54%
EPS Next 3Y16.31%
EPS Next 5YN/A
Revenue 1Y (TTM)16.97%
Revenue growth 3Y14.27%
Revenue growth 5Y3.52%
Sales Q2Q%-2.74%
Revenue Next Year2.44%
Revenue Next 2Y-3.97%
Revenue Next 3Y0.08%
Revenue Next 5YN/A
EBIT growth 1Y69.57%
EBIT growth 3Y7.39%
EBIT growth 5Y3.51%
EBIT Next Year95.38%
EBIT Next 3Y29.23%
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%