(TRN) Trinity Industries - Overview
Sector: Industrials | Industry: Railroads | Exchange: NYSE (USA) | Market Cap: 2.724m USD | Total Return: 39.1% in 12m
Industry Rotation: +8.8
Avg Turnover: 18.9M
EPS Trend: 64.0%
Qual. Beats: 0
Rev. Trend: -59.9%
Qual. Beats: 0
Warnings
High Debt/EBITDA (7.9) with thin interest coverage (1.3)
High Debt while negative Cash Flow
Below Avwap Earnings
Tailwinds
No distinct edge detected
Trinity Industries, Inc. (TRN) is a North American provider of railcar products and services operating through two primary segments: Railcar Leasing and Services, and Rail Products. The company manufactures freight and tank railcars while maintaining a large proprietary fleet used to provide leasing, management, and maintenance services to industrial shippers and railroads. Its operations support diverse sectors including chemicals, energy, agriculture, and construction.
The railcar industry is characterized by high barriers to entry and cyclical demand tied to heavy industrial production and commodity transport volumes. Trinity’s business model utilizes a vertically integrated approach, allowing it to capture value from both the initial manufacturing of equipment and recurring revenue through long-term lease agreements. Investors looking for deeper fundamental insights may find further value in exploring the data available on ValueRay.
Founded in 1933 and based in Dallas, Texas, the company distributes its products through a combination of internal sales personnel and independent representatives. By managing a fleet of over 100,000 railcars, Trinity functions as a critical infrastructure provider for the North American logistics network.
- North American railcar replacement cycle drives manufacturing backlog and revenue growth
- Interest rate fluctuations impact cost of capital for fleet expansion and leasing
- Industrial production levels in energy and agriculture dictate railcar utilization rates
- Maintenance and modification service demand stabilizes recurring cash flow during downturns
- Steel price volatility directly influences manufacturing margins and railcar sales pricing
| Net Income: 255.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.05 > 0.02 and ΔFCF/TA -5.59 > 1.0 |
| NWC/Revenue: 27.62% < 20% (prev 18.18%; Δ 9.45% < -1%) |
| CFO/TA 0.05 > 3% & CFO 381.0m > Net Income 255.2m |
| Net Debt (5.13b) to EBITDA (645.7m): 7.94 < 3 |
| Current Ratio: 2.10 > 1.5 & < 3 |
| Outstanding Shares: last quarter (81.9m) vs 12m ago -2.27% < -2% |
| Gross Margin: 27.01% > 18% (prev 0.23%; Δ 2.68k% > 0.5%) |
| Asset Turnover: 24.28% > 50% (prev 32.95%; Δ -8.67% > 0%) |
| Interest Coverage Ratio: 1.29 > 6 (EBITDA TTM 645.7m / Interest Expense TTM 265.3m) |
| A: 0.07 (Total Current Assets 1.09b - Total Current Liabilities 520.1m) / Total Assets 8.33b |
| B: 0.13 (Retained Earnings 1.08b / Total Assets 8.33b) |
| C: 0.04 (EBIT TTM 342.3m / Avg Total Assets 8.50b) |
| D: 0.15 (Book Value of Equity 1.08b / Total Liabilities 7.18b) |
| Altman-Z'' = 1.30 = BB |
| DSRI: 1.32 (Receivables 354.3m/371.4m, Revenue 2.06b/2.85b) |
| GMI: 0.84 (GM 27.01% / 22.67%) |
| AQI: 1.05 (AQ_t 0.07 / AQ_t-1 0.07) |
| SGI: 0.72 (Revenue 2.06b / 2.85b) |
| TATA: -0.02 (NI 255.2m - CFO 381.0m) / TA 8.33b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
Over the past week, the price has changed by -2.78%, over one month by +11.26%, over three months by +0.03% and over the past year by +39.12%.
- StrongBuy: 0
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 35.5 | 3.5% |
P/E Forward = 20.0803
P/S = 1.32
P/B = 2.6996
P/EG = 0.692
Revenue TTM = 2.06b USD
EBIT TTM = 342.3m USD
EBITDA TTM = 645.7m USD
Long Term Debt = 5.38b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 5.38b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.13b USD (from netDebt column, last quarter)
Enterprise Value = 7.85b USD (2.72b + Debt 5.38b - CCE 252.6m)
Interest Coverage Ratio = 1.29 (Ebit TTM 342.3m / Interest Expense TTM 265.3m)
EV/FCF = -17.78x (Enterprise Value 7.85b / FCF TTM -441.8m)
FCF Yield = -5.63% (FCF TTM -441.8m / Enterprise Value 7.85b)
FCF Margin = -21.41% (FCF TTM -441.8m / Revenue TTM 2.06b)
Net Margin = 12.37% (Net Income TTM 255.2m / Revenue TTM 2.06b)
Gross Margin = 27.01% ((Revenue TTM 2.06b - Cost of Revenue TTM 1.51b) / Revenue TTM)
Gross Margin QoQ = 26.20% (prev 25.02%)
Tobins Q-Ratio = 0.94 (Enterprise Value 7.85b / Total Assets 8.33b)
Interest Expense / Debt = 1.22% (Interest Expense 65.4m / Debt 5.38b)
Taxrate = 24.22% (8.50m / 35.1m)
NOPAT = 259.4m (EBIT 342.3m * (1 - 24.22%))
Current Ratio = 2.10 (Total Current Assets 1.09b / Total Current Liabilities 520.1m)
Debt / Equity = 4.99 (Debt 5.38b / totalStockholderEquity, last quarter 1.08b)
Debt / EBITDA = 7.94 (Net Debt 5.13b / EBITDA 645.7m)
Debt / FCF = -11.61 (negative FCF - burning cash) (Net Debt 5.13b / FCF TTM -441.8m)
Total Stockholder Equity = 1.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.00% (Net Income 255.2m / Total Assets 8.33b)
RoE = 24.50% (Net Income TTM 255.2m / Total Stockholder Equity 1.04b)
RoCE = 5.33% (EBIT 342.3m / Capital Employed (Equity 1.04b + L.T.Debt 5.38b))
RoIC = 3.87% (NOPAT 259.4m / Invested Capital 6.70b)
WACC = 3.74% (E(2.72b)/V(8.11b) * Re(9.32%) + D(5.38b)/V(8.11b) * Rd(1.22%) * (1-Tc(0.24)))
Discount Rate = 9.32% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.00 | Cagr: -0.86%
[DCF] Fair Price = unknown (Cash Flow -441.8m)
EPS Correlation: 63.99 | EPS CAGR: 31.26% | SUE: 0.02 | # QB: 0
Revenue Correlation: -59.85 | Revenue CAGR: -10.54% | SUE: -0.67 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.35 | Chg30d=+73.72% | Revisions=+20% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.27 | Chg30d=-27.03% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=2.33 | Chg30d=+25.68% | Revisions=+20% | GrowthEPS=-26.0% | GrowthRev=-1.3%
EPS next Year (2027-12-31): EPS=2.38 | Chg30d=+7.95% | Revisions=+20% | GrowthEPS=+2.1% | GrowthRev=+12.9%
[Analyst] Revisions Ratio: +20%