TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
26.95 USD
+0.51 (+1.93%)
26.95 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. TRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRN does not seem to be growing, but still is valued expensively.
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.
TRN had positive earnings in 4 of the past 5 years.
Of the past 5 years TRN 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.07%, TRN is doing worse than 62.88% of the companies in the same industry.
With a decent Return On Equity value of 9.53%, TRN is doing good in the industry, outperforming 60.61% of the companies in the same industry.
With a Return On Invested Capital value of 3.72%, TRN is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
TRN had an Average Return On Invested Capital over the past 3 years of 3.30%. This is significantly below the industry average of 10.27%.
The 3 year average ROIC (3.30%) for TRN is below the current ROIC(3.72%), indicating increased profibility in the last year.
| 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 51.52% 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 Operating Margin of 16.82%. This is in the better half of the industry: TRN outperforms 79.55% 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 in line compared to the rest of the industry. TRN outperforms 40.15% 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
TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
Compared to 5 years ago, TRN has less shares outstanding
The debt/assets ratio for TRN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.76, we must say that TRN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRN (0.76) is worse than 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 89.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.51
WACC7.27%
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.
Looking at the Current ratio, with a value of 1.88, TRN is in line with its industry, outperforming 42.42% 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.
TRN has a Quick ratio of 0.80. This is in the lower half of the industry: TRN underperforms 76.52% 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.
Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -33.03% in the last year.
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
The Earnings Per Share is expected to grow by 3.12% on average over the next years.
The Revenue is expected to decrease by -7.93% 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-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 22.09, the valuation of TRN can be described as rather expensive.
Based on the Price/Earnings ratio, TRN is valued a bit cheaper than 62.88% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, TRN is valued at the same level.
With a Price/Forward Earnings ratio of 17.21, TRN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 69.70% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 17.21 |
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 68.18% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.01 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.34
EPS Next 2Y-5.42%
EPS Next 3Y3.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.46%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is rather good when compared to the industry average which is at 0.98. TRN pays more dividend than 96.97% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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.
TRN has decreased its dividend 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%
26.95
+0.51 (+1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.92%
Inst Owner Change-0.38%
Ins Owners1.24%
Ins Owner Change0%
Market Cap2.16B
Revenue(TTM)2.18B
Net Income(TTM)95.40M
Analysts46.67
Price Target26.01 (-3.49%)
Short Float %3.74%
Short Ratio5.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.46% |
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)-5.56%
PT rev (3m)-10.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.85%
EPS NY rev (1m)0%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.62%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-7.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.09 | ||
| Fwd PE | 17.21 | ||
| P/S | 0.99 | ||
| P/FCF | N/A | ||
| P/OCF | 5.63 | ||
| P/B | 2.16 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 12.01 |
EPS(TTM)1.22
EY4.53%
EPS(NY)1.57
Fwd EY5.81%
FCF(TTM)-4.94
FCFYN/A
OCF(TTM)4.79
OCFY17.77%
SpS27.13
BVpS12.48
TBVpS9.72
PEG (NY)N/A
PEG (5Y)3.34
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
WACC7.27%
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 5 / 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%.