Triton International Ltd (TRTN) Stock Fundamental Analysis
USA - NYSE:TRTN - BMG9078F1077 - Common Stock
79.55 USD
-3.4 (-4.1%)
81.57 USD
+2.02 (+2.54%)
Overall TRTN gets a fundamental rating of 6 out of 10. We evaluated TRTN against 51 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.
Each year in the past 5 years TRTN has been profitable.
In the past 5 years TRTN always reported a positive cash flow from operatings.
1.2 Ratios
TRTN has a Return On Assets (5.08%) which is in line with its industry peers.
TRTN has a better Return On Equity (18.18%) than 61.11% of its industry peers.
TRTN's Return On Invested Capital of 6.77% is in line compared to the rest of the industry. TRTN outperforms 46.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TRTN is below the industry average of 10.19%.
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
TRTN has a better Profit Margin (34.24%) than 100.00% of its industry peers.
TRTN's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 49.59%, TRTN belongs to the best 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.
TRTN has a better Gross Margin (89.66%) than 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
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.
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.
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.
The Debt to FCF ratio of TRTN (6.67) is comparable to the rest of the industry.
TRTN has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.33, TRTN is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.33 | ||
| Debt/FCF | 6.67 | ||
| Altman-Z | 1.05 |
ROIC/WACC1
WACC6.77%
2.3 Liquidity
A Current Ratio of 3.23 indicates that TRTN has no problem at all paying its short term obligations.
TRTN's Current ratio of 3.23 is amongst the best of the industry. TRTN outperforms 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.
Looking at the Quick ratio, with a value of 3.23, TRTN belongs to the top 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%.
Measured over the past years, TRTN shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.52% on average per year.
The Revenue has decreased by -4.70% in the past year.
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 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
TRTN is valuated cheaply with a Price/Earnings ratio of 7.62.
Based on the Price/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/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.99, the valuation of TRTN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio of 32.73, 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 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.
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 2.20. 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 2.37.
| 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
Revenue(TTM)1.74B
Net Income(TTM)594.51M
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
Graham NumberN/A
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%
ROICexgc growth 3Y2.96%
ROICexgc 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%
Triton International Ltd / TRTN FAQ
What is the fundamental rating for TRTN stock?
ChartMill assigns a fundamental rating of 6 / 10 to TRTN.
What is the valuation status of Triton International Ltd (TRTN) stock?
ChartMill assigns a valuation rating of 8 / 10 to Triton International Ltd (TRTN). This can be considered as Undervalued.
What is the profitability of TRTN stock?
Triton International Ltd (TRTN) has a profitability rating of 7 / 10.
What is the financial health of Triton International Ltd (TRTN) stock?
The financial health rating of Triton International Ltd (TRTN) is 5 / 10.
What is the expected EPS growth for Triton International Ltd (TRTN) stock?
The Earnings per Share (EPS) of Triton International Ltd (TRTN) is expected to decline by -14.94% in the next year.