TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
NYSE:TRN - New York Stock Exchange, Inc. - US8965221091 - Common Stock - Currency: USD
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
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
TRN's Return On Assets of 1.58% is on the low side compared to the rest of the industry. TRN is outperformed by 61.72% of its industry peers.
The Return On Equity of TRN (12.99%) is better than 64.84% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.34%, TRN is doing worse than 60.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TRN is significantly below the industry average of 10.31%.
The last Return On Invested Capital (4.34%) for TRN is above the 3 year average (3.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 12.99% | ||
| ROIC | 4.34% |
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
The Profit Margin of TRN (4.79%) 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's Operating Margin of 14.44% is fine compared to the rest of the industry. TRN outperforms 68.75% of its industry peers.
TRN's Operating Margin has improved in the last couple of years.
TRN has a Gross Margin of 22.62%. This is in the lower half of the industry: TRN underperforms 66.41% of its industry peers.
TRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.44% | ||
| PM (TTM) | 4.79% | ||
| GM | 22.62% |
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.
The number of shares outstanding for TRN remains at a similar level compared to 1 year ago.
The number of shares outstanding for TRN has been reduced compared to 5 years ago.
Compared to 1 year ago, TRN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that TRN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRN (0.88) is worse than 81.25% of its industry peers.
TRN has a debt to FCF ratio of 223.75. This is a negative value and a sign of low solvency as TRN would need 223.75 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 223.75, TRN is doing worse than 70.31% of the companies in the same industry.
TRN has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 5.33, TRN is doing worse than 89.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | 223.75 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.59
WACC7.38%
2.3 Liquidity
TRN has a Current Ratio of 1.70. 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 1.70, TRN is doing worse than 65.63% of the companies in the same industry.
TRN has a Quick Ratio of 1.70. 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 has a worse Quick ratio (0.87) than 69.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
TRN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.27%.
The Earnings Per Share has been growing slightly by 6.62% on average over the past years.
TRN shows a decrease in Revenue. In the last year, the revenue decreased by -9.40%.
The Revenue has been growing slightly by 0.49% on average over the past years.
EPS 1Y (TTM)4.27%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-12.12%
Revenue 1Y (TTM)-9.4%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-27.69%
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 4.90% on average per year.
The Revenue is expected to decrease by -1.95% on average over the next years.
EPS Next Y-17.76%
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue Next Year-21.79%
Revenue Next 2Y-8.83%
Revenue Next 3Y-1.95%
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
With a Price/Earnings ratio of 15.63, TRN is valued correctly.
75.78% of the companies in the same industry are more expensive than TRN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of TRN to the average of the S&P500 Index (26.68), we can say TRN is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.56, which indicates a correct valuation of TRN.
69.53% of the companies in the same industry are more expensive than TRN, based on the Price/Forward Earnings ratio.
TRN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.56 |
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 68.75% of the companies listed in the same industry.
67.19% of the companies in the same industry are cheaper than TRN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.9 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.36
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.45%, TRN is a good candidate for dividend investing.
In the last 3 months the price of TRN has falen by -21.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 1.83, 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 2.36, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
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 69.30% 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.
DP69.3%
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
NYSE:TRN (5/19/2025, 11:42:42 AM)
26.72
-0.15 (-0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners88.21%
Inst Owner Change-4.74%
Ins Owners0.97%
Ins Owner Change0%
Market Cap2.18B
Analysts46.67
Price Target28.05 (4.98%)
Short Float %3.28%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.45% |
Yearly Dividend1.14
Dividend Growth(5Y)11.9%
DP69.3%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.31%
Min EPS beat(2)-12.99%
Max EPS beat(2)4.36%
EPS beat(4)2
Avg EPS beat(4)20.71%
Min EPS beat(4)-12.99%
Max EPS beat(4)95.06%
EPS beat(8)4
Avg EPS beat(8)16.25%
EPS beat(12)5
Avg EPS beat(12)3.72%
EPS beat(16)7
Avg EPS beat(16)3.5%
Revenue beat(2)0
Avg Revenue beat(2)-4.43%
Min Revenue beat(2)-6.49%
Max Revenue beat(2)-2.37%
Revenue beat(4)2
Avg Revenue beat(4)3.26%
Min Revenue beat(4)-6.49%
Max Revenue beat(4)13.63%
Revenue beat(8)6
Avg Revenue beat(8)6.33%
Revenue beat(12)7
Avg Revenue beat(12)-1.97%
Revenue beat(16)7
Avg Revenue beat(16)-7.69%
PT rev (1m)-22.54%
PT rev (3m)-23.61%
EPS NQ rev (1m)-27.91%
EPS NQ rev (3m)-27.91%
EPS NY rev (1m)-12.31%
EPS NY rev (3m)-14.93%
Revenue NQ rev (1m)-4.92%
Revenue NQ rev (3m)-11.05%
Revenue NY rev (1m)-6.61%
Revenue NY rev (3m)-12.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.56 | ||
| P/S | 0.76 | ||
| P/FCF | 86.9 | ||
| P/OCF | 3.65 | ||
| P/B | 2.07 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)1.71
EY6.4%
EPS(NY)1.72
Fwd EY6.43%
FCF(TTM)0.31
FCFY1.15%
OCF(TTM)7.33
OCFY27.42%
SpS34.97
BVpS12.9
TBVpS10.19
PEG (NY)N/A
PEG (5Y)2.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 12.99% | ||
| ROCE | 5.07% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.39% | ||
| ROICexgc | 4.75% | ||
| OM | 14.44% | ||
| PM (TTM) | 4.79% | ||
| GM | 22.62% | ||
| FCFM | 0.88% |
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | 223.75 | ||
| Debt/EBITDA | 7.94 | ||
| Cap/Depr | 194.44% | ||
| Cap/Sales | 20.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.6% | ||
| Profit Quality | 18.35% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 0.88 |
F-Score6
WACC7.38%
ROIC/WACC0.59
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)4.27%
EPS 3Y43.68%
EPS 5Y6.62%
EPS Q2Q%-12.12%
EPS Next Y-17.76%
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-9.4%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-27.69%
Revenue Next Year-21.79%
Revenue Next 2Y-8.83%
Revenue Next 3Y-1.95%
Revenue Next 5YN/A
EBIT growth 1Y7.29%
EBIT growth 3Y35.23%
EBIT growth 5Y2.81%
EBIT Next Year58.1%
EBIT Next 3Y22.71%
EBIT Next 5YN/A
FCF growth 1Y102.48%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y804.84%
OCF growth 3Y-2.11%
OCF growth 5Y7.83%