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$22.93|
|52 Week High||US$35.35|
|52 Week Low||US$20.94|
|1 Month Change||-9.83%|
|3 Month Change||-5.33%|
|1 Year Change||-17.90%|
|3 Year Change||28.53%|
|5 Year Change||-33.88%|
|Change since IPO||230.19%|
Recent News & Updates
Trinity declares $0.23 dividend
Trinity (NYSE:TRN) declares $0.23/share quarterly dividend, in line with previous. Forward yield 3.9% Payable Oct. 31; for shareholders of record Oct. 14; ex-div Oct. 13. See TRN Dividend Scorecard, Yield Chart, & Dividend Growth.
These 4 Measures Indicate That Trinity Industries (NYSE:TRN) Is Using Debt In A Risky Way
David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
There Are Better Options Than Trinity Industries
Trinity Industries' most recent financial performance was fine compared to 2021 but was quite soft when compared to the pre-pandemic period. Although TRN shares are cheaper, they're not cheap enough to make this a compelling investment in my view. Trinity demonstrates that in the world of investing, everything's relative. This stock is an "also ran" when compared to alternatives. It’s been about 3 months since I recommended investors continue to avoid Trinity Industries, Inc. (TRN) in an article with the very creative title “Continue To Avoid Trinity Industries Inc.” Since then, the shares have returned about 10.5% against a gain of 8.2% for the S&P 500. The company has reported financials since, so I thought I’d review the name yet again. I’ll decide whether or not it makes sense to buy based on the most recent financial results, and the current valuation. We’re all busy. I’m sure that all of you are busy working out which supermodel you’re going to take out this weekend, or which high end resort you’re going to move to over the winter. For my part, I’ve got hours of “Days of Our Lives” to catch up on. For that reason, I want to offer you this time saving “thesis statement” paragraph, where I offer the gist of my thinking in a quick, easy to read summary. I think investors would be wise to continue to eschew Trinity Industries. The company has performed well in 2022 relative to 2021, but performance is soft when compared to the pre-pandemic period. Although the shares are cheaper, they’re not objectively cheap and that matters in a world where investors are offered alternatives. I think this stock is an “also ran” when compared to the cash flows of the 10-year Treasury Note, and the exposure to the freight car refit of FreightCar America. Additionally, in my prior work on this name, I concluded that the dividend is barely covered, and that management wasted over $833 million of investor capital on a buyback, and nothing’s happened in the interim to change my views on these scores. In the domain of investing, everything’s relative, and I think Trinity remains a relatively poor choice for investors at the moment. Financial Snapshot Before getting into the financial summary proper, I think it would be helpful to summarize my take on this company so far. In my most recent article on this name, I determined that the shares were less attractive on a risk adjusted basis than a 10-year Treasury Note, as the latter offered virtually identical cash flows to the dividends, at far less risk. I also concluded that the dividend is barely covered. Finally, I decided that the $833.4 million of investor capital spent on buybacks was an inferior use of capital, and it would have been better if management used that cash to pay down debt. That brings us up to speed in general, and I would point readers to my two most recent articles on this name for more detail. Turning to the most recent period, it’s obvious that the company is improving in some ways. For instance, compared to 2021, revenue for the first six months of 2022 was ~43% higher, and operating profit is up by just under 17%. Additionally, income from continuing operations has swung from a loss of ~$6.7 million to $35.2 million. All that said, net income was off by $13 million, or 81%. The chief culprit for the turnaround in net income is the fact that net income from discontinued operations swung from a $13.9 million positive in 2021 to a $10.3 million negative in 2022. Additionally, the company took a $5.7 million net loss on the sale of discontinued operations during the most recent period. Thus, I don’t think the drop in net income from last year to this represents a pernicious, ongoing problem for the firm. At the same time, the capital structure has continued to deteriorate, with long term debt up by 4.75%, or $250.9 million. Also, I’ve begun to compare the most recent period to the pre-pandemic periods in order to offer greater context. After