TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
27.35 USD
-0.13 (-0.47%)
27.35 USD
0 (0%)
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. There are concerns on the financial health of TRN while its profitability can be described as average. TRN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year TRN was profitable.
- 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
- TRN has a Return On Assets of 1.07%. This is in the lower half of the industry: TRN underperforms 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.
- 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
- Looking at the Profit Margin, with a value of 4.39%, TRN is in line with its industry, outperforming 50.76% of the companies in the same industry.
- In the last couple of years the Profit Margin of TRN has remained more or less at the same level.
- TRN has a better Operating Margin (16.82%) than 78.79% of its industry peers.
- In the last couple of years the Operating Margin of TRN has grown nicely.
- TRN's Gross Margin of 26.30% is on the low side compared to the rest of the industry. TRN is outperformed by 60.61% of its industry peers.
- 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.
- The number of shares outstanding for TRN remains at a similar level compared to 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 0.77. 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 0.77. This is in the lower half of the industry: TRN underperforms 79.55% 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.
- 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
WACC7.31%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that TRN should not have too much problems paying 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.
- TRN has a Quick ratio of 0.80. This is in the lower half of the industry: TRN underperforms 77.27% 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.
- 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%.
- TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.49% yearly.
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
- Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 3.12% on average per year.
- TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -7.93% 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-14.83%
Revenue Next 3Y-7.93%
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 22.42, the valuation of TRN can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 67.42% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of TRN to the average of the S&P500 Index (27.54), we can say TRN is valued inline with the index average.
- With a Price/Forward Earnings ratio of 17.47, TRN is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 76.52% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 17.47 |
4.2 Price Multiples
- TRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRN is cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.14 |
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
- TRN has a Yearly Dividend Yield of 4.22%, which is a nice return.
- Compared to an average industry Dividend Yield of 0.80, TRN pays a better dividend. On top of this TRN pays more dividend than 98.48% 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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%
27.35
-0.13 (-0.47%)
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 Change0.03%
Ins Owners1.24%
Ins Owner Change0%
Market Cap2.19B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target26.01 (-4.9%)
Short Float %3.74%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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)0%
PT rev (3m)-10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)29.63%
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 | 22.42 | ||
| Fwd PE | 17.47 | ||
| P/S | 1.01 | ||
| P/FCF | N/A | ||
| P/OCF | 5.71 | ||
| P/B | 2.19 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | 12.14 |
EPS(TTM)1.22
EY4.46%
EPS(NY)1.57
Fwd EY5.72%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY17.51%
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
WACC7.31%
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-14.83%
Revenue Next 3Y-7.93%
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%.