NYSE:TRTN

Stock Analysis Report

Executive Summary

Triton International Limited engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal transportation equipment to shipping lines, and freight forwarding companies and manufacturers.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Triton International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRTN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

TRTN

-0.6%

US Trade Distributors

-1.1%

US Market


1 Year Return

15.5%

TRTN

9.2%

US Trade Distributors

17.8%

US Market

Return vs Industry: TRTN exceeded the US Trade Distributors industry which returned 9.2% over the past year.

Return vs Market: TRTN underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

TRTNIndustryMarket
7 Day-3.0%-0.6%-1.1%
30 Day0.7%0.3%1.5%
90 Day-0.5%-0.5%6.6%
1 Year23.1%15.5%11.3%9.2%20.2%17.8%
3 Year80.6%51.1%20.5%14.9%47.5%38.1%
5 Yearn/a42.9%32.2%71.2%52.4%

Price Volatility Vs. Market

How volatile is Triton International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRTN ($38.24) is trading below our estimate of fair value ($80.66)

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


Price To Earnings Ratio

PE vs Industry: TRTN is good value based on its PE Ratio (8.4x) compared to the Trade Distributors industry average (15.9x).

PE vs Market: TRTN is good value based on its PE Ratio (8.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRTN is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: TRTN is good value based on its PB Ratio (1.3x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRTN's forecast earnings growth (3.7% per year) is above the savings rate (1.7%).

Earnings vs Market: TRTN's earnings (3.7% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: TRTN's revenue (0.6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: TRTN's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRTN's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has Triton International performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRTN has high quality earnings.

Growing Profit Margin: TRTN's current net profit margins (24.4%) are lower than last year (24.9%).


Past Earnings Growth Analysis

Earnings Trend: TRTN's earnings have grown significantly by 37.5% per year over the past 5 years.

Accelerating Growth: TRTN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TRTN had negative earnings growth (-3%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.2%).


Return on Equity

High ROE: TRTN's Return on Equity (14%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Triton International's financial position?


Financial Position Analysis

Short Term Liabilities: TRTN's short term assets ($930.6M) exceed its short term liabilities ($176.2M).

Long Term Liabilities: TRTN's short term assets ($930.6M) do not cover its long term liabilities ($6.9B).


Debt to Equity History and Analysis

Debt Level: TRTN's debt to equity ratio (262.2%) is considered high.

Reducing Debt: TRTN's debt to equity ratio has increased from 261.2% to 262.2% over the past 5 years.

Debt Coverage: TRTN's debt is not well covered by operating cash flow (16%).

Interest Coverage: TRTN's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet

Inventory Level: TRTN has a low level of unsold assets or inventory.

Debt Coverage by Assets: TRTN's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Triton International's current dividend yield, its reliability and sustainability?

5.44%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Triton International before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years6.1%

Current dividend yield vs market & industry

Notable Dividend: TRTN's dividend (5.44%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: TRTN's dividend (5.44%) is in the top 25% of dividend payers in the US market (3.73%)


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.5%), TRTN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRTN's dividends in 3 years are forecast to be well covered by earnings (47.5% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Brian Sondey (52yo)

3.6yrs

Tenure

US$4,473,327

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 ($USD4.47M) is about average for companies of similar size in the US market ($USD4.86M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Sondey
Chairman & CEO3.6yrsUS$4.47m0.66% $18.2m
John Burns
Senior VP & CFO3.6yrsUS$1.33m0.15% $4.2m
John O'Callaghan
Executive VP and Global Head of Field Marketing & Operations3.6yrsUS$1.26m0.20% $5.4m
Kevin Valentine
Senior Vice President of Triton Container Sales0yrsUS$1.15m0.098% $2.7m
Michelle Gallagher
Principal Accounting Officer0yrsno data0.012% $324.0k
Andrew Greenberg
Senior Vice President of Finance & Investor Relations0yrsno datano data
Carla Heiss
Senior VP0.2yrsno data0.012% $324.0k

3.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TRTN's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Sondey
Chairman & CEO3.6yrsUS$4.47m0.66% $18.2m
Robert Rosner
Lead Independent Director0yrsUS$251.54kno data
Kenneth Hanau
Independent Director3.6yrsUS$231.54k0.048% $1.3m
David Coulter
Independent Director4.3yrsUS$241.54k0.045% $1.3m
John Hextall
Independent Director3.6yrsUS$231.54k0.030% $832.9k
Claude Germain
Independent Director3.6yrsUS$251.54k0.055% $1.5m
Karen Austin
Independent Director1.1yrsno data0.0085% $233.8k
Robert Alspaugh
Independent Director8.1yrsUS$246.54k0.043% $1.2m
Malcolm Baker
Independent Director3.6yrsUS$231.54k0.072% $2.0m
Simon Vernon
Director3.6yrsUS$3.69m0.31% $8.5m

3.6yrs

Average Tenure

58.5yo

Average Age

Experienced Board: TRTN's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Triton International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Triton International Limited
  • Ticker: TRTN
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$2.757b
  • Shares outstanding: 72.10m
  • Website: https://www.trtn.com

Number of Employees


Location

  • Triton International Limited
  • Canon's Court
  • 22 Victoria Street
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TR7DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2016
TRTNNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 2016
TRTN.PRANYSE (New York Stock Exchange)8.5% CUM RED AUSUSDMar 2019
TRTN.PRBNYSE (New York Stock Exchange)8% CUM PFD SER BUSUSDJun 2019
TRTN.PRCNYSE (New York Stock Exchange)7.375 CUM PFD CUSUSDNov 2019
TRTN.PRDNYSE (New York Stock Exchange)6.875 PFD SR DUSUSDJan 2020

Biography

Triton International Limited engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal transportation equipment 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 intermodal containers, as well as provides container management services. As of December 31, 2018, its total fleet consisted of 3.7 million containers and chassis representing 6.2 million twenty-foot equivalent units. The company also purchases containers from shipping line customers and other sellers, and resells these containers to container retailers and users. It operates in Asia, Europe, the Americas, Bermuda, and internationally. The company was founded in 1980 and is based in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:36
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.