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TRN

Trinity Industries NYSE:TRN Stock Report

Last Price

US$23.95

Market Cap

US$2.0b

7D

-2.6%

1Y

-14.9%

Updated

22 May, 2022

Data

Company Financials +
TRN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance1/6
Financial Health1/6
Dividends3/6

TRN Stock Overview

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America.

Trinity Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Trinity Industries
Historical stock prices
Current Share PriceUS$23.95
52 Week HighUS$35.35
52 Week LowUS$23.39
Beta1.35
1 Month Change-22.82%
3 Month Change-18.68%
1 Year Change-14.89%
3 Year Change16.89%
5 Year Change-7.57%
Change since IPO244.88%

Recent News & Updates

May 09

Continue To Avoid Trinity Industries Inc.

The bases of comparison we once used are no longer valid in my view. What was cheap in the summer of 2021 can be expensive today, when compared to alternatives. The yield on the 10-year has climbed, which inverts the TINA trade, and massively reduces the present value of future cash flows from stocks. Before I buy, yields will need to fall, valuation will need to fall, or dividends will need to skyrocket. Some of these are likely, some not. Oh, and the recent financial performance was disappointing again.

Shareholder Returns

TRNUS MachineryUS Market
7D-2.6%-4.1%-2.7%
1Y-14.9%-19.3%-12.9%

Return vs Industry: TRN exceeded the US Machinery industry which returned -19.3% over the past year.

Return vs Market: TRN underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is TRN's price volatile compared to industry and market?
TRN volatility
TRN Average Weekly Movement4.8%
Machinery Industry Average Movement5.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: TRN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: TRN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19335,845E. Savagehttps://www.trin.net

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services.

Trinity Industries Fundamentals Summary

How do Trinity Industries's earnings and revenue compare to its market cap?
TRN fundamental statistics
Market CapUS$2.00b
Earnings (TTM)US$49.80m
Revenue (TTM)US$1.66b

40.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRN income statement (TTM)
RevenueUS$1.66b
Cost of RevenueUS$1.31b
Gross ProfitUS$344.30m
Other ExpensesUS$294.50m
EarningsUS$49.80m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.60
Gross Margin20.77%
Net Profit Margin3.00%
Debt/Equity Ratio403.5%

How did TRN perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

167%

Payout Ratio

Does TRN pay a reliable dividends?

See TRN dividend history and benchmarks
When do you need to buy TRN by to receive an upcoming dividend?
Trinity Industries dividend dates
Ex Dividend DateJul 14 2022
Dividend Pay DateJul 29 2022
Days until Ex dividend51 days
Days until Dividend pay date66 days

Does TRN pay a reliable dividends?

See TRN dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TRN ($23.95) is trading below our estimate of fair value ($110.71)

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


Price To Earnings Ratio

PE vs Industry: TRN is poor value based on its PE Ratio (40.1x) compared to the US Machinery industry average (21.3x).

PE vs Market: TRN is poor value based on its PE Ratio (40.1x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: TRN is good value based on its PB Ratio (1.9x) compared to the US Machinery industry average (2.1x).


Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


72.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRN's forecast earnings growth (72.5% per year) is above the savings rate (1.9%).

Earnings vs Market: TRN's earnings (72.5% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRN's revenue (26.9% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: TRN's revenue (26.9% per year) is forecast to grow faster than 20% 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


Past Performance

How has Trinity Industries performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-52.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRN has a large one-off gain of $84.3M impacting its March 31 2022 financial results.

Growing Profit Margin: TRN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TRN's earnings have declined by 52.8% per year over the past 5 years.

Accelerating Growth: TRN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TRN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (24%).


Return on Equity

High ROE: TRN's Return on Equity (4.2%) is considered low.


Financial Health

How is Trinity Industries's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TRN's short term assets ($1.1B) exceed its short term liabilities ($523.7M).

Long Term Liabilities: TRN's short term assets ($1.1B) do not cover its long term liabilities ($6.5B).


Debt to Equity History and Analysis

Debt Level: TRN's net debt to equity ratio (392.7%) is considered high.

Reducing Debt: TRN's debt to equity ratio has increased from 69.9% to 403.5% over the past 5 years.

Debt Coverage: TRN's debt is not well covered by operating cash flow (10.8%).

Interest Coverage: TRN's interest payments on its debt are not well covered by EBIT (0.9x coverage).


Balance Sheet


Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.84%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 23 2022Ex Dividend DateJul 14 2022Dividend Pay DateJul 29 202215 days from Ex DividendBuy in the next 51 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: TRN's dividend (3.84%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: TRN's dividend (3.84%) is low compared to the top 25% of dividend payers in the US market (4.11%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (167.3%), TRN's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (379.6%), TRN's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

2.3yrs

Average management tenure


CEO

E. Savage (57 yo)

2.25yrs

Tenure

US$5,579,197

Compensation

Ms. E. Jean Savage serves as Director at WestRock Company since January 28, 2022. She serves as President and Chief Executive Officer at Trinity Industries, Inc. since February 17, 2020 and serves as its D...


CEO Compensation Analysis

Compensation vs Market: E.'s total compensation ($USD5.58M) is about average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: TRN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: TRN's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TRN insiders have only sold shares 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
  • Implied Market Cap: US$1.996b
  • Shares outstanding: 83.34m
  • 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 Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.