Trinity Industries, Inc. (TRN) 10-Year Financial Performance & Capital Metrics

TRN • • Industrial / General

IndustrialsRailroadsRailcar ManufacturingFreight Railcar Manufacturers

AboutTrinity 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.Show more

Revenue $3.08B +3.2%
EBITDA $785M +10.6%
Net Income $138M +30.6%
EPS (Diluted) 1.64 +29.1%
Gross Margin 21.7% +22.8%
EBITDA Margin 25.5% +7.1%
Operating Margin 15.96% +14.2%
Net Margin 4.49% +26.5%
ROE 10.72% +28.7%
ROIC 5.4% +17.5%
Debt/Equity 4.44 -3.6%
Interest Coverage 1.80 +14.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓14 consecutive years of dividend growth
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 4.0%

✗Weaknesses

✗High debt to equity ratio of 4.4x
✗Negative free cash flow

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-6.71%

5Y2.27%

3Y26.64%

TTM-33.03%

Profit (Net Income) CAGR

10Y-14.69%

5Y0.12%

3Y-8.72%

TTM-44.63%

EPS CAGR

10Y-8.95%

5Y8.92%

3Y62.81%

TTM-74.75%

ROCE

10Y Avg5.99%

5Y Avg3.52%

3Y Avg5.41%

Latest6.55%

Peer Comparison

Freight Railcar Manufacturers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TRNTrinity Industries, Inc.	2.24B	27.95	17.04	3.21%	4.39%	7.63%		4.44
GBXThe Greenbrier Companies, Inc.	1.49B	48.40	7.62	-8.66%	6.04%	10.67%		1.06
RAILFreightCar America, Inc.	218.84M	11.47	-3.68	56.22%	17.4%		18.24%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	6.39B	4.59B	3.66B	2.51B	2.75B	1.75B	1.52B	1.98B	2.98B	3.08B
Revenue Growth %	0.04%	-0.28%	-0.2%	-0.31%	0.1%	-0.36%	-0.13%	0.3%	0.51%	0.03%
Cost of Goods Sold+	4.66B	3.46B	2.75B	1.94B	2.18B	1.33B	1.16B	1.61B	2.46B	2.41B
COGS % of Revenue	0.73%	0.75%	0.75%	0.77%	0.79%	0.76%	0.77%	0.81%	0.82%	0.78%
Gross Profit+	1.74B	1.13B	917.3M	570.3M	574M	422.3M	354.5M	367.7M	527.1M	668.2M
Gross Margin %	0.27%	0.25%	0.25%	0.23%	0.21%	0.24%	0.23%	0.19%	0.18%	0.22%
Gross Profit Growth %	0.12%	-0.35%	-0.19%	-0.38%	0.01%	-0.26%	-0.16%	0.04%	0.43%	0.27%
Operating Expenses+	476.4M	407.4M	454.8M	296.6M	177.2M	576.9M	97.7M	33.7M	110.1M	176.7M
OpEx % of Revenue	0.07%	0.09%	0.12%	0.12%	0.06%	0.33%	0.06%	0.02%	0.04%	0.06%
Selling, General & Admin	476.4M	407.4M	454.8M	296.6M	217M	341.1M	179M	185.4M	201.9M	235.7M
SG&A % of Revenue	0.07%	0.09%	0.12%	0.12%	0.08%	0.19%	0.12%	0.09%	0.07%	0.08%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	1.1M	-3.7M	0	-39.8M	235.8M	-81.3M	-151.7M	-91.8M	-59M
Operating Income+	1.44B	742.2M	549.1M	315.1M	396.8M	-154.6M	256.8M	334M	417M	491.5M
Operating Margin %	0.23%	0.16%	0.15%	0.13%	0.14%	-0.09%	0.17%	0.17%	0.14%	0.16%
Operating Income Growth %	0.15%	-0.48%	-0.26%	-0.43%	0.26%	-1.39%	2.66%	0.3%	0.25%	0.18%