all, it’s one thing to be stronger than a period beset by a global pandemic. It’s another to be stronger than the pre-pandemic period. When we expand our view and compare the most recent six months to the same period in 2019, a much different picture emerges. Revenue during the first half of the current year is about 34% softer than it was in 2019, and net income is off by $63.9 million, or 95%. At the same time the capital structure has improved, as evidenced by the fact that long term debt is about $923 million higher now than it was in 2019. In my view the company has not fully recovered from the pandemic, as evidenced by the fact that 2022 performance is far softer than 2019 performance. Given all of the above, I’d need to see the shares trading at a significant discount before I buy. Trinity Financials (Trinity Industries investor relations) The Stock Since last I checked it seems that I've just experienced yet another bump in followers, which is simultaneously flattering and confusing. Anyway, welcome. You new people haven't been exposed to my thoughts about the difference between a company and a stock, so welcome to the party. I am of the view that the business and the stock are very different things, and as such, we need to consider each of them separately when making a buy or sell decision. I'm of the view that a reasonably strong company can be a terrible investment at the wrong price, while a struggling company can be a decent investment if you pick it up at a sufficient discount to intrinsic value. Another way to conceive of this idea is that business is an organization that buys a number of inputs, performs value-adding activities to those, and sells the results at a profit. The stock, on the other hand, is a traded instrument that reflects the crowd's aggregate belief about the long-term prospects for a given company. If you've invested in stocks previously, you may have noticed that the crowd can be capricious and has a tendency to drive prices up and down relatively frequently. Added to that is the volatility induced by the crowd's views about a given sector. Greenbrier, FreightCar America, and Trinity, may go up and down together, for instance, after an analyst offers commentary on only one of these. Additionally, a company's stock can be buffeted by our collective view about "stocks" as an asset class, and we see that the stock is often a poor proxy for what's going on at the firm. This is frustrating in some ways, but it also represents opportunity for us. If we can spot discrepancies between the price and likely future results, we'll do well over time. It's typically the case that the lower the price paid for a given stock, the greater the investor's future returns. In order to buy at these cheap prices, you need to buy when the crowd is feeling particularly down in the dumps about a given name. In my world, "down in the dumps" means "cheap." Those who read my stuff regularly know that I measure the cheapness of a stock in a few ways, ranging from the simple to the more complicated. On the simple side, I track multiples of price to some measure of economic value, like earnings, free cash flow, book value, and the like. Ideally, I want to see a company trading at a discount to both the overall market and its own history. When I last reviewed Trinity, I complained about the fact that the stock was trading at a price to sales ratio of about 2.15 times, price to book of 2.55 times, and sported a dividend yield of about 2.73%. Fast forward to the present and things look slightly better at the moment, per the following: TRN data by YCharts
|TRN||US Machinery||US Market|
Return vs Industry: TRN exceeded the US Machinery industry which returned -19.9% over the past year.
Return vs Market: TRN exceeded the US Market which returned -22.1% over the past year.
|TRN Average Weekly Movement||5.0%|
|Machinery Industry Average Movement||5.4%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
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|
Is TRN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TRN income statement (TTM)|
|Cost of Revenue||US$1.44b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.69|
|Net Profit Margin||3.16%|
How did TRN perform over the long term?See historical performance and comparison
4.0%Current Dividend Yield
Does TRN pay a reliable dividends?See TRN dividend history and benchmarks
|Trinity Industries dividend dates|
|Ex Dividend Date||Oct 13 2022|
|Dividend Pay Date||Oct 31 2022|
|Days until Ex dividend||14 days|
|Days until Dividend pay date||32 days|
Does TRN pay a reliable dividends?See TRN dividend history and benchmarks
Is TRN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TRN?
