TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
NYSE:TRN - US8965221091 - Common Stock
28.19 USD
-0.38 (-1.33%)
TRN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. While TRN is still in line with the averages on profitability rating, there are concerns on its financial health. TRN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
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's Return On Assets of 1.10% is on the low side compared to the rest of the industry. TRN is outperformed by 64.84% of its industry peers.
With a Return On Equity value of 9.56%, TRN perfoms like the industry average, outperforming 54.69% of the companies in the same industry.
With a Return On Invested Capital value of 3.89%, TRN is not doing good in the industry: 64.84% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.00%.
The 3 year average ROIC (3.30%) for TRN is below the current ROIC(3.89%), indicating increased profibility in the last year.
| 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's Profit Margin of 3.83% is in line compared to the rest of the industry. TRN outperforms 43.75% of its industry peers.
TRN's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 15.03%, TRN is doing good in the industry, outperforming 71.09% of the companies in the same industry.
TRN's Operating Margin has improved in the last couple of years.
TRN has a worse Gross Margin (23.82%) than 66.41% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TRN is destroying value.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
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: 78.91% of the companies in the same industry are doing better.
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: 90.63% 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
WACC7.37%
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.
Looking at the Current ratio, with a value of 1.96, TRN is in line with its industry, outperforming 49.22% 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 62.50% 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
TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.21% yearly.
The Revenue is expected to decrease by -4.51% on average over the next years.
EPS Next Y-22.09%
EPS Next 2Y-4.66%
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
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.
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
Based on the Price/Earnings ratio of 23.11, the valuation of TRN can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of TRN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.02, TRN is valued at the same level.
Based on the Price/Forward Earnings ratio of 17.72, the valuation of TRN can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 64.06% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. TRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRN is valued a bit cheaper than 67.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.49
EPS Next 2Y-4.66%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 4.20%, which is a nice return.
Compared to an average industry Dividend Yield of 1.78, TRN pays a better dividend. On top of this TRN pays more dividend than 97.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
5.2 History
The dividend of TRN is nicely growing with an annual growth rate of 11.90%!
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-4.66%
EPS Next 3Y2.21%
NYSE:TRN (9/8/2025, 12:19:54 PM)
28.19
-0.38 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-0.06%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.28B
Analysts46.67
Price Target29.07 (3.12%)
Short Float %3.48%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.2% |
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)9.62%
PT rev (3m)3.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)-5.26%
EPS NY rev (3m)-5.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-17.65%
Revenue NY rev (1m)-5.43%
Revenue NY rev (3m)-5.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 17.72 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 5.45 | ||
| P/B | 2.26 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 11.88 |
EPS(TTM)1.22
EY4.33%
EPS(NY)1.59
Fwd EY5.64%
FCF(TTM)-3
FCFYN/A
OCF(TTM)5.17
OCFY18.35%
SpS31.17
BVpS12.48
TBVpS9.74
PEG (NY)N/A
PEG (5Y)3.49
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
WACC7.37%
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-22.09%
EPS Next 2Y-4.66%
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 Year48.78%
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%