TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRN - US8965221091 - Common Stock
27.03 USD
-0.54 (-1.96%)
27.03 USD
0 (0%)
Taking everything into account, TRN scores 3 out of 10 in our fundamental rating. 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 has a valuation in line with the averages, but 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's Return On Assets of 1.07% is on the low side compared to the rest of the industry. TRN is outperformed by 63.64% of its industry peers.
- The Return On Equity of TRN (9.53%) is better than 60.61% of its industry peers.
- With a Return On Invested Capital value of 3.72%, TRN is not doing good in the industry: 64.39% 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 10.24%.
- The 3 year average ROIC (3.30%) for TRN is below the current ROIC(3.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.07% | ||
| ROE | 9.53% | ||
| ROIC | 3.72% |
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 4.39%, TRN is in line with its industry, outperforming 50.76% of the companies in the same industry.
- TRN's Profit Margin has been stable in the last couple of years.
- With a decent Operating Margin value of 16.82%, TRN is doing good in the industry, outperforming 78.79% of the companies in the same industry.
- In the last couple of years the Operating Margin of TRN has grown nicely.
- With a Gross Margin value of 26.30%, TRN is not doing good in the industry: 60.61% of the companies in the same industry are doing better.
- 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 | 16.82% | ||
| PM (TTM) | 4.39% | ||
| GM | 26.3% |
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.
- 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.
- The debt/assets ratio for TRN has been reduced compared to a year ago.
2.2 Solvency
- TRN has an Altman-Z score of 0.76. This is a bad value and indicates that TRN is not financially healthy and even has some risk of bankruptcy.
- TRN has a worse Altman-Z score (0.76) than 80.30% of its industry peers.
- TRN has a Debt/Equity ratio of 5.94. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 5.94, TRN is not doing good in the industry: 88.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.94 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.76 |
ROIC/WACC0.51
WACC7.29%
2.3 Liquidity
- A Current Ratio of 1.88 indicates that TRN should not have too much problems paying its short term obligations.
- TRN has a Current ratio (1.88) which is comparable to the rest of the industry.
- TRN has a Quick Ratio of 1.88. This is a bad value and indicates that TRN is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of TRN (0.80) is worse than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- TRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.04%.
- TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.62% yearly.
- The Revenue for TRN has decreased by -33.03% in the past year. This is quite bad
- The Revenue has been growing slightly by 0.49% on average over the past years.
EPS 1Y (TTM)-44.04%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%0%
Revenue 1Y (TTM)-33.03%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-43.15%
3.2 Future
- TRN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.90% yearly.
- TRN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -9.12% yearly.
EPS Next Y35.63%
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue Next Year-31.4%
Revenue Next 2Y-15.67%
Revenue Next 3Y-9.12%
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
- Based on the Price/Earnings ratio of 22.16, the valuation of TRN can be described as rather expensive.
- Based on the Price/Earnings ratio, TRN is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, TRN is valued at the same level.
- A Price/Forward Earnings ratio of 16.73 indicates a correct valuation of TRN.
- TRN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. TRN is cheaper than 78.03% of the companies in the same industry.
- TRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 16.73 |
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 70.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.08 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)3.35
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.50%, TRN is a good candidate for dividend investing.
- TRN's Dividend Yield is rather good when compared to the industry average which is at 1.01. TRN pays more dividend than 99.24% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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
- TRN pays out 102.41% of its income as dividend. This is not a sustainable payout ratio.
- TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP102.41%
EPS Next 2Y-3.9%
EPS Next 3Y4.9%
TRINITY INDUSTRIES INC / TRN FAQ
What is the ChartMill fundamental rating of TRINITY INDUSTRIES INC (TRN) stock?
ChartMill assigns a fundamental rating of 3 / 10 to TRN.
Can you provide the valuation status for TRINITY INDUSTRIES INC?
ChartMill assigns a valuation rating of 2 / 10 to TRINITY INDUSTRIES INC (TRN). This can be considered as Overvalued.
Can you provide the profitability details for TRINITY INDUSTRIES INC?
TRINITY INDUSTRIES INC (TRN) has a profitability rating of 4 / 10.
Can you provide the financial health for TRN stock?
The financial health rating of TRINITY INDUSTRIES INC (TRN) is 2 / 10.
How sustainable is the dividend of TRINITY INDUSTRIES INC (TRN) stock?
The dividend rating of TRINITY INDUSTRIES INC (TRN) is 6 / 10 and the dividend payout ratio is 102.41%.