Triton International Ltd (TRTN)
BMG9078F1077 - Common Stock
TRTN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 51 industry peers in the Trading Companies & Distributors industry. While TRTN has a great profitability rating, there are some minor concerns on its financial health. TRTN is valued quite cheap, but it does not seem to be growing. TRTN also has an excellent dividend rating. These ratings could make TRTN a good candidate for value and dividend 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
Looking at the Return On Assets, with a value of 5.08%, TRTN is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Return On Equity of TRTN (18.18%) is better than 61.11% of its industry peers.
The Return On Invested Capital of TRTN (6.77%) is comparable to the rest of the industry.
TRTN had an Average Return On Invested Capital over the past 3 years of 6.38%. This is significantly below the industry average of 11.48%.
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
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.
The Operating Margin of TRTN (49.59%) is better than 94.44% of its industry peers.
TRTN's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 89.66%, TRTN belongs to the best 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), TRTN is creating some value.
TRTN has less shares outstanding than it did 1 year ago.
TRTN has less shares outstanding than it did 5 years ago.
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.
Looking at the Altman-Z score, with a value of 1.05, TRTN is doing worse than 75.93% of the companies in the same industry.
The Debt to FCF ratio of TRTN is 6.67, which is on the high side as it means it would take TRTN, 6.67 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.67, TRTN perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
A Debt/Equity ratio of 2.33 is on the high side and indicates that TRTN has dependencies on debt financing.
TRTN has a worse Debt to Equity ratio (2.33) 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.
Looking at the Current ratio, with a value of 3.23, TRTN belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
A Quick Ratio of 3.23 indicates that TRTN has no problem at all paying its short term obligations.
The Quick ratio of TRTN (3.23) is better than 94.44% of its industry peers.
| 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%.
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%.
Measured over the past years, TRTN shows a quite strong growth in Revenue. The Revenue has been growing by 8.76% on average per year.
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y32.52%
EPS growth Q2Q-18.49%
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y8.76%
Revenue growth Q2Q-12.08%
3.2 Future
The Earnings Per Share is expected to decrease by -6.20% on average over the next years.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.62, which indicates a rather cheap valuation of TRTN.
Based on the Price/Earnings ratio, TRTN is valued cheaper than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.15. TRTN is valued rather cheaply when compared to this.
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.
TRTN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.20, which is the current average of the S&P500 Index.
| 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.
Based on the Price/Free Cash Flow ratio, TRTN is valued cheaper than 90.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.83 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
TRTN has a very decent profitability rating, which 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
TRTN has a Yearly Dividend Yield of 3.52%.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 1.72. TRTN pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, TRTN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
5.2 History
The dividend of TRTN is nicely growing with an annual growth rate of 14.82%!
TRTN has been paying a dividend for over 5 years, so it has already some track record.
TRTN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)14.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
35.09% of the earnings are spent on dividend by TRTN. This is a low number and sustainable payout ratio.
DP35.09%
EPS Next 2Y-6.2%
EPS Next 3YN/A
Triton International Ltd
NYSE:TRTN (9/27/2023, 7:04:00 PM)
After market: 81.57 +2.02 (+2.54%)79.55
-3.4 (-4.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.62 | ||
| Fwd PE | 7.99 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 18.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 49.59% | ||
| PM (TTM) | 34.24% | ||
| GM | 89.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.23 | ||
| Quick Ratio | 3.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-3.15%
EPS 3Y35.7%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.7%
Revenue growth 3Y8.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y