Trinity Industries (TRN) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 4.24%
• Average Volume (3M): 549.89K
• Price to Earnings (P/E): 24.6
• Beta (1Y): 1.16
• Revenue Growth: -22.95%
• EPS Growth: -40.67%
• Country: US
• Employees: 7,380
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.19
• Shares Outstanding: 80,837,360
• 10 Day Avg. Volume: 625,407
• 30 Day Avg. Volume: 549,895
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.57
• Enterprise Value/Revenue: 3.19
• Enterprise Value/Gross Profit: 13.38
• Enterprise Value/Ebitda: 12.29
• 1Y Price Target: $29.00
• Price Target Upside: 4.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: $31.00 ▲(11.51% Upside)

Trinity Industries' overall score reflects its operational efficiency and positive technical indicators, offset by financial challenges such as declining revenue and high leverage. The earnings call provided a positive outlook, but valuation concerns and cash flow issues weigh on the score.

Trinity Industries Business Overview & Revenue Model

Company Description

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2021, it had a fleet of 106,970 owned or leased railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. Trinity Industries, Inc. was incorporated in 1933 and is headquartered in Dallas, Texas.

How the Company Makes Money

Trinity Industries generates revenue through several key streams, primarily from the manufacturing and leasing of railcars. The Rail Group is a significant contributor, where the company designs, manufactures, and sells a variety of railcars, including tank cars, freight cars, and intermodal containers. Additionally, the leasing of these railcars provides a recurring revenue stream. The Construction Products Group contributes by selling products like concrete and asphalt, while the Energy Equipment Group derives income from manufacturing equipment utilized in the oil and gas industry. Partnerships with major transportation and energy companies enhance their earnings potential, along with market demand fluctuations in rail and construction sectors impacting revenue generation.

Trinity Industries Financial Statement Overview

Summary

Trinity Industries presents a mixed financial picture. While operational efficiency is evident from strong EBIT and EBITDA margins, declining revenue and high leverage are concerns. The cash flow situation is challenging, with negative free cash flow growth. The company needs to focus on improving revenue growth and managing debt levels to enhance financial stability.

Income Statement

Trinity Industries shows a mixed performance in its income statement. The TTM gross profit margin of 23.18% is decent, indicating effective cost management. However, the net profit margin of 4.10% suggests room for improvement in profitability. The revenue growth rate is negative at -11.74% TTM, indicating a decline in sales, which is a concern. The EBIT and EBITDA margins are relatively strong at 16.92% and 28.80% TTM, respectively, showing operational efficiency.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 5.37, indicating significant reliance on debt financing, which poses a risk. The return on equity is modest at 7.46% TTM, reflecting moderate profitability relative to shareholder equity. The equity ratio is not provided, but the high debt levels suggest a lower proportion of equity in the capital structure.

Cash Flow

Cash flow analysis shows challenges, with a negative free cash flow growth rate of -324.70% TTM, indicating cash outflows. The operating cash flow to net income ratio of 1.91 TTM is strong, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting issues in converting profits to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	3.08B	2.98B	1.98B	1.52B	2.00B
Gross Profit	600.10M	668.20M	527.10M	367.70M	354.50M	491.00M
EBITDA	653.50M	789.10M	707.70M	458.00M	439.90M	-68.30M
Net Income	96.50M	138.40M	106.00M	98.90M	39.30M	-226.10M
Balance Sheet
Total Assets	8.81B	8.83B	8.91B	8.72B	8.24B	8.70B
Cash, Cash Equivalents and Short-Term Investments	315.30M	228.20M	105.70M	79.60M	167.30M	132.00M
Total Debt	5.86B	5.69B	5.75B	5.61B	5.17B	5.02B
Total Liabilities	7.55B	7.53B	7.63B	7.45B	6.94B	6.69B
Stockholders Equity	1.01B	1.06B	1.04B	1.01B	1.03B	1.74B
Cash Flow
Free Cash Flow	-56.40M	-21.90M	-414.50M	-979.60M	41.00M	-52.80M
Operating Cash Flow	420.10M	573.80M	295.60M	-12.80M	611.80M	651.70M
Investing Cash Flow	-402.30M	-214.60M	-363.00M	-260.70M	276.30M	-532.90M
Financing Cash Flow	-64.80M	-219.90M	8.20M	265.40M	-814.10M	-168.00M

Trinity Industries Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRN, the sentiment is Neutral. The current price of 27.8 is below the 20-day moving average (MA) of 28.28, above the 50-day MA of 27.44, and below the 200-day MA of 29.16, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.71 is Neutral, neither overbought nor oversold. The STOCH value of 40.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRN.

Trinity Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSTR	76 Outperform	284.65M	8.07	20.89%	―	-7.03%	397.79%
WAB	74 Outperform	32.88B	28.70	10.67%	0.49%	3.38%	17.21%
GBX	69 Neutral	1.40B	6.36	15.22%	2.73%	0.71%	84.57%
CXW	66 Neutral	2.31B	22.54	7.04%	―	1.62%	55.45%
TRN	64 Neutral	$2.25B	24.56	10.47%	4.24%	-22.95%	-40.67%
RAIL	44 Neutral	181.52M	-11.01	12.34%	―	-6.00%	-12.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Trinity Industries Corporate Events

Trinity Industries Reports Q2 2025 Earnings and Orders

Trinity Industries reported its second quarter 2025 results, highlighting a quarterly earnings per share of $0.19 and a year-to-date operating cash flow of $142 million. The company received orders for 2,310 railcars and delivered 1,815, with a backlog of $2.0 billion. Despite lower revenues compared to the previous year, Trinity’s leasing business showed robust performance with a lease fleet utilization of 96.8% and a positive future lease rate differential of 18.3%. The company maintained its full-year EPS guidance, reflecting expectations of improved deliveries and continued business improvement.

The most recent analyst rating on (TRN) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Trinity Industries stock, see the TRN Stock Forecast page.