NYSE:TRN

Stock Analysis Report

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Executive Summary

Trinity Industries, Inc. provides rail transportation products and services in North America.


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

How has Trinity Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

TRN

6.2%

US Machinery

3.0%

US Market


1 Year Return

1.7%

TRN

-0.6%

US Machinery

9.9%

US Market

Return vs Industry: TRN exceeded the US Machinery industry which returned -0.6% over the past year.

Return vs Market: TRN underperformed the US Market which returned 9.9% over the past year.


Shareholder returns

TRNIndustryMarket
7 Day0.5%6.2%3.0%
30 Day6.7%9.1%8.2%
90 Day-3.9%-6.1%0.4%
1 Year5.8%1.7%1.4%-0.6%12.4%9.9%
3 Year15.2%-23.1%9.3%2.2%31.0%22.3%
5 Year3.4%-33.5%40.9%24.0%58.1%40.3%

Price Volatility Vs. Market

How volatile is Trinity Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trinity Industries undervalued compared to its fair value and its price relative to the market?

9.14x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRN ($19.97) is trading above our estimate of fair value ($10.05)

Significantly Below Fair Value: TRN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRN is good value based on its PE Ratio (9.1x) compared to the Machinery industry average (20x).

PE vs Market: TRN is good value based on its PE Ratio (9.1x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: TRN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TRN is good value based on its PB Ratio (1.1x) compared to the US Machinery industry average (2x).


Next Steps

Future Growth

How is Trinity Industries forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-60.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN's earnings are forecast to decline over the next 3 years (-60.6% per year).

Earnings vs Market: TRN's earnings are forecast to decline over the next 3 years (-60.6% per year).

High Growth Earnings: TRN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TRN's revenue is expected to decline over the next 3 years (-9.5% per year).

High Growth Revenue: TRN's revenue is forecast to decline over the next 3 years (-9.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Trinity Industries performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRN has a large one-off gain of $33.8M impacting its March 31 2020 financial results.

Growing Profit Margin: TRN's current net profit margins (8.9%) are higher than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: TRN's earnings have declined by -26.9% per year over the past 5 years.

Accelerating Growth: TRN's earnings growth over the past year (122.1%) exceeds its 5-year average (-26.9% per year).

Earnings vs Industry: TRN earnings growth over the past year (122.1%) exceeded the Machinery industry -5.7%.


Return on Equity

High ROE: TRN's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Trinity Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TRN's short term assets ($1.4B) exceed its short term liabilities ($567.8M).

Long Term Liabilities: TRN's short term assets ($1.4B) do not cover its long term liabilities ($6.0B).


Debt to Equity History and Analysis

Debt Level: TRN's debt to equity ratio (199.6%) is considered high.

Reducing Debt: TRN's debt to equity ratio has increased from 98.1% to 199.6% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (14.1%).

Interest Coverage: TRN's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Trinity Industries's current dividend yield, its reliability and sustainability?

3.81%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TRN's dividend (3.81%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: TRN's dividend (3.81%) is low compared to the top 25% of dividend payers in the US market (4.54%).


Stability and Growth of Payments

Stable Dividend: TRN's dividends per share have been stable in the past 10 years.

Growing Dividend: TRN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), TRN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

E. Savage (54yo)

0.33

Tenure

US$266,838

Compensation

Ms. E. Jean Savage serves as President, Chief Executive Officer and Director at Trinity Industries, Inc. since February 17, 2020. She served as an Independent Director of Trinity Industries, Inc. since Nov ...


Leadership Team

NamePositionTenureCompensationOwnership
E. Savage
President0.33yrUS$266.84k0.0096% $226.1k
Eric Marchetto
Senior VP & CFO0.17yrUS$2.11m0.17% $4.0m
Melendy Lovett
Senior VP & Chief Administrative Officer0.17yrUS$1.83m0.13% $3.1m
Sarah Teachout
Senior VP & Chief Legal Officer1.58yrsUS$1.94m0.042% $995.4k
Paul Mauer
Executive VP of TrinityRail & President of TrinityRail Products2.42yrsUS$2.09m0.20% $4.8m
Steven McDowell
VP & Chief Accounting Officer1.58yrsno data0.041% $956.3k
W. Howard
VP & Chief Information Officer0.17yrno datano data
Jessica Greiner
Vice President of Investor Relations & Communications1.58yrsno datano data
David DelVecchio
VP & Chief Human Resources Officer1.58yrsno datano data
Brian Madison
President of TrinityRail Leasing & Management Servicesno datano data0.037% $882.4k

1.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TRN's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
E. Savage
President0.33yrUS$266.84k0.0096% $226.1k
Dunia Shive
Independent Director6.25yrsUS$281.02kno data
John Adams
Independent Director13.42yrsUS$310.61k0.077% $1.8m
Charles Matthews
Independent Director10.25yrsUS$261.02kno data
Leldon Echols
Independent Non-Executive Chairman1.25yrsUS$478.60k0.030% $697.7k
Brandon Boze
Independent Director1.58yrsUS$116.00k0.0025% $57.9k
John Diez
Independent Director1.58yrsUS$250.02kno data

1.6yrs

Average Tenure

58yo

Average Age

Experienced Board: TRN's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TRN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Trinity Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trinity Industries, Inc.
  • Ticker: TRN
  • Exchange: NYSE
  • Founded: 1933
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: US$2.353b
  • Shares outstanding: 117.83m
  • Website: https://www.trin.net

Number of Employees


Location

  • Trinity Industries, Inc.
  • 2525 North Stemmons Freeway
  • Dallas
  • Texas
  • 75207-2401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRNNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1972
TTADB (Deutsche Boerse AG)YesCommon StockDEEURApr 1972
TRN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1972

Biography

Trinity Industries, Inc. provides rail transportation products and services in North America. It operates through three segments: Railcar Leasing and Management Services Group, Rail Products Group, and All Other. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investor-owned fund; and provides fleet maintenance and management services to industrial shippers. As of December 31, 2019, it had a fleet of 103,705 owned or leased railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The All Other segment manufactures guardrail, crash cushions, and other highway barriers; and engages in the logistics and other peripheral businesses. The company sells or leases products and services through its own sales personnel and independent sales representatives. Trinity Industries, Inc. was incorporated in 1933 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 03:21
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.