Trinity Industries Inc (TRN) stock analysis

P/E below its 5-year median

Trinity Industries's P/E of 7.5 is below its own 5-year median of 18.2.

P/E below the industry

Trinity Industries's P/E of 7.5 is below the Transportation Equipment median of 20.3.

EV/EBITDA below its 5-year median

Trinity Industries's EV/EBITDA of 2.1 is below its 5-year median of 3.2.

P/B above the industry

Trinity Industries's price-to-book of 2.09 is above the Transportation Equipment median of 1.85.

Trading below fair value

The share price of $30.15 is below our fair value estimate of $83.06.

Margin of safety over 20%

The price is 63.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 62.6% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -2.4% over the last twelve months; the Transportation Equipment median is 9.5%.

Guidance lowered

Trinity Industries lowered its 2026 Net fleet investment outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 24.6% over the last twelve months, against 26.3% a year earlier.

Return on equity under 15%

Return on equity was 30.7% over the last twelve months and averaged 13.3% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 63.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Trinity Industries's return on equity of 30.7% is above the Transportation Equipment median of 2.7%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 15.4% over the last twelve months, against a 5-year average of 7.0%.

Net margin above the industry

Trinity Industries's net margin of 15.4% is above the Transportation Equipment median of 1.9%.

No debt

Trinity Industries has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.93; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Trinity Industries paid dividends worth 4.1% of the share price over the last twelve months.

Yield below Treasuries

The 4.1% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Trinity Industries yields 4.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 30.5% of net income.

Covered by free cash flow

Dividends take 27.9% of free cash flow.