Triton International Ltd (TRTN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TRTN - BMG9078F1077 - Common Stock
79.55 USD
-3.4 (-4.1%)
81.57 USD
+2.02 (+2.54%)
We assign a fundamental rating of 5 out of 10 to TRTN. TRTN was compared to 50 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of TRTN get a neutral evaluation. Nothing too spectacular is happening here. TRTN is valued quite cheap, but it does not seem to be growing. Finally TRTN also has an excellent dividend rating. These ratings would make TRTN suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
In the past year TRTN was profitable.
TRTN had a positive operating cash flow in the past year.
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.
Looking at the Return On Equity, with a value of 18.18%, TRTN is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
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 9.63%.
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
With an excellent Profit Margin value of 34.24%, TRTN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
TRTN's Profit Margin has improved in the last couple of years.
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's Gross Margin of 89.66% is amongst the best of 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
TRTN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 worse Altman-Z score (1.05) than 75.93% of its industry peers.
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.
TRTN has a Debt to FCF ratio (6.67) which is in line with its industry peers.
TRTN has a Debt/Equity ratio of 2.33. This is a high value indicating a heavy dependency on external 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.
TRTN has a Quick ratio of 3.23. This is amongst the best in the industry. TRTN outperforms 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
Based on estimates for the next years, TRTN will show a decrease in Earnings Per Share. The EPS will decrease by -6.20% on average per year.
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
Based on the 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.
TRTN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
TRTN is valuated cheaply with a Price/Forward Earnings ratio of 7.99.
TRTN's Price/Forward Earnings ratio is rather cheap when compared to the industry. TRTN is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TRTN to the average of the S&P500 Index (23.98), we can say 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.
90.74% of the companies in the same industry are more expensive than TRTN, based on the Price/Free Cash Flow ratio.
| 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%.
TRTN's Dividend Yield is rather good when compared to the industry average which is at 1.35. TRTN pays more dividend than 100.00% of the companies in the same industry.
TRTN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| 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.
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
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.
Can you provide the valuation status for Triton International Ltd?
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.
Can you provide the dividend sustainability for TRTN stock?
The dividend rating of Triton International Ltd (TRTN) is 6 / 10 and the dividend payout ratio is 35.09%.