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Fundamentals snapshot

Trinity Industries, Inc.

TRN · NYQ · Industrials · Railroads

Current price

$25.22

52-week range

$24.76 - $38.31

Market cap

$2.01B

One-glance verdict

Undervalued

$53.47 our estimate vs market $25.22

Wall Street consensus: $33.00 (-38.3% lower than our fair-value estimate)

Balance sheet

Distressed

1.31x Concerning

Net debt $5.20B. Interest coverage shows how many times profit covers the interest bill.

What this company does

Trinity Industries, Inc.

Trinity Industries makes and leases railcars, which are the big train cars used to haul stuff like chemicals, grain, and cars across the country. The money comes mainly from selling these railcars and from leasing them out, similar to how you might rent an apartment, with the leasing part providing a more steady stream of income (called recurring revenue). Understanding how many railcars they are building and leasing helps us see if they are busy and profitable.

Price history

How the share price has moved

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Earnings history

Last 8 quarters — what happened

Click any quarter to read the call summary and what the numbers say.

Free cash flow by quarter (oldest to newest)
FY2024 Q3 $62.10M FY2024 Q4 $180.10M FY2025 Q1 $67.30M FY2025 Q2 $52.90M FY2025 Q3 $35.30M FY2025 Q4 $158.60M FY2026 Q1 $91.50M FY2026 Q2 $57.20M
Revenue $485.10M
Net income $98.30M
Diluted EPS 1.20
Operating cash flow $68.90M
Free cash flow $57.20M
Revenue $492.00M
Net income $24.20M
Diluted EPS 0.30
Operating cash flow $97.80M
Free cash flow $91.50M
Revenue $611.20M
Net income $186.60M
Diluted EPS 2.28
Operating cash flow $177.40M
Free cash flow $158.60M
Revenue $454.10M
Net income $30.30M
Diluted EPS 0.37
Operating cash flow $44.20M
Free cash flow $35.30M
Revenue $506.20M
Net income $14.10M
Diluted EPS 0.17
Operating cash flow $61.60M
Free cash flow $52.90M
Revenue $585.40M
Net income $22.10M
Diluted EPS 0.26
Operating cash flow $76.50M
Free cash flow $67.30M
Revenue $629.40M
Net income $28.90M
Diluted EPS 0.34
Operating cash flow $201.60M
Free cash flow $180.10M
Revenue $798.80M
Net income $31.40M
Diluted EPS 0.37
Operating cash flow $78.50M
Free cash flow $62.10M

Is it cheap or expensive?

Fair value $53.47 vs current price $25.22

Wall Street consensus is the average analyst price target: $33.00 (-38.3% lower than our fair-value estimate).

Our most-likely fair value is $53.47 a share — about 112.0% above today's price of $25.22, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 7.0% · Discount 9.7% · Terminal 2.5%

$53.47

Bear

Growth 3.0% · Discount 9.7% · Terminal 2.5%

$29.87

Bull

Growth 12.0% · Discount 9.7% · Terminal 2.5%

$90.82

Is it drowning in debt?

Distressed

Net debt $5.2B. Interest coverage 1.3x.

Net debt $5.20B
Interest coverage 1.31x

Trinity Industries, Inc.'s profit covers its interest bill about 1.3 times over. which is weaker than most peers shown here.

Distressed
Worse cushion Baseline Better cushion
TRN BASELINE Trinity Industries, Inc.

Total debt $5.37B Interest coverage 1.31x This is the baseline the peer rows are being compared against.

1.31x
GATX GATX Corporation

Total debt $12.48B Interest coverage 1.36x +4% vs TRN Has roughly the same debt cushion as TRN.

1.36x +4% vs TRN
GBX The Greenbrier Companies, Inc.

Total debt $1.88B Interest coverage 4.34x +232% vs TRN Carries about 3.3x more debt cushion than TRN.

4.34x +232% vs TRN
OSK Oshkosh Corporation

Total debt $1.10B Interest coverage 8.04x +515% vs TRN Carries about 6.1x more debt cushion than TRN.

8.04x +515% vs TRN
FSS Federal Signal Corporation

Total debt $485.80M Interest coverage 25.31x +1,837% vs TRN Carries about 19.4x more debt cushion than TRN.

25.31x +1,837% vs TRN
TEX Terex Corporation

Total debt $2.69B Interest coverage 2.68x +105% vs TRN Carries about 2.1x more debt cushion than TRN.

2.68x +105% vs TRN

What you should know

The case for and against TRN

3 Rewards 2 Risks

Rewards

  • Returns 30.2% on equity, ahead of 83% of its peers.
  • Free cash flow was positive in 9/10 years.
  • Trades at 5.9x P/E vs peer median 16.4x (63.9% cheaper).

Risks

  • Forward P/E (11.3x) is higher than trailing (5.9x) - earnings are expected to drop.
  • Insider ownership is only 1.2% (peer median: 1.7%).

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
5.92x
Forward P/E
11.33x
P/B
1.76x
P/S
0.98x
EV/EBITDA
11.66x
PEG ratio
0.69x

Profitability

How much profit each dollar creates

Gross margin
26.2%
Operating margin
12.1%
Net margin
16.6%
ROE
30.2%
ROA
2.3%

Health

Liquidity and balance-sheet strength

Debt / equity
4.68x
Current ratio
2.17x
Quick ratio
0.96x
Total debt
$5.37B
Total cash
$169.00M

Growth

How the business has been compounding

Revenue TTM
$2.04B
Revenue 5Y CAGR
9.2%
EPS TTM
4.26
EPS 5Y CAGR
62.6%

Cash flow

How much cash the business throws off

Operating CF TTM
$388.30M
Free CF TTM
$314.10M
FCF margin
15.4%

Dividend

Shareholder payout

Yield
4.9%
Payout ratio
28.6%
Last ex-div date
2026-10-15