Other financial metrics that can be useful for relative valuation.
|What is TRN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TRN's PE Ratio compare to its peers?
|TRN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
FSS Federal Signal
GBX Greenbrier Companies
ALG Alamo Group
TRN Trinity Industries
Price-To-Earnings vs Peers: TRN is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the peer average (16x).
Price to Earnings Ratio vs Industry
How does TRN's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: TRN is expensive based on its Price-To-Earnings Ratio (33.3x) compared to the US Machinery industry average (18.2x)
Price to Earnings Ratio vs Fair Ratio
What is TRN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||33.3x|
|Fair PE Ratio||73.7x|
Price-To-Earnings vs Fair Ratio: TRN is good value based on its Price-To-Earnings Ratio (33.3x) compared to the estimated Fair Price-To-Earnings Ratio (73.7x).
Share Price vs Fair Value
What is the Fair Price of TRN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TRN ($22.93) is trading below our estimate of fair value ($136.6)
Significantly Below Fair Value: TRN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Trinity Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TRN's forecast earnings growth (78.5% per year) is above the savings rate (1.9%).
Earnings vs Market: TRN's earnings (78.5% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: TRN's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TRN's revenue (30.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: TRN's revenue (30.3% 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
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How has Trinity Industries performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TRN has a large one-off gain of $108.5M impacting its June 30 2022 financial results.
Growing Profit Margin: TRN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TRN's earnings have declined by 54.4% 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 (9.4%).
Return on Equity
High ROE: TRN's Return on Equity (5.9%) is considered low.
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How is Trinity Industries's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TRN's short term assets ($1.2B) exceed its short term liabilities ($580.0M).
Long Term Liabilities: TRN's short term assets ($1.2B) do not cover its long term liabilities ($6.8B).
Debt to Equity History and Analysis
Debt Level: TRN's net debt to equity ratio (437.2%) is considered high.
Reducing Debt: TRN's debt to equity ratio has increased from 75.8% to 440.9% over the past 5 years.
Debt Coverage: TRN's debt is not well covered by operating cash flow (3.7%).
Interest Coverage: TRN's interest payments on its debt are not well covered by EBIT (0.9x coverage).
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What is Trinity Industries's current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
|Trinity Industries Dividend Yield vs Market|
|Company (Trinity Industries)||4.0%|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Machinery)||2.0%|
|Analyst forecast in 3 Years (Trinity Industries)||n/a|
Notable Dividend: TRN's dividend (4.01%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: TRN's dividend (4.01%) is low compared to the top 25% of dividend payers in the US market (4.69%).
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 (143.1%), TRN's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: TRN is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
E. Savage (58 yo)
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
|E. Savage's Compensation vs Trinity Industries Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$6m||US$850k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$7m||US$741k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$267k||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$94k||n/a|
Compensation vs Market: E.'s total compensation ($USD5.58M) is about average for companies of similar size in the US market ($USD5.58M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
Experienced Management: TRN's management team is considered experienced (2.5 years average tenure).
Experienced Board: TRN's board of directors are considered experienced (3.8 years average tenure).
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
|24 Mar 22||SellUS$205,140||Brian Madison||Individual||6,000||US$34.19|
|22 Feb 22||SellUS$107,541,000||ValueAct Capital Management, L.P.||Company||3,780,000||US$28.45|
|08 Nov 21||SellUS$68,676,000||ValueAct Capital Management, L.P.||Company||2,360,000||US$29.10|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Trinity Industries, Inc.'s employee growth, exchange listings and data sources
- Name: Trinity Industries, Inc.
- Ticker: TRN
- Exchange: NYSE
- Founded: 1933
- Industry: Construction Machinery and Heavy Trucks
- Sector: Capital Goods
- Implied Market Cap: US$1.880b
- Shares outstanding: 82.01m
- Website: https://www.trin.net
Number of Employees
- Trinity Industries, Inc.
- 14221 North Dallas Parkway
- Suite 1100
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TRN||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Apr 1972|
|TTA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Apr 1972|
|TRN *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Apr 1972|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
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.