TRINITY INDUSTRIES INC (TRN)
US8965221091 - Common Stock
We assign a fundamental rating of 4 out of 10 to TRN. TRN was compared to 132 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 not valued too expensively and it also shows a decent growth rate.
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.
TRN had positive earnings in 4 of the past 5 years.
TRN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.38%, TRN is doing worse than 62.02% of the companies in the same industry.
TRN's Return On Equity of 11.94% is fine compared to the rest of the industry. TRN outperforms 63.57% of its industry peers.
The Return On Invested Capital of TRN (3.99%) is worse than 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 10.68%.
The last Return On Invested Capital (3.99%) for TRN is above the 3 year average (2.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 11.94% | ||
| ROIC | 3.99% |
ROA(3y)1.36%
ROA(5y)0.79%
ROE(3y)11.28%
ROE(5y)6.41%
ROIC(3y)2.45%
ROIC(5y)2.82%
1.3 Margins
TRN has a Profit Margin (3.98%) which is in line with its industry peers.
TRN's Profit Margin has declined in the last couple of years.
TRN's Operating Margin of 12.20% is fine compared to the rest of the industry. TRN outperforms 65.12% of its industry peers.
TRN's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 18.68%, TRN is not doing good in the industry: 72.87% of the companies in the same industry are doing better.
TRN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 3.98% | ||
| GM | 18.68% |
OM growth 3Y-6.02%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5Y-10.64%
GM growth 3Y-10.39%
GM growth 5Y-4.91%
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 more shares outstanding
TRN has less shares outstanding than it did 5 years ago.
TRN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that TRN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.89, TRN is doing worse than 76.74% of the companies in the same industry.
A Debt/Equity ratio of 5.59 is on the high side and indicates that TRN has dependencies on debt financing.
TRN's Debt to Equity ratio of 5.59 is on the low side compared to the rest of the industry. TRN is outperformed by 93.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.53
WACC7.51%
2.3 Liquidity
A Current Ratio of 1.60 indicates that TRN should not have too much problems paying its short term obligations.
TRN's Current ratio of 1.60 is on the low side compared to the rest of the industry. TRN is outperformed by 69.77% of its industry peers.
TRN has a Quick Ratio of 1.60. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
TRN's Quick ratio of 0.78 is on the low side compared to the rest of the industry. TRN is outperformed by 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 65.66% over the past year.
TRN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.71% yearly.
The Revenue has grown by 46.82% in the past year. This is a very strong growth!
TRN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.52% yearly.
EPS 1Y (TTM)65.66%
EPS 3Y59.51%
EPS 5Y-0.71%
EPS growth Q2Q371.43%
Revenue 1Y (TTM)46.82%
Revenue growth 3Y14.27%
Revenue growth 5Y3.52%
Revenue growth Q2Q26.16%
3.2 Future
TRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.61% yearly.
Based on estimates for the next years, TRN will show a decrease in Revenue. The Revenue will decrease by -0.99% on average per year.
EPS Next Y3.74%
EPS Next 2Y20.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.44%
Revenue Next 2Y-0.99%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 18.76, the valuation of TRN can be described as rather expensive.
TRN's Price/Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 68.22% of the companies in the same industry.
TRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 15.33, the valuation of TRN can be described as correct.
Based on the Price/Forward Earnings ratio, TRN is valued a bit cheaper than 71.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.30. TRN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 61.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TRN does not grow enough to justify the current Price/Earnings ratio.
TRN's earnings are expected to grow with 20.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.01
PEG (5Y)N/A
EPS Next 2Y20.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRN has a Yearly Dividend Yield of 3.65%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.71, TRN pays a better dividend. On top of this TRN pays more dividend than 95.35% of the companies listed in the same industry.
TRN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
5.2 History
On average, the dividend of TRN grows each year by 14.14%, which is quite nice.
TRN has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of TRN decreased recently.
Dividend Growth(5Y)14.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
TRN pays out 70.15% of its income as dividend. This is not a sustainable payout ratio.
The dividend of TRN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP70.15%
EPS Next 2Y20.61%
EPS Next 3YN/A
TRINITY INDUSTRIES INC
NYSE:TRN (5/9/2024, 12:49:55 PM)
30.77
+0.1 (+0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.65% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.76 | ||
| Fwd PE | 15.33 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 11.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.2% | ||
| PM (TTM) | 3.98% | ||
| GM | 18.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.6 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)65.66%
EPS 3Y59.51%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)46.82%
Revenue growth 3Y14.27%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y