Triton International Ltd (TRTN) Stock Fundamental Analysis
NYSE:TRTN - New York Stock Exchange, Inc. - BMG9078F1077 - Common Stock - Currency: USD
TRTN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. While TRTN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TRTN has a bad growth rate and is valued cheaply. These ratings could make TRTN a good candidate for value investing.
1. Profitability
1.1 Basic Checks
TRTN had positive earnings in the past year.
TRTN had a positive operating cash flow in the past year.
In the past 5 years TRTN has always been profitable.
TRTN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TRTN (5.08%) is comparable to the rest of the industry.
With a decent Return On Equity value of 18.18%, TRTN is doing good in the industry, outperforming 61.11% of the companies in the same industry.
With a Return On Invested Capital value of 6.77%, TRTN perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for TRTN is below the industry average of 9.53%.
The 3 year average ROIC (6.38%) for TRTN is below the current ROIC(6.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 18.18% | ||
| ROIC | 6.77% |
ROA(3y)4.18%
ROA(5y)3.89%
ROE(3y)16.24%
ROE(5y)15.6%
ROIC(3y)6.38%
ROIC(5y)6.37%
1.3 Margins
Looking at the Profit Margin, with a value of 34.24%, TRTN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of TRTN has grown nicely.
TRTN has a Operating Margin of 49.59%. This is amongst the best in the industry. TRTN outperforms 94.44% of its industry peers.
TRTN's Operating Margin has improved in the last couple of years.
TRTN has a Gross Margin of 89.66%. This is amongst the best in the industry. TRTN outperforms 98.15% of its industry peers.
TRTN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 49.59% | ||
| PM (TTM) | 34.24% | ||
| GM | 89.66% |
OM growth 3Y2.76%
OM growth 5Y3.52%
PM growth 3Y17.09%
PM growth 5Y5.79%
GM growth 3Y0.31%
GM growth 5Y-0.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TRTN is still creating some value.
Compared to 1 year ago, TRTN has less shares outstanding
The debt/assets ratio for TRTN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.05, we must say that TRTN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TRTN (1.05) is worse than 75.93% of its industry peers.
TRTN has a debt to FCF ratio of 6.67. This is a slightly negative value and a sign of low solvency as TRTN would need 6.67 years to pay back of all of its debts.
TRTN has a Debt to FCF ratio (6.67) which is in line with its industry peers.
A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt financing.
TRTN has a Debt to Equity ratio of 2.33. This is in the lower half of the industry: TRTN underperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 1.05 |
ROIC/WACC1
WACC6.77%
2.3 Liquidity
TRTN has a Current Ratio of 3.23. This indicates that TRTN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TRTN (3.23) is better than 87.04% of its industry peers.
TRTN has a Quick Ratio of 3.23. This indicates that TRTN is financially healthy and has no problem in meeting its short term obligations.
TRTN has a better Quick ratio (3.23) than 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
The earnings per share for TRTN have decreased by -3.15% in the last year.
The Earnings Per Share has been growing by 32.52% on average over the past years. This is a very strong growth
TRTN shows a decrease in Revenue. In the last year, the revenue decreased by -4.70%.
TRTN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.76% yearly.
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y32.52%
EPS Q2Q%-18.49%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y8.76%
Sales Q2Q%-12.08%
3.2 Future
TRTN is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -6.20% yearly.
The Revenue is expected to decrease by -3.13% on average over the next years.
EPS Next Y-14.94%
EPS Next 2Y-6.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-7.68%
Revenue Next 2Y-3.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 7.62 indicates a rather cheap valuation of TRTN.
Compared to the rest of the industry, the Price/Earnings ratio of TRTN indicates a rather cheap valuation: TRTN is cheaper than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.82, TRTN is valued rather cheaply.
The Price/Forward Earnings ratio is 7.99, which indicates a rather cheap valuation of TRTN.