EBITDA+	1.71B	1.03B	778.8M	567M	673.3M	103.9M	522.5M	610.4M	710.2M	785.3M
EBITDA Margin %	0.27%	0.22%	0.21%	0.23%	0.24%	0.06%	0.34%	0.31%	0.24%	0.26%
EBITDA Growth %	0.14%	-0.4%	-0.24%	-0.27%	0.19%	-0.85%	4.03%	0.17%	0.16%	0.11%
D&A (Non-Cash Add-back)	266.4M	283M	229.7M	251.9M	276.5M	258.5M	265.7M	276.4M	293.2M	293.8M
EBIT	1.45B	743.4M	379.4M	330.9M	395.7M	-313.6M	246.6M	335.6M	414.5M	495.3M
Net Interest Income+	-192.5M	-176.6M	-173.6M	-167.4M	-214.5M	-212.8M	-191.4M	-209.1M	-265.5M	-273.5M
Interest Income	2.2M	5.4M	10.6M	11.9M	7.3M	3.2M	0	0	0	0
Interest Expense	194.7M	181.9M	184M	179.3M	221.8M	216M	191.4M	209.1M	265.5M	273.5M
Other Income/Expense	-186.9M	-175.4M	-172.9M	-163.5M	-215.6M	-370M	-201.6M	-207.5M	-268M	-269.7M
Pretax Income+	1.25B	566.8M	372M	151.6M	181.2M	-524.6M	55.2M	126.5M	149M	221.8M
Pretax Margin %	0.2%	0.12%	0.1%	0.06%	0.07%	-0.3%	0.04%	0.06%	0.05%	0.07%
Income Tax+	426M	202.1M	-341.6M	42.6M	58.8M	-274.1M	15.9M	27.6M	9M	50.4M
Effective Tax Rate %	0.64%	0.61%	1.89%	1.05%	0.76%	0.28%	3.3%	0.48%	0.71%	0.62%
Net Income+	796.5M	343.6M	702.5M	159.3M	137.6M	-147.3M	182M	60.1M	106M	138.4M
Net Margin %	0.12%	0.07%	0.19%	0.06%	0.05%	-0.08%	0.12%	0.03%	0.04%	0.04%
Net Income Growth %	0.17%	-0.57%	1.04%	-0.77%	-0.14%	-2.07%	2.24%	-0.67%	0.76%	0.31%
Net Income (Continuing)	826M	203.2M	610.2M	109M	122.4M	-250.5M	39.3M	98.9M	140M	171.4M
Discontinued Operations	0	161.5M	103.4M	54.1M	13.7M	24.3M	142.5M	-26M	-13.4M	-14.3M
Minority Interest	394.8M	392.6M	356.9M	351.2M	348.8M	277.2M	267M	257.2M	238.4M	248.3M
EPS (Diluted)+	5.08	2.25	4.52	1.09	1.07	-1.95	0.38	1.17	1.27	1.64
EPS Growth %	0.21%	-0.56%	1.01%	-0.76%	-0.02%	-2.82%	1.19%	2.08%	0.09%	0.29%
EPS (Basic)	5.14	2.25	4.62	1.11	1.08	-1.95	0.39	1.21	1.31	1.69
Diluted Shares Outstanding	152.2M	148.6M	152M	146.4M	127.3M	115.9M	103.8M	84.2M	83.4M	84.2M
Basic Shares Outstanding	150.2M	148.4M	148.6M	144M	125.6M	115.9M	101.5M	81.9M	81.2M	81.9M
Dividend Payout Ratio	0.08%	0.19%	0.1%	0.49%	0.6%	-	0.49%	1.28%	0.81%	0.67%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	2.47B	2.12B	2.33B	1.19B	985.8M	1.12B	968.3M	1.25B	1.29B	1.23B
Cash & Short-Term Investments	870.9M	798.1M	1.1B	179.2M	277.6M	228.4M	302.4M	294.3M	235.1M	374.4M
Cash Only	786M	563.4M	778.6M	179.2M	277.6M	228.4M	302.4M	294.3M	235.1M	374.4M
Short-Term Investments	84.9M	234.7M	319.5M	0	0	0	0	0	0	0
Accounts Receivable	464.8M	480.8M	204.4M	317M	274.8M	610.2M	233M	331.3M	368.7M	381.5M
Days Sales Outstanding	26.54	38.25	20.37	46.11	36.44	127.29	56.1	61.16	45.11	45.22
Inventory	943.1M	665.8M	640.6M	524.7M	433.4M	285.2M	432.9M	629.4M	684.3M	476.2M
