ScoreWhy is Trinity Industries, Inc. ?
1
High Debt company with Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -2.01% and Operating profit at 3.22% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 12.09% signifying low profitability per unit of shareholders funds
2
With a fall in Operating Profit of -4.47%, the company declared Very Negative results in Jun 25
- NET SALES(Q) Lowest at USD 506.2 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 237.96
- OPERATING PROFIT(Q) Lowest at USD 161.1 MM
3
With ROCE of 6.49%, it has a expensive valuation with a 1.19 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -26.40%, its profits have risen by 12.3% ; the PEG ratio of the company is 1.1
- At the current price, the company has a high dividend yield of 421.5
4
Below par performance in long term as well as near term
- Along with generating -26.40% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Trinity Industries, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Trinity Industries, Inc.
-26.4%
-0.16
32.98%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.01%
EBIT Growth (5y)
3.22%
EBIT to Interest (avg)
1.22
Debt to EBITDA (avg)
9.53
Net Debt to Equity (avg)
5.11
Sales to Capital Employed (avg)
0.42
Tax Ratio
21.72%
Dividend Payout Ratio
69.36%
Pledged Shares
0
Institutional Holding
90.45%
ROCE (avg)
4.41%
ROE (avg)
12.09%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
2.14
EV to EBIT
18.28
EV to EBITDA
10.72
EV to Capital Employed
1.19
EV to Sales
2.67
PEG Ratio
1.06
Dividend Yield
421.49%
ROCE (Latest)
6.49%
ROE (Latest)
16.37%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 6.75
OPERATING PROFIT MARGIN(Q)
Highest at 31.83 %
RAW MATERIAL COST(Y)
Fallen by -29.23% (YoY
-39What is not working for the Company
NET SALES(Q)
Lowest at USD 506.2 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 237.96
OPERATING PROFIT(Q)
Lowest at USD 161.1 MM
PRE-TAX PROFIT(Q)
Lowest at USD 26 MM
NET PROFIT(Q)
Lowest at USD 16 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.75 times
EPS(Q)
Lowest at USD 0.17
Here's what is working for Trinity Industries, Inc.
Operating Profit Margin
Highest at 31.83 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Dividend per share
Highest at USD 6.75 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Raw Material Cost
Fallen by -29.23% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 75.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Trinity Industries, Inc.
Net Sales
At USD 506.2 MM has Fallen at -29.08%
over average net sales of the previous four periods of USD 713.75 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (USD MM)
Pre-Tax Profit
At USD 26 MM has Fallen at -52.68%
over average net sales of the previous four periods of USD 54.95 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 16 MM has Fallen at -58%
over average net sales of the previous four periods of USD 38.1 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Sales
Lowest at USD 506.2 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term sales trend is very negative
Net Sales (USD MM)
Interest Coverage Ratio
Lowest at 237.96
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at USD 161.1 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 26 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 16 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
EPS
Lowest at USD 0.17
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debtors Turnover Ratio
Lowest at 6.75 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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