Based on the Price/Forward Earnings ratio, TRTN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.21. TRTN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TRTN indicates a somewhat cheap valuation: TRTN is cheaper than 61.11% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TRTN indicates a rather cheap valuation: TRTN is cheaper than 90.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
The decent profitability rating of TRTN may justify a higher PE ratio.
TRTN's earnings are expected to decrease with -6.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-6.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TRTN has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 2.03. TRTN pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, TRTN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
On average, the dividend of TRTN grows each year by 14.82%, which is quite nice.
TRTN has been paying a dividend for over 5 years, so it has already some track record.
As TRTN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
TRTN pays out 35.09% of its income as dividend. This is a sustainable payout ratio.
DP35.09%
EPS Next 2Y-6.2%
EPS Next 3YN/A
79.55
-3.4 (-4.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners49.07%
Ins Owner Change0%
Market Cap4.38B
Analysts77.78
Price Target81.35 (2.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend3.49
Dividend Growth(5Y)14.82%
DP35.09%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.05%
Min EPS beat(2)-0.23%
Max EPS beat(2)2.32%
EPS beat(4)3
Avg EPS beat(4)1.05%
Min EPS beat(4)-0.23%
Max EPS beat(4)2.32%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.47%
Min Revenue beat(2)2.03%
Max Revenue beat(2)2.91%
Revenue beat(4)4
Avg Revenue beat(4)4.11%
Min Revenue beat(4)1.94%
Max Revenue beat(4)9.56%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-0.31%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.47%
EPS NY rev (1m)0.14%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 | ||
| P/S | 2.52 | ||
| P/FCF | 3.83 | ||
| P/OCF | 3.01 | ||
| P/B | 1.34 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)10.44
EY13.12%
EPS(NY)9.96
Fwd EY12.52%
FCF(TTM)20.75
FCFY26.08%
OCF(TTM)26.43
OCFY33.22%
SpS31.54
BVpS59.39
TBVpS55.02
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 18.18% | ||
| ROCE | 7.42% | ||
| ROIC | 6.77% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 7.05% | ||
| OM | 49.59% | ||
| PM (TTM) | 34.24% | ||
| GM | 89.66% | ||
| FCFM | 65.79% |
ROA(3y)4.18%
ROA(5y)3.89%
ROE(3y)16.24%
ROE(5y)15.6%
ROIC(3y)6.38%
ROIC(5y)6.37%
ROICexc(3y)6.42%
ROICexc(5y)6.41%
ROICexgc(3y)6.63%
ROICexgc(5y)6.63%
ROCE(3y)6.98%
ROCE(5y)6.97%
ROICexcg growth 3Y2.96%
ROICexcg growth 5Y6.52%
ROICexc growth 3Y3.08%
ROICexc growth 5Y6.88%
OM growth 3Y2.76%
OM growth 5Y3.52%
PM growth 3Y17.09%
PM growth 5Y5.79%
GM growth 3Y0.31%
GM growth 5Y-0.34%
F-Score7
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 6.67 | ||
| Debt/EBITDA | 5.19 | ||
| Cap/Depr | 51.36% | ||
| Cap/Sales | 18% | ||
| Interest Coverage | 3.79 | ||
| Cash Conversion | 99.01% | ||
| Profit Quality | 192.17% | ||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z | 1.05 |
F-Score7
WACC6.77%
ROIC/WACC1
Cap/Depr(3y)278.08%
Cap/Depr(5y)234.64%
Cap/Sales(3y)103.27%
Cap/Sales(5y)87.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y32.52%
EPS Q2Q%-18.49%
EPS Next Y-14.94%
EPS Next 2Y-6.2%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y8.76%
Sales Q2Q%-12.08%
Revenue Next Year-7.68%
Revenue Next 2Y-3.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-5.88%
EBIT growth 3Y11.49%
EBIT growth 5Y12.59%
EBIT Next Year38.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y203.71%
FCF growth 3Y4.65%
FCF growth 5YN/A
OCF growth 1Y27.58%
OCF growth 3Y21.08%
OCF growth 5Y16.79%