Days Inventory Outstanding	73.93	70.32	85.16	98.78	72.62	78.42	136.04	142.73	101.69	72.09
Other Current Assets	195.8M	178.2M	1.87B	171.6M	0	0	0	0	0	0
Total Non-Current Assets+	6.41B	7B	7.21B	6.8B	7.72B	7.58B	7.27B	7.47B	7.62B	7.6B
Property, Plant & Equipment	5.35B	5.97B	6.13B	6.33B	7.15B	7.04B	6.93B	6.98B	7.11B	7.09B
Fixed Asset Turnover	1.20x	0.77x	0.60x	0.40x	0.38x	0.25x	0.22x	0.28x	0.42x	0.43x
Goodwill	753.8M	754.1M	780.3M	208.8M	208.8M	147.2M	154.2M	195.9M	221.5M	221.5M
Intangible Assets	0	0	0	0	18.7M	0	0	0	0	99M
Long-Term Investments	-752.2M	-1.07B	-743.2M	-743.1M	1.2M	4.8M	6.3M	63.5M	45.7M	55.3M
Other Non-Current Assets	309.5M	281.5M	295.6M	253.5M	332.1M	383.7M	177.4M	230M	245.8M	139.2M
Total Assets+	8.89B	9.13B	9.54B	7.99B	8.7B	8.7B	8.24B	8.72B	8.91B	8.83B
Asset Turnover	0.72x	0.50x	0.38x	0.31x	0.32x	0.20x	0.18x	0.23x	0.33x	0.35x
Asset Growth %	0.02%	0.03%	0.05%	-0.16%	0.09%	0%	-0.05%	0.06%	0.02%	-0.01%
Total Current Liabilities+	746.4M	582.2M	615.4M	580.4M	546M	456.1M	745.2M	790.6M	1.28B	1.44B
Accounts Payable	216.8M	156.1M	119.5M	212.1M	203.9M	146.1M	206.4M	287.5M	305.3M	251.7M
Days Payables Outstanding	17	16.49	15.89	39.93	34.16	40.17	64.86	65.19	45.37	38.1
Short-Term Debt	0	119.1M	0	0	0	0	231.4M	242.1M	673.2M	840.1M
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	0	0	0	0	0	0
Other Current Liabilities	0	-119.1M	174M	0	342.1M	310M	307.4M	261M	291.2M	322.4M
Current Ratio	3.32x	3.65x	3.79x	2.05x	1.81x	2.46x	1.30x	1.59x	1.01x	0.85x
Quick Ratio	2.05x	2.50x	2.75x	1.15x	1.01x	1.84x	0.72x	0.79x	0.47x	0.52x
Cash Conversion Cycle	83.47	92.08	89.65	104.96	74.9	165.54	127.28	138.69	101.43	79.21
Total Non-Current Liabilities+	4.09B	4.23B	4.07B	4.85B	5.78B	6.23B	6.19B	6.66B	6.35B	6.08B
Long-Term Debt	3.04B	2.91B	3.24B	4.03B	4.88B	5.02B	4.94B	5.37B	5.08B	4.85B
Capital Lease Obligations	35.8M	28.4M	28.3M	0	44.8M	93.5M	106.3M	114.8M	118.2M	113.4M
Deferred Tax Liabilities	752.2M	1.07B	743.2M	743.1M	798.3M	1.05B	1.11B	1.13B	1.1B	1.08B
Other Non-Current Liabilities	234M	198.1M	50.3M	56.8M	51.5M	71.7M	41.6M	49.1M	47.5M	40.4M
Total Liabilities	4.84B	4.81B	4.69B	5.43B	6.32B	6.69B	6.94B	7.45B	7.63B	7.53B
Total Debt+	3.2B	3.06B	3.24B	4.03B	4.93B	5.11B	5.28B	5.72B	5.87B	5.8B
Net Debt	2.41B	2.49B	2.46B	3.85B	4.65B	4.88B	4.97B	5.43B	5.64B	5.43B
Debt / Equity	0.72x	0.71x	0.67x	1.57x	2.07x	2.53x	4.07x	4.51x	4.60x	4.44x
Debt / EBITDA	1.87x	2.98x	4.16x	7.11x	7.32x	49.19x	10.10x	9.37x	8.27x	7.39x
Net Debt / EBITDA	1.41x	2.43x	3.16x	6.79x	6.90x	46.99x	9.52x	8.89x	7.94x	6.91x
Interest Coverage	7.39x	4.08x	2.98x	1.76x	1.79x	-0.72x	1.34x	1.60x	1.57x	1.80x
