Triton International Ltd (TRTN) Fundamental Analysis & Valuation

NYSE:TRTN • BMG9078F1077

79.55 USD
-3.4 (-4.1%)
At close: Sep 27, 2023
81.57 USD
+2.02 (+2.54%)
After Hours: 9/27/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This TRTN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Taking everything into account, TRTN scores 5 out of 10 in our fundamental rating. TRTN was compared to 47 industry peers in the Trading Companies & Distributors industry. TRTN has an average financial health and profitability rating. TRTN has a bad growth rate and is valued cheaply. Finally TRTN also has an excellent dividend rating. These ratings could make TRTN a good candidate for value and dividend investing.


Dividend Valuation Growth Profitability Health

6

1. TRTN Profitability Analysis

1.1 Basic Checks

  • TRTN had positive earnings in the past year.
  • In the past year TRTN had a positive cash flow from operations.
TRTN Yearly Net Income VS EBIT VS OCF VS FCFTRTN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B -1B -2B

1.2 Ratios

  • TRTN has a Return On Assets (5.08%) which is in line with its industry peers.
  • The Return On Equity of TRTN (18.18%) is better than 61.11% of its industry peers.
  • TRTN's Return On Invested Capital of 6.77% is in line compared to the rest of the industry. TRTN outperforms 46.30% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TRTN is below the industry average of 9.21%.
  • 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 RankSector 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%
TRTN Yearly ROA, ROE, ROICTRTN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

1.3 Margins

  • TRTN has a Profit Margin of 34.24%. This is amongst the best in the industry. TRTN outperforms 100.00% of its industry peers.
  • TRTN's Profit Margin has improved in the last couple of years.
  • 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.
  • With an excellent Gross Margin value of 89.66%, TRTN belongs to the best of the industry, outperforming 98.15% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TRTN has remained more or less at the same level.
Industry RankSector 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%
TRTN Yearly Profit, Operating, Gross MarginsTRTN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. TRTN Health Analysis

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.
TRTN Yearly Shares OutstandingTRTN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M
TRTN Yearly Total Debt VS Total AssetsTRTN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.2 Solvency

  • Based on the Altman-Z score of 1.05, we must say that TRTN is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of TRTN (1.05) is worse 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.
  • TRTN has a Debt to FCF ratio (6.67) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt financing.
  • TRTN has a Debt to Equity ratio of 2.33. This is in the lower half of the industry: TRTN underperforms 72.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.33
Debt/FCF 6.67
Altman-Z 1.05
ROIC/WACC1
WACC6.77%
TRTN Yearly LT Debt VS Equity VS FCFTRTN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 2B -2B 4B 6B 8B

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 RankSector Rank
Current Ratio 3.23
Quick Ratio 3.23
TRTN Yearly Current Assets VS Current LiabilitesTRTN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. TRTN Growth Analysis

3.1 Past

  • The earnings per share for TRTN have decreased by -3.15% in the last year.
  • TRTN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.52% yearly.
  • Looking at the last year, TRTN shows a decrease in Revenue. The Revenue has decreased by -4.70% in the last year.
  • TRTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.76% yearly.
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

  • Based on estimates for the next years, TRTN will show a decrease in Earnings Per Share. The EPS will decrease by -6.20% on average per year.
  • 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

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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.
TRTN Yearly Revenue VS EstimatesTRTN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
TRTN Yearly EPS VS EstimatesTRTN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

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Find the best growth stocksShow best growing peers

8

4. TRTN Valuation Analysis

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.
  • TRTN is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • TRTN is valuated cheaply with a Price/Forward Earnings ratio of 7.99.
  • Based on the Price/Forward Earnings ratio, TRTN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of TRTN to the average of the S&P500 Index (25.11), we can say TRTN is valued rather cheaply.
Industry RankSector Rank
PE 7.62
Fwd PE 7.99
TRTN Price Earnings VS Forward Price EarningsTRTN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRTN indicates a somewhat cheap valuation: TRTN is cheaper than 61.11% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRTN indicates a rather cheap valuation: TRTN is cheaper than 90.74% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 3.83
EV/EBITDA 8.13
TRTN Per share dataTRTN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The decent profitability rating of TRTN may justify a higher PE ratio.
  • TRTN's earnings are expected to decrease with -6.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-6.2%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. TRTN Dividend Analysis

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 0.80. TRTN pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TRTN pays a better dividend.
Industry RankSector 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.
  • As TRTN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.82%
Div Incr Years6
Div Non Decr Years6
TRTN Yearly Dividends per shareTRTN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 0.5 1 1.5 2 2.5

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
TRTN Yearly Income VS Free CF VS DividendTRTN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B -1.5B -2B
TRTN Dividend Payout.TRTN Dividend Payout, showing the Payout Ratio.TRTN Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

TRTN Fundamentals: All Metrics, Ratios and Statistics

Triton International Ltd

NYSE:TRTN (9/27/2023, 8:04:00 PM)

After market: 81.57 +2.02 (+2.54%)

79.55

-3.4 (-4.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)08-01
Earnings (Next)10-30
Inst Owners0%
Inst Owner Change0%
Ins Owners49.07%
Ins Owner Change0%
Market Cap4.38B
Revenue(TTM)1.74B
Net Income(TTM)594.51M
Analysts77.78
Price Target81.35 (2.26%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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%
ROICexgc growth 3Y2.96%
ROICexgc 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 RankSector 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%

Triton International Ltd / TRTN FAQ

What is the fundamental rating for TRTN stock?

ChartMill assigns a fundamental rating of 6 / 10 to TRTN.


Can you provide the valuation status for Triton International Ltd?

ChartMill assigns a valuation rating of 8 / 10 to Triton International Ltd (TRTN). This can be considered as Undervalued.


What is the profitability of TRTN stock?

Triton International Ltd (TRTN) has a profitability rating of 7 / 10.


What is the financial health of Triton International Ltd (TRTN) stock?

The financial health rating of Triton International Ltd (TRTN) is 5 / 10.


Can you provide the dividend sustainability for TRTN stock?

The dividend rating of Triton International Ltd (TRTN) is 6 / 10 and the dividend payout ratio is 35.09%.