Triton International Ltd (TRTN) Stock Fundamental Analysis
NYSE:TRTN - New York Stock Exchange, Inc. - BMG9078F1077 - Common Stock - Currency: USD
Taking everything into account, TRTN scores 6 out of 10 in our fundamental rating. TRTN was compared to 49 industry peers in the Trading Companies & Distributors industry. While TRTN has a great profitability rating, there are some minor concerns on its financial health. TRTN is cheap, but on the other hand it scores bad on growth. This makes TRTN very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRTN was profitable.
In the past year TRTN had a positive cash flow from operations.
TRTN had positive earnings in each of the past 5 years.
TRTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.08%, TRTN is in line with its industry, outperforming 50.00% of the companies in the same industry.
TRTN has a Return On Equity of 18.18%. This is in the better half of the industry: TRTN outperforms 61.11% of its industry peers.
With a Return On Invested Capital value of 6.77%, TRTN perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRTN is below the industry average of 9.16%.
The 3 year average ROIC (6.38%) for TRTN is below the current ROIC(6.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 18.18% | ||
| ROIC | 6.77% |
ROA(3y)4.18%
ROA(5y)3.89%
ROE(3y)16.24%
ROE(5y)15.6%
ROIC(3y)6.38%
ROIC(5y)6.37%
1.3 Margins
With an excellent Profit Margin value of 34.24%, TRTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TRTN has grown nicely.
With an excellent Operating Margin value of 49.59%, TRTN belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
TRTN's Operating Margin has improved in the last couple of years.
TRTN's Gross Margin of 89.66% is amongst the best of the industry. TRTN outperforms 98.15% of its industry peers.
TRTN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.59% | ||
| PM (TTM) | 34.24% | ||
| GM | 89.66% |
OM growth 3Y2.76%
OM growth 5Y3.52%
PM growth 3Y17.09%
PM growth 5Y5.79%
GM growth 3Y0.31%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRTN is creating some value.
TRTN has less shares outstanding than it did 1 year ago.
Compared to 1 year ago, TRTN has an improved debt to assets ratio.
2.2 Solvency
TRTN has an Altman-Z score of 1.05. This is a bad value and indicates that TRTN is not financially healthy and even has some risk of bankruptcy.
TRTN has a worse Altman-Z score (1.05) than 75.93% of its industry peers.
TRTN has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as TRTN would need 6.67 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.67, TRTN perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
TRTN has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of TRTN (2.33) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 1.05 |
ROIC/WACC1
WACC6.77%
2.3 Liquidity
A Current Ratio of 3.23 indicates that TRTN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.23, TRTN belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
TRTN has a Quick Ratio of 3.23. This indicates that TRTN is financially healthy and has no problem in meeting its short term obligations.
TRTN has a better Quick ratio (3.23) than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
TRTN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.15%.
Measured over the past years, TRTN shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.52% on average per year.
Looking at the last year, TRTN shows a decrease in Revenue. The Revenue has decreased by -4.70% in the last year.
The Revenue has been growing by 8.76% on average over the past years. This is quite good.
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y32.52%
EPS Q2Q%-18.49%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y8.76%
Sales Q2Q%-12.08%
3.2 Future
TRTN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.20% yearly.
Based on estimates for the next years, TRTN will show a decrease in Revenue. The Revenue will decrease by -3.13% on average per year.
EPS Next Y-14.94%
EPS Next 2Y-6.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.68%
Revenue Next 2Y-3.13%
Revenue Next 3YN/A
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 7.62 indicates a rather cheap valuation of TRTN.
Based on the Price/Earnings ratio, TRTN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
TRTN is valuated cheaply when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.99 indicates a rather cheap valuation of TRTN.
Based on the Price/Forward Earnings ratio, TRTN is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRTN to the average of the S&P500 Index (21.38), we can say TRTN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
61.11% of the companies in the same industry are more expensive than TRTN, based on the Enterprise Value to EBITDA ratio.
TRTN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TRTN is cheaper than 90.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
TRTN has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as TRTN's earnings are expected to decrease with -6.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-6.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRTN has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 3.06. TRTN pays more dividend than 100.00% of the companies in the same industry.
TRTN's Dividend Yield is a higher than the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
On average, the dividend of TRTN grows each year by 14.82%, which is quite nice.
TRTN has been paying a dividend for over 5 years, so it has already some track record.
TRTN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
35.09% of the earnings are spent on dividend by TRTN. This is a low number and sustainable payout ratio.
DP35.09%
EPS Next 2Y-6.2%
EPS Next 3YN/A
79.55
-3.4 (-4.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners49.07%
Ins Owner Change0%
Market Cap4.38B
Analysts77.78
Price Target81.35 (2.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend3.49
Dividend Growth(5Y)14.82%
DP35.09%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.05%
Min EPS beat(2)-0.23%
Max EPS beat(2)2.32%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-0.23%
Max EPS beat(4)2.32%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.47%
Min Revenue beat(2)2.03%
Max Revenue beat(2)2.91%
Revenue beat(4)4
Avg Revenue beat(4)4.11%
Min Revenue beat(4)1.94%
Max Revenue beat(4)9.56%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.31%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 | ||
| P/S | 2.52 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.01 | ||
| P/B | 1.34 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)10.44
EY13.12%
EPS(NY)9.96
Fwd EY12.52%
FCF(TTM)20.75
FCFY26.08%
OCF(TTM)26.43
OCFY33.22%
SpS31.54
BVpS59.39
TBVpS55.02
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 18.18% | ||
| ROCE | 7.42% | ||
| ROIC | 6.77% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 7.05% | ||
| OM | 49.59% | ||
| PM (TTM) | 34.24% | ||
| GM | 89.66% | ||
| FCFM | 65.79% |
ROA(3y)4.18%
ROA(5y)3.89%
ROE(3y)16.24%
ROE(5y)15.6%
ROIC(3y)6.38%
ROIC(5y)6.37%
ROICexc(3y)6.42%
ROICexc(5y)6.41%
ROICexgc(3y)6.63%
ROICexgc(5y)6.63%
ROCE(3y)6.98%
ROCE(5y)6.97%
ROICexcg growth 3Y2.96%
ROICexcg growth 5Y6.52%
ROICexc growth 3Y3.08%
ROICexc growth 5Y6.88%
OM growth 3Y2.76%
OM growth 5Y3.52%
PM growth 3Y17.09%
PM growth 5Y5.79%
GM growth 3Y0.31%
GM growth 5Y-0.34%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 5.19 | ||
| Cap/Depr | 51.36% | ||
| Cap/Sales | 18% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 99.01% | ||
| Profit Quality | 192.17% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z | 1.05 |
F-Score7
WACC6.77%
ROIC/WACC1
Cap/Depr(3y)278.08%
Cap/Depr(5y)234.64%
Cap/Sales(3y)103.27%
Cap/Sales(5y)87.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y32.52%
EPS Q2Q%-18.49%
EPS Next Y-14.94%
EPS Next 2Y-6.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y8.76%
Sales Q2Q%-12.08%
Revenue Next Year-7.68%
Revenue Next 2Y-3.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.88%
EBIT growth 3Y11.49%
EBIT growth 5Y12.59%
EBIT Next Year38.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y203.71%
FCF growth 3Y4.65%
FCF growth 5YN/A
OCF growth 1Y27.58%
OCF growth 3Y21.08%
OCF growth 5Y16.79%