Total Equity+	4.44B	4.31B	4.86B	2.56B	2.38B	2.02B	1.3B	1.27B	1.28B	1.31B
Equity Growth %	0.17%	-0.03%	0.13%	-0.47%	-0.07%	-0.15%	-0.36%	-0.02%	0%	0.02%
Book Value per Share	29.20	29.01	31.96	17.50	18.69	17.39	12.49	15.08	15.29	15.52
Total Shareholders' Equity	4.05B	3.92B	4.5B	2.21B	2.03B	1.74B	1.03B	1.01B	1.04B	1.06B
Common Stock	1.5M	1.6M	1.6M	1.3M	1.2M	1.1M	800K	800K	800K	800K
Retained Earnings	3.22B	3.5B	4.12B	2.33B	2.18B	1.77B	1.05B	992.6M	1.01B	1.05B
Treasury Stock	-1M	-1.5M	-1.6M	-1M	-900K	-800K	-600K	-700K	-600K	-600K
Accumulated OCI	-115.4M	-113.5M	-104.8M	-116.8M	-153.1M	-30.9M	-17M	19.7M	11M	-4.2M
Minority Interest	394.8M	392.6M	356.9M	351.2M	348.8M	277.2M	267M	257.2M	238.4M	248.3M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	939.7M	1.09B	761.6M	379.1M	393.6M	651.7M	611.8M	-12.8M	295.6M	573.8M
Operating CF Margin %	0.15%	0.24%	0.21%	0.15%	0.14%	0.37%	0.4%	-0.01%	0.1%	0.19%
Operating CF Growth %	0.15%	0.16%	-0.3%	-0.5%	0.04%	0.66%	-0.06%	-1.02%	24.09%	0.94%
Net Income	826M	364.7M	713.6M	163.1M	122.4M	-250.5M	170.7M	93.2M	140M	138.4M
Depreciation & Amortization	266.4M	283M	295.4M	251.9M	276.5M	258.5M	265.7M	276.4M	293.2M	293.8M
Stock-Based Compensation	61.1M	41.3M	31.1M	29.2M	27.8M	25.4M	20.7M	22.5M	22.7M	23.6M
Deferred Taxes	116.6M	321.4M	-337.4M	57.9M	52.6M	238.5M	13.1M	14.7M	-41.5M	-22.1M
Other Non-Cash Items	-164.5M	6.7M	-56M	19.5M	-2.9M	579.1M	-194.8M	-158.6M	-98.2M	-28M
Working Capital Changes	-165.9M	73.1M	114.9M	-142.5M	-82.8M	-199.3M	336.4M	-261M	-20.6M	168.1M
Change in Receivables	-170.4M	-120.9M	101.9M	-37M	37.4M	-379.9M	-64.3M	-92M	-22M	-14.3M
Change in Inventory	128.5M	273.3M	32.6M	-122M	87.4M	106.4M	-147.7M	-193.4M	-54.9M	208.1M
Change in Payables	-78.6M	-60.7M	19.3M	92.7M	-10.4M	-50.4M	59.2M	78.4M	2.2M	-53.6M
Cash from Investing+	-511.3M	-1.02B	-472.7M	-490.5M	-993.3M	-532.9M	276.3M	-260.7M	-363M	-214.6M
Capital Expenditures	-1.03B	-933.4M	-712.7M	-985.6M	-1.21B	-698.1M	-570.8M	-966.8M	-710.1M	0
CapEx % of Revenue	0.16%	0.2%	0.19%	0.39%	0.44%	0.4%	0.38%	0.49%	0.24%	0.19%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	513.4M	-89.3M	287.5M	495.1M	216.9M	165.2M	863.7M	802M	409.3M	-587M
Cash from Financing+	-530.3M	-290.1M	-73.7M	-511.6M	526.5M	-168M	-814.1M	265.4M	8.2M	-219.9M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-64.9M	-66.7M	-72.6M	-77.4M	-82.1M	-91.7M	-88.5M	-76.9M	-86M	-93.2M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	21.6M	-28M	-48.5M	-234.7M	-2.2M	6M	-11.2M	-22.3M	-32.4M	-16.9M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	-90.1M	156.8M	48.9M	-606.5M	-816.6M	-46.4M	41M	-979.6M	-414.5M	-21.9M
