Trinity Industries, Inc.
Trinity Industries, Inc. Fundamental Analysis
Trinity Industries, Inc. (TRN) shows strong financial fundamentals with a PE ratio of 11.00, profit margin of 11.73%, and ROE of 24.45%. The company generates $2.2B in annual revenue with moderate year-over-year growth of 3.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TRN's fundamental strength across five key dimensions:
Efficiency Score
WeakTRN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTRN trades at attractive valuation levels.
Growth Score
ModerateTRN shows steady but slowing expansion.
Financial Health Score
ModerateTRN shows balanced financial health with some risks.
Profitability Score
WeakTRN struggles to sustain strong margins.
Key Financial Metrics
Is TRN Expensive or Cheap?
P/E Ratio
TRN trades at 11.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TRN's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Trinity Industries, Inc. at 2.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.86 times EBITDA. This is generally considered low.
How Well Does TRN Make Money?
Net Profit Margin
For every $100 in sales, Trinity Industries, Inc. keeps $11.73 as profit after all expenses.
Operating Margin
Core operations generate 18.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.45 in profit for every $100 of shareholder equity.
ROA
Trinity Industries, Inc. generates $3.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Trinity Industries, Inc. produces operating cash flow of $363.92M, showing steady but balanced cash generation.
Free Cash Flow
Trinity Industries, Inc. generates weak or negative free cash flow of $-440.31M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.45 in free cash annually.
FCF Yield
TRN converts -15.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.86
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TRN Stacks Against Its Sector Peers
| Metric | TRN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.00 | 26.76 | Better (Cheaper) |
| ROE | 24.45% | 1300.00% | Weak |
| Net Margin | 11.73% | -29570.00% (disorted) | Strong |
| Debt/Equity | 5.05 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.86 | 10.68 | Neutral |
| ROA | 3.00% | -1545134.00% (disorted) | Weak |
TRN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Trinity Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.14%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
54.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
123.57%
Industry Style: Cyclical, Value, Infrastructure
High Growth