| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 5/6 |
| Past Performance | 1/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$23.95 |
| 52 Week High | US$35.35 |
| 52 Week Low | US$23.39 |
| Beta | 1.35 |
| 1 Month Change | -24.80% |
| 3 Month Change | -18.68% |
| 1 Year Change | -14.89% |
| 3 Year Change | 16.89% |
| 5 Year Change | -7.57% |
| Change since IPO | 244.88% |
Recent News & Updates
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The bases of comparison we once used are no longer valid in my view.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
| TRN | US Machinery | US 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
| TRN volatility | |
|---|---|
| TRN Average Weekly Movement | 4.8% |
| Machinery Industry Average Movement | 5.7% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 2.9% |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1933 | 5,845 | E. Savage | https://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
| TRN fundamental statistics | |
|---|---|
| Market Cap | US$2.00b |
| Earnings (TTM) | US$49.80m |
| Revenue (TTM) | US$1.66b |
40.1x
P/E Ratio1.2x
P/S RatioIs TRN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TRN income statement (TTM) | |
|---|---|
| Revenue | US$1.66b |
| Cost of Revenue | US$1.31b |
| Gross Profit | US$344.30m |
| Other Expenses | US$294.50m |
| Earnings | US$49.80m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.60 |
| Gross Margin | 20.77% |
| Net Profit Margin | 3.00% |
| Debt/Equity Ratio | 403.5% |
How did TRN perform over the long term?
See historical performance and comparisonDividends
3.8%
Current Dividend Yield167%
Payout RatioDoes TRN pay a reliable dividends?
See TRN dividend history and benchmarks| Trinity Industries dividend dates | |
|---|---|
| Ex Dividend Date | Jul 14 2022 |
| Dividend Pay Date | Jul 29 2022 |
| Days until Ex dividend | 52 days |
| Days until Dividend pay date | 67 days |
Does TRN pay a reliable dividends?
See TRN dividend history and benchmarksValuation
Is Trinity Industries undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation 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 (15.3x).
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
5/6Future 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
1/6Past 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
1/6Financial 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
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.84%
Current Dividend Yield
Upcoming Dividend Payment
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.