Triton International Ltd (TRTN) Stock Fundamental Analysis
USA - NYSE:TRTN - BMG9078F1077 - Common Stock
79.55 USD
-3.4 (-4.1%)
81.57 USD
+2.02 (+2.54%)
We assign a fundamental rating of 6 out of 10 to TRTN. TRTN was compared to 50 industry peers in the Trading Companies & Distributors industry. TRTN scores excellent on profitability, but there are some minor concerns on its financial health. TRTN is valued quite cheap, but it does not seem to be growing. With these ratings, TRTN could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year TRTN was profitable.
TRTN had a positive operating cash flow in the past year.
TRTN had positive earnings in each of the past 5 years.
Each year in the past 5 years TRTN had a positive operating cash flow.
1.2 Ratios
TRTN has a Return On Assets of 5.08%. This is comparable to the rest of the industry: TRTN outperforms 50.00% of its industry peers.
TRTN has a better Return On Equity (18.18%) than 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.
The Average Return On Invested Capital over the past 3 years for TRTN is below the industry average of 10.24%.
The last Return On Invested Capital (6.77%) for TRTN is above the 3 year average (6.38%), which is a sign of increasing profitability.
| 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.
TRTN has a better Operating Margin (49.59%) than 94.44% of its industry peers.
In the last couple of years the Operating Margin of TRTN has grown nicely.
TRTN's Gross Margin of 89.66% is amongst the best of the industry. TRTN outperforms 98.15% of its industry peers.
In the last couple of years the Gross Margin of TRTN has remained more or less at the same level.
| 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
TRTN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for TRTN has been reduced compared to 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 Altman-Z score of 1.05. This is in the lower half of the industry: TRTN underperforms 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.
TRTN's Debt to FCF ratio of 6.67 is in line compared to the rest of the industry. TRTN outperforms 59.26% of its industry peers.
A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.33, TRTN is doing worse than 72.22% of the companies in the same industry.
| 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.
TRTN has a better Current ratio (3.23) than 87.04% of its industry peers.
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.
Looking at the Quick ratio, with a value of 3.23, TRTN belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
The earnings per share for TRTN have decreased by -3.15% in the last year.
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.
The Revenue has decreased by -4.70% in the past year.
Measured over the past years, TRTN shows a quite strong growth in Revenue. The Revenue has been growing by 8.76% on average per year.
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.
TRTN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.13% yearly.
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
The Price/Earnings ratio is 7.62, which indicates a rather cheap valuation of TRTN.
Compared to the rest of the industry, the Price/Earnings ratio of TRTN indicates a rather cheap valuation: TRTN is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, TRTN is valued rather cheaply.
The Price/Forward Earnings ratio is 7.99, which indicates a rather cheap valuation of TRTN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRTN indicates a rather cheap valuation: TRTN is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.73. TRTN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTN is valued a bit cheaper than 61.11% of the companies in the same industry.
90.74% of the companies in the same industry are more expensive than TRTN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
The decent profitability rating of TRTN 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
With a Yearly Dividend Yield of 3.52%, TRTN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.75, TRTN pays a better dividend. On top of this TRTN pays more dividend than 100.00% of the companies listed in the same industry.
TRTN's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| 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
TRTN pays out 35.09% of its income as dividend. This is a 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%