FCF Margin %	-0.01%	0.03%	0.01%	-0.24%	-0.3%	-0.03%	0.03%	-0.5%	-0.14%	-0.01%
FCF Growth %	-1.25%	2.74%	-0.69%	-13.4%	-0.35%	0.94%	1.88%	-24.89%	0.58%	0.95%
FCF per Share	-0.59	1.06	0.32	-4.14	-6.41	-0.40	0.39	-11.63	-4.97	-0.26
FCF Conversion (FCF/Net Income)	1.18x	3.17x	1.08x	2.38x	2.86x	-4.42x	3.36x	-0.21x	2.79x	4.15x
Interest Paid	164.3M	0	0	158.9M	208.1M	205.5M	0	190.5M	246.2M	271.4M
Taxes Paid	326.8M	0	0	4.1M	0	0	0	19.3M	42.4M	54.6M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	19.33%	7.85%	15.32%	4.29%	5.57%	-6.7%	10.99%	4.68%	8.33%	10.72%
Return on Invested Capital (ROIC)	16.21%	8.15%	5.83%	3.44%	4.43%	-1.67%	2.93%	3.86%	4.6%	5.4%
Gross Margin	27.16%	24.68%	25.04%	22.73%	20.85%	24.14%	23.38%	18.6%	17.67%	21.7%
Net Margin	12.46%	7.49%	19.18%	6.35%	5%	-8.42%	12.01%	3.04%	3.55%	4.49%
Debt / Equity	0.72x	0.71x	0.67x	1.57x	2.07x	2.53x	4.07x	4.51x	4.60x	4.44x
Interest Coverage	7.39x	4.08x	2.98x	1.76x	1.79x	-0.72x	1.34x	1.60x	1.57x	1.80x
FCF Conversion	1.18x	3.17x	1.08x	2.38x	2.86x	-4.42x	3.36x	-0.21x	2.79x	4.15x
Revenue Growth	3.61%	-28.23%	-20.17%	-31.5%	9.7%	-36.43%	-13.36%	30.43%	50.88%	3.21%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Manufacturing	5.3B	3.76B	2.82B	1.67B	1.89B	1.2B	781.4M	1.21B	2.11B	1.94B
Manufacturing Growth	-	-29.01%	-25.05%	-40.90%	13.30%	-36.59%	-34.76%	54.53%	75.01%	-8.28%
Leasing	1.09B	824.9M	842.2M	842M	1.12B	801.7M	734.6M	769.8M	870M	-
Leasing Growth	-	-24.43%	2.10%	-0.02%	32.58%	-28.18%	-8.37%	4.79%	13.02%	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
MEXICO	336.6M	317.9M	263.1M	-	-	-	-	-	-	-
MEXICO Growth	-	-5.56%	-17.24%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Trinity Industries, Inc. (TRN) has a price-to-earnings (P/E) ratio of 17.0x. This is roughly in line with market averages.

Growth & Financials

Trinity Industries, Inc. (TRN) reported $2.18B in revenue for fiscal year 2024. This represents a 29% decrease from $3.08B in 2011.

Trinity Industries, Inc. (TRN) grew revenue by 3.2% over the past year. Growth has been modest.

Yes, Trinity Industries, Inc. (TRN) is profitable, generating $95.4M in net income for fiscal year 2024 (4.5% net margin).

Dividend & Returns

Yes, Trinity Industries, Inc. (TRN) pays a dividend with a yield of 3.96%. This makes it attractive for income-focused investors.

Trinity Industries, Inc. (TRN) has a return on equity (ROE) of 10.7%. This is reasonable for most industries.

Trinity Industries, Inc. (TRN) had negative free cash flow of $396.4M in fiscal year 2024, likely due to heavy capital investments.

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