Trinity Industries, Inc. (TRN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AGCO Corp.

Federal Signal Corp.

Arcosa, Inc.

BWX Technologies, Inc.

The Toro Co.

BorgWarner, Inc.

SiteOne Landscape Supply, Inc.

Trinity Industries, Inc.

Alamo Group, Inc.

Terex Corp.

CNH Industrial NV

Why is Trinity Industries, Inc. ?

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

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

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 -25.19%, 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

Below par performance in long term as well as near term

Along with generating -25.19% 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 Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Trinity Industries, Inc. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Trinity Industries, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Trinity Industries, Inc.

1.54%

-0.08

32.81%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.53%

EBIT Growth (5y)

6.47%

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

39.63%

Pledged Shares

Institutional Holding

97.78%

ROCE (avg)

4.41%

ROE (avg)

12.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.35

EV to EBIT

21.19

EV to EBITDA

11.48

EV to Capital Employed

1.23

EV to Sales

3.55

PEG Ratio

0.12

Dividend Yield

292.09%

ROCE (Latest)

5.83%

ROE (Latest)

26.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

27What is working for the Company

ROCE(HY)

Highest at 24.37%

DIVIDEND PER SHARE(HY)

Highest at USD 5.41

INTEREST COVERAGE RATIO(Q)

Highest at 259.46

RAW MATERIAL COST(Y)

Fallen by 1.52% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 485.11 %

PRE-TAX PROFIT(Q)

Highest at USD 273 MM

NET PROFIT(Q)

Highest at USD 194.98 MM

EPS(Q)

Highest at USD 2.28

-13What is not working for the Company

NET SALES(HY)

At USD 1,065.3 MM has Grown at -25.41%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 13.59%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.35 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.41 times

OPERATING PROFIT MARGIN(Q)

Lowest at 26.49 %

Here's what is working for Trinity Industries, Inc.

Pre-Tax Profit

At USD 273 MM has Grown at 572.41%

over average net sales of the previous four periods of USD 40.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 194.98 MM has Grown at 628.96%

over average net sales of the previous four periods of USD 26.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Interest Coverage Ratio

Highest at 259.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 5.41 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Pre-Tax Profit

Highest at USD 273 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 194.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.28

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Lowest at 485.11 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 1.52% (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 78.7 MM

in the last five periods

MOJO 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 1,065.3 MM has Grown at -25.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Operating Profit Margin

Lowest at 26.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.35 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 13.59%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.95 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income