Trinity Industries, Inc. provides various products and services for the energy, transportation, chemical, and construction sectors in the United States and internationally. Its Rail Group segment offers railcars, including autorack, box, covered hopper, gondola, intermodal, tank, and open hopper cars; and couplers, axles, and other equipment, as well as railcar maintenance services. The company was founded in 1933 and is based in Dallas, Texas.
TRN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TRN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Trinity Industries Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Trinity Industries Inc, consider:
The company's compound free cash flow growth rate over the past 5.51 years comes in at -0.28%; that's greater than merely 6.62% of US stocks we're applying DCF forecasting to.
34% of the company's capital comes from equity, which is greater than merely 16.97% of stocks in our cash flow based forecasting set.
As a business, Trinity Industries Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MWA, ROAD, SRCL, TRI, and AAWW can be thought of as valuation peers to TRN, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Looking into the current session, Trinity Industries Inc. (NYSE: TRN) is trading at $21.19, after a 3.81% drop. Over the past month, the stock decreased by 0.14%, but over the past year, it actually increased by 4.74%. With questionable short-term performance like this, and great long-term performance, long-term shareholders might want to start looking into the company's price-to-earnings ratio.Assuming that all other factors are held constant, this could present itself as an opportunity for shareholders trying to capitalize on the higher share price. The stock is currently below from its 52 week high by 14.00%.The P/E ratio is used by long-term shareholders to assess the company's market performance against aggregate market data, historical earnings, and the industry at large. ...
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The railroad industry is one of the major components of the transportation sector and is closely tied to the economy's growth. Railroad companies operate vast networks that transport agricultural products, packaged foods, commodities, electronics, and other goods to companies and consumers.
Arcosa, Inc. (ACA) Overview A late 2018 spin-off of Trinity Industries (TRN), the Arcosa split created two purer play companies with TRN focused on railroads, while Arcosa focuses on construction and shipping. In their short time as an independent company, ACA has achieved impressive sales growth both organically and through...