TRINITY INDUSTRIES INC (TRN) Stock Fundamental Analysis
NYSE:TRN - New York Stock Exchange, Inc. - US8965221091 - Common Stock - Currency: USD
Overall TRN gets a fundamental rating of 3 out of 10. We evaluated TRN against 127 industry peers in the Machinery industry. There are concerns on the financial health of TRN while its profitability can be described as average. TRN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TRN was profitable.
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 has a worse Return On Assets (1.10%) than 64.57% of its industry peers.
With a Return On Equity value of 9.56%, TRN perfoms like the industry average, outperforming 55.12% of the companies in the same industry.
The Return On Invested Capital of TRN (3.89%) is worse than 62.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRN is significantly below the industry average of 10.56%.
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 43.31% of its industry peers.
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 70.87% 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 66.93% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for TRN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that TRN is in the distress zone and has some risk of bankruptcy.
TRN's Altman-Z score of 0.83 is on the low side compared to the rest of the industry. TRN is outperformed by 77.95% of its industry peers.
A Debt/Equity ratio of 5.80 is on the high side and indicates that TRN has dependencies on debt financing.
The Debt to Equity ratio of TRN (5.80) is worse than 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.8 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC7.4%
2.3 Liquidity
A Current Ratio of 1.96 indicates that TRN should not have too much problems paying its short term obligations.
The Current ratio of TRN (1.96) is comparable to the rest of the industry.
TRN has a Quick Ratio of 1.01. 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 Quick ratio, with a value of 1.01, TRN is doing worse than 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
TRN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.06%.
TRN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.62% yearly.
Looking at the last year, TRN shows a very negative growth in Revenue. The Revenue has decreased by -22.95% in the last year.
Measured over the past years, TRN shows a small growth in Revenue. The Revenue has been growing by 0.49% on average per year.
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 4.90% on average per year.
The Revenue is expected to decrease by -2.11% 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-21.95%
Revenue Next 2Y-8.95%
Revenue Next 3Y-2.11%
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 22.66.
TRN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of TRN to the average of the S&P500 Index (26.41), we can say TRN is valued inline with the index average.
A Price/Forward Earnings ratio of 16.10 indicates a correct valuation of TRN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TRN indicates a somewhat cheap valuation: TRN is cheaper than 67.72% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.87, TRN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 16.1 |
4.2 Price Multiples
TRN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TRN is cheaper than 66.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.42
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.39%, TRN is a good candidate for dividend investing.
TRN's Dividend Yield is rather good when compared to the industry average which is at 1.91. TRN pays more dividend than 96.85% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TRN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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
99.90% of the earnings are spent on dividend by TRN. This is not a sustainable payout ratio.
TRN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP99.9%
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
27.65
+0.47 (+1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change0.12%
Ins Owners1.23%
Ins Owner Change0%
Market Cap2.26B
Analysts46.67
Price Target26.52 (-4.09%)
Short Float %2.74%
Short Ratio3.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.39% |
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)-5.45%
PT rev (3m)-5.45%
EPS NQ rev (1m)-2.53%
EPS NQ rev (3m)-6.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.31%
Revenue NQ rev (1m)-7.3%
Revenue NQ rev (3m)-17.65%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 16.1 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 5.4 | ||
| P/B | 2.24 | ||
| P/tB | 2.87 | ||
| EV/EBITDA | 11.81 |
EPS(TTM)1.22
EY4.41%
EPS(NY)1.72
Fwd EY6.21%
FCF(TTM)-2.97
FCFYN/A
OCF(TTM)5.12
OCFY18.53%
SpS30.88
BVpS12.36
TBVpS9.65
PEG (NY)N/A
PEG (5Y)3.42
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
WACC7.4%
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-17.76%
EPS Next 2Y-0.95%
EPS Next 3Y4.9%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.95%
Revenue growth 3Y26.64%
Revenue growth 5Y0.49%
Sales Q2Q%-39.84%
Revenue Next Year-21.95%
Revenue Next 2Y-8.95%
Revenue Next 3Y-2.11%
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%