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 48 industry peers in the Trading Companies & Distributors industry. While TRTN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TRTN is valued quite cheap, but it does not seem to be growing. Finally TRTN also has an excellent dividend rating. With these ratings, TRTN could be worth investigating further for value and dividend 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.
Each year in the past 5 years TRTN has been profitable.
Each year in the past 5 years TRTN had a positive operating cash flow.
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.
The Return On Equity of TRTN (18.18%) is better than 61.11% of its industry peers.
TRTN has a Return On Invested Capital (6.77%) which is comparable to the rest of the industry.
TRTN had an Average Return On Invested Capital over the past 3 years of 6.38%. This is below the industry average of 9.88%.
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
The Profit Margin of TRTN (34.24%) is better than 100.00% of its industry peers.
TRTN's Profit Margin has improved in the last couple of years.
TRTN's Operating Margin of 49.59% is amongst the best of the industry. TRTN outperforms 94.44% of its industry peers.
TRTN's Operating Margin has improved in the last couple of years.
TRTN has a better Gross Margin (89.66%) than 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRTN is still creating some value.
The number of shares outstanding for TRTN has been reduced compared to 1 year ago.
The debt/assets ratio for TRTN has been reduced compared to a year ago.
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.
The Debt to FCF ratio of TRTN is 6.67, which is on the high side as it means it would take TRTN, 6.67 years of fcf income to pay off 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.
TRTN has a worse Debt to Equity ratio (2.33) 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.
TRTN has a better Current ratio (3.23) than 87.04% of its industry peers.
A Quick Ratio of 3.23 indicates that TRTN has no problem at all paying 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
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.
TRTN shows a decrease in Revenue. In the last year, the revenue decreased by -4.70%.
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
The Earnings Per Share is expected to decrease by -6.20% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.62, which indicates a rather cheap valuation of TRTN.
83.33% of the companies in the same industry are more expensive than TRTN, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.62, TRTN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.99, the valuation of TRTN can be described as very cheap.
83.33% of the companies in the same industry are more expensive than TRTN, based on the Price/Forward Earnings ratio.
TRTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| 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 the industry average as 61.11% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, TRTN is valued 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
With a Yearly Dividend Yield of 3.52%, TRTN has a reasonable but not impressive dividend return.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 1.90. TRTN pays more dividend than 100.00% of the companies in the same industry.
TRTN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| 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%