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 -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
4
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 ReportHow 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.
31.36%
-0.08
32.81%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
97.25%
ROCE (avg)
4.41%
ROE (avg)
12.09%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
2.44
EV to EBIT
21.48
EV to EBITDA
11.64
EV to Capital Employed
1.25
EV to Sales
3.59
PEG Ratio
0.13
Dividend Yield
280.66%
ROCE (Latest)
5.83%
ROE (Latest)
26.98%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
NET PROFIT(HY)
Higher at USD 221.06 MM
ROCE(HY)
Highest at 24.61%
DIVIDEND PER SHARE(HY)
Highest at USD 5.69
RAW MATERIAL COST(Y)
Fallen by -2.08% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 475.5 %
-16What is not working for the Company
PRE-TAX PROFIT(Q)
At USD 35.2 MM has Fallen at -63.3%
NET PROFIT(Q)
At USD 26.08 MM has Fallen at -60.84%
INTEREST COVERAGE RATIO(Q)
Lowest at 226.34
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.69 times
NET SALES(Q)
At USD 492 MM has Fallen at -8.76%
OPERATING PROFIT(Q)
Lowest at USD 147.8 MM
Here's what is working for Trinity Industries, Inc.
Dividend per share
Highest at USD 5.69 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debt-Equity Ratio
Lowest at 475.5 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -2.08% (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
Here's what is not working for Trinity Industries, Inc.
Pre-Tax Profit
At USD 35.2 MM has Fallen at -63.3%
over average net sales of the previous four periods of USD 95.9 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Net Profit
At USD 26.08 MM has Fallen at -60.84%
over average net sales of the previous four periods of USD 66.6 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest Coverage Ratio
Lowest at 226.34
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales
At USD 492 MM has Fallen at -8.76%
over average net sales of the previous four periods of USD 539.22 MMMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Operating Profit
Lowest at USD 147.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Debtors Turnover Ratio
Lowest at 5.69 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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