Triton International Ltd (TRTN) Stock Fundamental Analysis
NYSE:TRTN - New York Stock Exchange, Inc. - BMG9078F1077 - Common Stock - Currency: USD
Overall TRTN gets a fundamental rating of 6 out of 10. We evaluated TRTN against 50 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 is cheap, but on the other hand it scores bad on growth. These ratings would make TRTN suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year TRTN was profitable.
In the past year TRTN had a positive cash flow from operations.
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
TRTN has a Return On Assets (5.08%) which is comparable to the rest of the industry.
TRTN's Return On Equity of 18.18% is fine compared to the rest of the industry. TRTN outperforms 61.11% of its industry peers.
The Return On Invested Capital of TRTN (6.77%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for TRTN is below the industry average of 9.15%.
The last Return On Invested Capital (6.77%) for TRTN is above the 3 year average (6.38%), which is a sign of increasing profitability.
| 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
TRTN's Profit Margin of 34.24% is amongst the best of the industry. TRTN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of TRTN has grown nicely.
Looking at the Operating Margin, with a value of 49.59%, TRTN belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Operating Margin of TRTN has grown nicely.
Looking at the Gross Margin, with a value of 89.66%, TRTN belongs to the top of the industry, outperforming 98.15% of the companies in the same industry.
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.
TRTN has less shares outstanding than it did 1 year ago.
TRTN has a better debt/assets ratio than last year.
2.2 Solvency
TRTN has an Altman-Z score of 1.05. This is a bad value and indicates that TRTN is not financially healthy and even has some risk of bankruptcy.
TRTN has a Altman-Z score of 1.05. This is in the lower half of the industry: TRTN underperforms 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 of 6.67. This is comparable to the rest of the industry: TRTN outperforms 59.26% of its industry peers.
A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt financing.
The Debt to Equity ratio of TRTN (2.33) is worse than 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.
With an excellent Quick ratio value of 3.23, TRTN belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 |
3. Growth
3.1 Past
TRTN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.15%.
TRTN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.52% yearly.
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
The Earnings Per Share is expected to decrease by -6.20% on average over the next years.
TRTN is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.13% yearly.
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
With a Price/Earnings ratio of 7.62, the valuation of TRTN can be described as very cheap.
Based on the Price/Earnings ratio, TRTN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.29. TRTN is valued rather cheaply when compared to this.
TRTN is valuated cheaply with a Price/Forward Earnings ratio of 7.99.
Based on the Price/Forward Earnings ratio, TRTN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, TRTN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TRTN is valued a bit cheaper than 61.11% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, TRTN is valued cheaply inside the industry as 90.74% of the companies are valued more expensively.
| 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.
A cheap valuation may be justified as TRTN's earnings are expected to decrease with -6.20% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-6.2%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.52%, TRTN has a reasonable but not impressive dividend return.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 2.94. TRTN pays more dividend than 100.00% of the companies in the same industry.
TRTN's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| 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%