TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - NYSE:TRN - US8965221091 - Common Stock
28.04 USD
+0.24 (+0.86%)
28.04 USD
0 (0%)
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 129 industry peers in the Machinery industry. TRN has a medium profitability rating, but doesn't score so well on its financial health evaluation. TRN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
In the past year TRN had a positive cash flow from operations.
Of the past 5 years TRN 4 years were profitable.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
TRN has a Return On Assets of 1.10%. This is in the lower half of the industry: TRN underperforms 64.34% of its industry peers.
TRN's Return On Equity of 9.56% is in line compared to the rest of the industry. TRN outperforms 55.04% of its industry peers.
TRN has a Return On Invested Capital of 3.89%. This is in the lower half of the industry: TRN underperforms 64.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.00%.
The last Return On Invested Capital (3.89%) for TRN is above the 3 year average (3.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 9.56% | ||
| ROIC | 3.89% |
ROA(3y)1.15%
ROA(5y)0.79%
ROE(3y)9.74%
ROE(5y)7.69%
ROIC(3y)3.3%
ROIC(5y)2.93%
1.3 Margins
Looking at the Profit Margin, with a value of 3.83%, TRN is in line with its industry, outperforming 44.19% of the companies in the same industry.
TRN's Profit Margin has been stable in the last couple of years.
TRN has a better Operating Margin (15.03%) than 71.32% of its industry peers.
TRN's Operating Margin has improved in the last couple of years.
TRN has a worse Gross Margin (23.82%) than 65.89% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.03% | ||
| PM (TTM) | 3.83% | ||
| GM | 23.82% |
OM growth 3Y6.78%
OM growth 5Y2.31%
PM growth 3Y-27.93%
PM growth 5Y-0.11%
GM growth 3Y-2.46%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
TRN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
TRN has about the same amout of shares outstanding than it did 1 year ago.
TRN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
TRN has an Altman-Z score of 0.83. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
TRN's Altman-Z score of 0.83 is on the low side compared to the rest of the industry. TRN is outperformed by 75.97% of its industry peers.
A Debt/Equity ratio of 5.80 is on the high side and indicates that TRN has dependencies on debt financing.
With a Debt to Equity ratio value of 5.80, TRN is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.96 indicates that TRN should not have too much problems paying its short term obligations.
TRN's Current ratio of 1.96 is in line compared to the rest of the industry. TRN outperforms 48.84% of its industry peers.
A Quick Ratio of 1.01 indicates that TRN should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.01, TRN is not doing good in the industry: 62.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
The earnings per share for TRN have decreased strongly by -41.06% in the last year.
The Earnings Per Share has been growing slightly by 6.62% on average over the past years.
Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -22.95% in the last year.
The Revenue has been growing slightly by 0.49% on average over the past years.
EPS 1Y (TTM)-41.06%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-74.24%
Revenue 1Y (TTM)-22.95%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-39.84%
3.2 Future
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.21% yearly.
TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.51% yearly.
EPS Next Y-19.2%
EPS Next 2Y-0.22%
EPS Next 3Y2.21%
EPS Next 5YN/A
Revenue Next Year-26.19%
Revenue Next 2Y-11.03%
Revenue Next 3Y-4.51%
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
A Price/Earnings ratio of 22.98 indicates a rather expensive valuation of TRN.
Compared to the rest of the industry, the Price/Earnings ratio of TRN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.54. TRN is around the same levels.
With a Price/Forward Earnings ratio of 16.09, TRN is valued correctly.
68.22% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, TRN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 16.09 |
4.2 Price Multiples
TRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRN is cheaper than 68.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.47
EPS Next 2Y-0.22%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.31%, TRN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.79, TRN pays a better dividend. On top of this TRN pays more dividend than 97.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 11.90%!
TRN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TRN decreased in the last 3 years.
Dividend Growth(5Y)11.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
TRN pays out 99.90% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.9%
EPS Next 2Y-0.22%
EPS Next 3Y2.21%
28.04
+0.24 (+0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change-0.04%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.27B
Analysts46.67
Price Target29.07 (3.67%)
Short Float %3.62%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend1.14
Dividend Growth(5Y)11.9%
DP99.9%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-26.44%
Min EPS beat(2)-39.89%
Max EPS beat(2)-12.99%
EPS beat(4)1
Avg EPS beat(4)-13.03%
Min EPS beat(4)-39.89%
Max EPS beat(4)4.36%
EPS beat(8)4
Avg EPS beat(8)14.98%
EPS beat(12)5
Avg EPS beat(12)1.28%
EPS beat(16)6
Avg EPS beat(16)-2.78%
Revenue beat(2)0
Avg Revenue beat(2)-11.52%
Min Revenue beat(2)-16.54%
Max Revenue beat(2)-6.49%
Revenue beat(4)1
Avg Revenue beat(4)-2.94%
Min Revenue beat(4)-16.54%
Max Revenue beat(4)13.63%
Revenue beat(8)5
Avg Revenue beat(8)2.89%
Revenue beat(12)7
Avg Revenue beat(12)-0.95%
Revenue beat(16)7
Avg Revenue beat(16)-6.6%
PT rev (1m)0%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)3.7%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 16.09 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 5.42 | ||
| P/B | 2.25 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 11.82 |
EPS(TTM)1.22
EY4.35%
EPS(NY)1.74
Fwd EY6.21%
FCF(TTM)-3
FCFYN/A
OCF(TTM)5.17
OCFY18.45%
SpS31.17
BVpS12.48
TBVpS9.74
PEG (NY)N/A
PEG (5Y)3.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.1% | ||
| ROE | 9.56% | ||
| ROCE | 4.55% | ||
| ROIC | 3.89% | ||
| ROICexc | 3.96% | ||
| ROICexgc | 4.28% | ||
| OM | 15.03% | ||
| PM (TTM) | 3.83% | ||
| GM | 23.82% | ||
| FCFM | N/A |
ROA(3y)1.15%
ROA(5y)0.79%
ROE(3y)9.74%
ROE(5y)7.69%
ROIC(3y)3.3%
ROIC(5y)2.93%
ROICexc(3y)3.37%
ROICexc(5y)2.98%
ROICexgc(3y)3.6%
ROICexgc(5y)3.17%
ROCE(3y)3.86%
ROCE(5y)3.42%
ROICexcg growth 3Y33.62%
ROICexcg growth 5Y2.84%
ROICexc growth 3Y32.68%
ROICexc growth 5Y2.96%
OM growth 3Y6.78%
OM growth 5Y2.31%
PM growth 3Y-27.93%
PM growth 5Y-0.11%
GM growth 3Y-2.46%
GM growth 5Y0.39%
F-Score6
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.68 | ||
| Cap/Depr | 223.13% | ||
| Cap/Sales | 26.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 61.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 0.83 |
F-Score6
WACC7.39%
ROIC/WACC0.53
Cap/Depr(3y)264.91%
Cap/Depr(5y)254.88%
Cap/Sales(3y)30.68%
Cap/Sales(5y)32.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.06%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-74.24%
EPS Next Y-19.2%
EPS Next 2Y-0.22%
EPS Next 3Y2.21%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.95%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-39.84%
Revenue Next Year-26.19%
Revenue Next 2Y-11.03%
Revenue Next 3Y-4.51%
Revenue Next 5YN/A
EBIT growth 1Y-12.99%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year49.69%
EBIT Next 3Y18.89%
EBIT Next 5YN/A
FCF growth 1Y68.05%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y114.02%
OCF growth 3Y-2.11%
OCF growth 5Y7.83%