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TRN

Trinity IndustriesNYSE:TRN Stock Report

Market Cap

US$2.6b

7D

-8.4%

1Y

17.1%

Updated

30 Nov, 2021

Data

Company Financials +
TRN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health1/6
Dividends3/6

TRN Stock Overview

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

Trinity Industries Competitors

Greenbrier Companies

NYSE:GBX

US$1.3b

FreightCar America

NasdaqGS:RAIL

US$59.6m

General Electric

NYSE:GE

US$104.3b

Vestas Wind Systems

CPSE:VWS

kr.221.0b

Price History & Performance

Summary of all time highs, changes and price drops for Trinity Industries
Historical stock prices
Current Share PriceUS$26.50
52 Week HighUS$33.77
52 Week LowUS$22.24
Beta1.3
1 Month Change-5.53%
3 Month Change-7.38%
1 Year Change17.10%
3 Year Change18.20%
5 Year Change-7.41%
Change since IPO281.60%

Recent News & Updates

Nov 11
Is It Time To Consider Buying Trinity Industries, Inc. (NYSE:TRN)?

Is It Time To Consider Buying Trinity Industries, Inc. (NYSE:TRN)?

While Trinity Industries, Inc. ( NYSE:TRN ) might not be the most widely known stock at the moment, it received a lot...

Oct 21
These 4 Measures Indicate That Trinity Industries (NYSE:TRN) Is Using Debt In A Risky Way

These 4 Measures Indicate That Trinity Industries (NYSE:TRN) Is Using Debt In A Risky Way

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

TRNUS MachineryUS Market
7D-8.4%-5.6%-2.8%
1Y17.1%15.1%20.0%

Return vs Industry: TRN exceeded the US Machinery industry which returned 16.5% over the past year.

Return vs Market: TRN matched the US Market which returned 21.3% over the past year.

Price Volatility

Is TRN's price volatile compared to industry and market?
TRN volatility
TRN Average Weekly Movement4.3%
Machinery Industry Average Movement4.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: TRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TRN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19336,375E. Savagehttps://www.trin.net

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.

Trinity Industries Fundamentals Summary

How do Trinity Industries's earnings and revenue compare to its market cap?
TRN fundamental statistics
Market CapUS$2.58b
Earnings (TTM)-US$78.50m
Revenue (TTM)US$1.69b

1.5x

P/S Ratio

-32.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRN income statement (TTM)
RevenueUS$1.69b
Cost of RevenueUS$1.25b
Gross ProfitUS$440.20m
ExpensesUS$518.70m
Earnings-US$78.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.81
Gross Margin26.06%
Net Profit Margin-4.65%
Debt/Equity Ratio326.1%

How did TRN perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

-113%

Payout Ratio

Valuation

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

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRN ($27.85) is trading below our estimate of fair value ($44.14)

Significantly Below Fair Value: TRN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRN is unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.

PE vs Market: TRN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRN is good value based on its PB Ratio (2x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Trinity Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

74.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: TRN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: TRN's is expected to become profitable in the next 3 years.

Revenue vs Market: TRN's revenue (26.2% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: TRN's revenue (26.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRN's Return on Equity is forecast to be low in 3 years time (19%).


Past Performance

How has Trinity Industries performed over the past 5 years?

-47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRN is currently unprofitable.

Growing Profit Margin: TRN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRN is unprofitable, and losses have increased over the past 5 years at a rate of 47.7% per year.

Accelerating Growth: Unable to compare TRN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRN is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (32%).


Return on Equity

High ROE: TRN has a negative Return on Equity (-5.26%), as it is currently unprofitable.


Financial Health

How is Trinity Industries's financial position?


Financial Position Analysis

Short Term Liabilities: TRN's short term assets ($1.2B) exceed its short term liabilities ($509.0M).

Long Term Liabilities: TRN's short term assets ($1.2B) do not cover its long term liabilities ($6.4B).


Debt to Equity History and Analysis

Debt Level: TRN's net debt to equity ratio (312.3%) is considered high.

Reducing Debt: TRN's debt to equity ratio has increased from 73% to 326.1% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (12%).

Interest Coverage: TRN's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRN's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: TRN's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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: TRN is paying a dividend but the company is unprofitable.


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?

1.8yrs

Average management tenure


CEO

E. Savage (56 yo)

1.67yrs

Tenure

US$6,868,082

Compensation

Ms. E. Jean Savage serves as President and Chief Executive Officer at Trinity Industries, Inc. since February 17, 2020 and serves as its Director since November 01, 2018. She was the Vice President of the...


CEO Compensation Analysis

Compensation vs Market: E.'s total compensation ($USD6.87M) is above average for companies of similar size in the US market ($USD5.22M).

Compensation vs Earnings: E.'s compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: TRN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TRN's board of directors are not considered experienced ( 1.9 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: Insufficient data to determine if 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 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$2.580b
  • Shares outstanding: 97.37m
  • Website: https://www.trin.net

Number of Employees


Location

  • Trinity Industries, Inc.
  • 14221 North Dallas Parkway
  • Suite 1100
  • Dallas
  • Texas
  • 75254-2957
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:56
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.