Triton International Ltd (TRTN) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 5 out of 10 to TRTN. TRTN was compared to 50 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.
1. Profitability
1.1 Basic Checks
- TRTN had positive earnings in the past year.
- TRTN had a positive operating cash flow in the past year.
1.2 Ratios
- TRTN has a Return On Assets (5.08%) which is in line with its industry peers.
- TRTN has a better Return On Equity (18.18%) than 61.11% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.77%, TRTN is in line with its industry, 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 9.63%.
- 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
- TRTN has a Profit Margin of 34.24%. This is amongst the best in the industry. TRTN outperforms 100.00% of its industry peers.
- 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.
- TRTN's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 89.66%, TRTN belongs to the top 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 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.
- TRTN has a better debt/assets ratio than last year.
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.
- With a Altman-Z score value of 1.05, TRTN is not doing good in the industry: 75.93% of the companies in the same industry are doing better.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.67, TRTN is in line with its industry, outperforming 59.26% of the companies in the same industry.
- A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt 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
- TRTN has a Current Ratio of 3.23. This indicates that TRTN is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of TRTN (3.23) is better 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.
- TRTN has a Quick ratio of 3.23. This is amongst the best in the industry. TRTN outperforms 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.
- TRTN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.52% yearly.
- 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
- 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
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.62, the valuation of TRTN can be described as very cheap.
- TRTN's Price/Earnings ratio is rather cheap when compared to the industry. TRTN is cheaper than 83.33% of the companies in the same industry.
- When comparing the Price/Earnings ratio of TRTN to the average of the S&P500 Index (27.30), we can say TRTN is valued rather cheaply.
- 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 cheaply inside the industry as 83.33% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, 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.
- 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.
- TRTN's Dividend Yield is rather good when compared to the industry average which is at 1.35. 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
- The dividend of TRTN is nicely growing with an annual growth rate of 14.82%!
- 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)08-01 2023-08-01/bmo
Earnings (Next)10-30 2023-10-30/bmo
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 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
Graham NumberN/A
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%
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 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%
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%.