TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - NYSE:TRN - US8965221091 - Common Stock
28.11 USD
-0.23 (-0.81%)
28.11 USD
0 (0%)
Taking everything into account, TRN scores 3 out of 10 in our fundamental rating. TRN was compared to 130 industry peers in the Machinery industry. There are concerns on the financial health of TRN while its profitability can be described as average. TRN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
TRN had positive earnings in the past year.
TRN had a positive operating cash flow in the past year.
Of the past 5 years TRN 4 years were profitable.
Of the past 5 years TRN 4 years had a positive operating cash flow.
1.2 Ratios
TRN has a worse Return On Assets (1.10%) than 63.08% of its industry peers.
Looking at the Return On Equity, with a value of 9.56%, TRN is in line with its industry, outperforming 55.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.89%, TRN is doing worse than 64.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRN is significantly below the industry average of 10.01%.
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
TRN has a Profit Margin (3.83%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of TRN has remained more or less at the same level.
TRN has a Operating Margin of 15.03%. This is in the better half of the industry: TRN outperforms 71.54% of its industry peers.
In the last couple of years the Operating Margin of TRN has grown nicely.
The Gross Margin of TRN (23.82%) is worse than 66.92% of its industry peers.
In the last couple of years the Gross Margin of TRN has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TRN is destroying value.
Compared to 1 year ago, TRN has about the same amount of shares outstanding.
Compared to 5 years ago, TRN has less shares outstanding
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.
With a Altman-Z score value of 0.83, TRN is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
TRN has a Debt/Equity ratio of 5.80. This is a high value indicating a heavy dependency on external financing.
TRN has a worse Debt to Equity ratio (5.80) than 91.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.34%
2.3 Liquidity
TRN has a Current Ratio of 1.96. This is a normal value and indicates that TRN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.96, TRN perfoms like the industry average, outperforming 47.69% of the companies in the same industry.
A Quick Ratio of 1.01 indicates that TRN should not have too much problems paying its short term obligations.
The Quick ratio of TRN (1.01) is worse than 63.08% of its industry peers.
| 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
Based on estimates for the next years, TRN will show a small growth in Earnings Per Share. The EPS will grow by 2.21% on average per year.
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-27.88%
Revenue Next 2Y-10.36%
Revenue Next 3Y-4.51%
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
TRN is valuated rather expensively with a Price/Earnings ratio of 23.04.
The rest of the industry has a similar Price/Earnings ratio as TRN.
The average S&P500 Price/Earnings ratio is at 27.77. TRN is around the same levels.
The Price/Forward Earnings ratio is 16.13, which indicates a correct valuation of TRN.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than the industry average as 68.46% of the companies are valued more expensively.
TRN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 16.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.48
EPS Next 2Y-0.22%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.28%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is rather good when compared to the industry average which is at 1.80. TRN pays more dividend than 96.92% of the companies in the same industry.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
On average, the dividend of TRN grows each year by 11.90%, which is quite nice.
TRN has been paying a dividend for at least 10 years, so it has 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
99.90% of the earnings are spent on dividend by TRN. 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%
28.11
-0.23 (-0.81%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.2%
Inst Owner Change0.07%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.27B
Analysts46.67
Price Target29.07 (3.42%)
Short Float %3.18%
Short Ratio3.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
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)-1.75%
Revenue NQ rev (3m)-8.93%
Revenue NY rev (1m)-2.29%
Revenue NY rev (3m)-7.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.04 | ||
| Fwd PE | 16.13 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 5.43 | ||
| P/B | 2.25 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 11.83 |
EPS(TTM)1.22
EY4.34%
EPS(NY)1.74
Fwd EY6.2%
FCF(TTM)-3
FCFYN/A
OCF(TTM)5.17
OCFY18.4%
SpS31.17
BVpS12.48
TBVpS9.74
PEG (NY)N/A
PEG (5Y)3.48
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
WACC7.34%
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-27.88%
Revenue Next 2Y-10.36%
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%