Triton International (NYSE:TRTN) - Share price, News & Analysis

TRTN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	3/6
Financial Health	3/6
Dividends	3/6

TRTN Stock Overview

Rewards

Price-To-Earnings ratio (7.5x) is below the US market (14.9x)

Earnings are forecast to grow 5.81% per year

Earnings have grown 14.2% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 4.14% is not well covered by earnings

Triton International Competitors

Fastenal

NasdaqGS:FAST

US$29.7b

United Rentals

NYSE:URI

US$19.8b

Watsco

NYSE:WSO

US$8.8b

Beacon Roofing Supply

NasdaqGS:BECN

US$4.1b

Price History & Performance

Summary of all time highs, changes and price drops for Triton International
Historical stock prices
Current Share Price	US$62.85
52 Week High	US$72.34
52 Week Low	US$46.75
Beta	1.41
1 Month Change	1.91%
3 Month Change	-2.15%
1 Year Change	21.54%
3 Year Change	106.81%
5 Year Change	124.30%
Change since IPO	297.79%

Recent News & Updates

May 13

Triton International Preferred - Consider For 7.5% Qualified Yield

Triton is an investment grade issuer since March 2021, rated BBB- by S&P. Triton released solid Q1 results and its stock price is flat in 2022, reflecting its strong business & outlook. 8.0% and 8.5% preferred stock issued in 2019 will likely be called when first callable in 2024. Prices for preferred have plunged presenting a unique 7.5%+ yield for tax qualified issues likely to be called in 2 years.

May 06

Triton International: Dividend Stock Tailor-Made For The Current Environment

Triton International posted fantastic Q1 results, posting adjusted net income. The company continues to multiple market tailwinds, which, combined with its multi-year leases, are set to keep producing record profits. Shares still offer 45%+ upside, remaining substantially undervalued.

May 04

Returns On Capital Are Showing Encouraging Signs At Triton International (NYSE:TRTN)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Shareholder Returns

	TRTN	US Trade Distributors	US Market
7D	3.2%	0.4%	1.0%
1Y	21.5%	-6.0%	-15.1%

Return vs Industry: TRTN exceeded the US Trade Distributors industry which returned -6.1% over the past year.

Return vs Market: TRTN exceeded the US Market which returned -13.2% over the past year.

Price Volatility

Is TRTN's price volatile compared to industry and market?
TRTN volatility
TRTN Average Weekly Movement	5.3%
Trade Distributors Industry Average Movement	7.3%
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: TRTN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

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

About the Company

Founded	Employees	CEO	Website
1980	237	Brian Sondey	https://www.tritoninternational.com

Triton International Limited engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal containers and chassis to shipping lines, and freight forwarding companies and manufacturers. It operates in two segments, Equipment Leasing and Equipment Trading. The company primarily leases dry, refrigerated, special, and tank containers; and chassis used for the transportation of containers, as well as provides maritime container management services.

Triton International Fundamentals Summary

How do Triton International's earnings and revenue compare to its market cap?
TRTN fundamental statistics
Market Cap	US$4.04b
Earnings (TTM)	US$536.41m
Revenue (TTM)	US$1.75b

7.5x

P/E Ratio

2.3x

P/S Ratio

Is TRTN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TRTN income statement (TTM)
Revenue	US$1.75b
Cost of Revenue	US$23.71m
Gross Profit	US$1.72b
Other Expenses	US$1.19b
Earnings	US$536.41m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.35
Gross Margin	98.64%
Net Profit Margin	30.68%
Debt/Equity Ratio	272.8%

How did TRTN perform over the long term?

See historical performance and comparison

Dividends

4.1%

Current Dividend Yield

30%

Payout Ratio

Does TRTN pay a reliable dividends?

See TRTN dividend history and benchmarks

When do you need to buy TRTN by to receive an upcoming dividend?
Triton International dividend dates
Ex Dividend Date	Jun 08 2022
Dividend Pay Date	Jun 23 2022
Days until Ex dividend	12 days
Days until Dividend pay date	27 days

Does TRTN pay a reliable dividends?

See TRTN dividend history and benchmarks

Valuation

Is Triton International undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.52x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: TRTN ($62.85) is trading above our estimate of fair value ($37.32)

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

Price To Earnings Ratio

PE vs Industry: TRTN is good value based on its Price-To-Earnings Ratio (7.5x) compared to the US Trade Distributors industry average (12.6x).

PE vs Market: TRTN is good value based on its Price-To-Earnings Ratio (7.5x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: TRTN is poor value based on its PEG Ratio (1.3x)

Price to Book Ratio

PB vs Industry: TRTN is good value based on its Price-To-Book Ratio (1.6x) compared to the US Trade Distributors industry average (2x).

Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRTN's forecast earnings growth (5.8% per year) is above the savings rate (1.9%).

Earnings vs Market: TRTN's earnings (5.8% per year) are forecast to grow slower than the US market (12.1% per year).

High Growth Earnings: TRTN's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRTN's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: TRTN's revenue is forecast to decline over the next 3 years (-0.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

Past Performance

How has Triton International performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

14.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TRTN has a high level of non-cash earnings.

Growing Profit Margin: TRTN's current net profit margins (30.7%) are higher than last year (24.9%).

Past Earnings Growth Analysis

Earnings Trend: TRTN's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: TRTN's earnings growth over the past year (53%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: TRTN earnings growth over the past year (53%) underperformed the Trade Distributors industry 80.4%.

Return on Equity

High ROE: TRTN's Return on Equity (18.3%) is considered low.

Financial Health

How is Triton International's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TRTN's short term assets ($2.3B) exceed its short term liabilities ($129.2M).

Long Term Liabilities: TRTN's short term assets ($2.3B) do not cover its long term liabilities ($9.2B).

Debt to Equity History and Analysis

Debt Level: TRTN's net debt to equity ratio (269.4%) is considered high.

Reducing Debt: TRTN's debt to equity ratio has reduced from 357.8% to 272.8% over the past 5 years.

Debt Coverage: TRTN's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: TRTN's interest payments on its debt are well covered by EBIT (4.5x coverage).

Balance Sheet

Dividend

What is Triton International 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

4.14%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: TRTN's dividend (4.14%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: TRTN's dividend (4.14%) is in the top 25% of dividend payers in the US market (4.06%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TRTN has been paying a dividend for less than 10 years.

Growing Dividend: TRTN's dividend payments have increased, but the company has only paid a dividend for 6 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.1%), TRTN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: TRTN is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

5.8yrs

Average management tenure

CEO

Brian Sondey (54 yo)

5.83yrs

Tenure

US$5,768,732

Compensation

Mr. Brian M. Sondey has been the Chairman of the Board and Chief Executive Officer of Triton International Limited since July 12, 2016. Mr. Sondey serves as the Chief Executive Officer at TAL International...

CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD5.77M) is about average for companies of similar size in the US market ($USD6.91M).

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

Leadership Team

Experienced Management: TRTN's management team is seasoned and experienced (5.8 years average tenure).

Board Members

Experienced Board: TRTN's board of directors are considered experienced (5.8 years average tenure).

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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31