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Triton International Limited (NYSE:TRTN), which is in the trade distributors business, and is based in Bermuda, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $33.5 at one point, and dropping to the lows of $29.55. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Triton International’s current trading price of $31.06 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Triton International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What’s the opportunity in Triton International?
Good news, investors! Triton International is still a bargain right now. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 6.82x is currently well-below the industry average of 16.55x, meaning that it is trading at a cheaper price relative to its peers. Although, there may be another chance to buy again in the future. This is because Triton International’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Triton International generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of Triton International, it is expected to deliver a relatively unexciting earnings growth of 0.1%, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for Triton International, at least in the near term.
What this means for you:
Are you a shareholder? Even though growth is relatively muted, since TRTN is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on TRTN for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TRTN. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Triton International. You can find everything you need to know about Triton International in the latest infographic research report. If you are no longer interested in Triton International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.