📊 TRN Key Takeaways
Is Trinity Industries Inc. (TRN) a Good Investment?
Trinity Industries operates a fundamentally sound railroad equipment business with strong operating margins (20.5%) and positive free cash flow, but carries an unsustainable debt burden (5.07x Debt/Equity, $5.5B against $1.1B equity) with dangerously weak interest coverage (2.0x). The collapsing returns on equity (2.2%) and declining net income reflect that profits are increasingly consumed by debt service rather than generating shareholder value.
Why Buy Trinity Industries Inc. Stock? TRN Key Strengths
- Strong operating margin of 20.5% demonstrates pricing power and operational efficiency in railroad equipment manufacturing
- Positive free cash flow generation of $91.5M with 18.6% FCF margin shows the core business produces cash despite leverage
- Operating cash flow of $97.8M relative to net income indicates quality earnings and reasonable working capital management
TRN Stock Risks: Trinity Industries Inc. Investment Risks
- Critically high leverage ratio of 5.07x Debt/Equity with $5.5B debt against only $1.1B equity creates significant financial distress risk
- Weak interest coverage ratio of 2.0x provides minimal cushion for economic downturns, rising rates, or operational deterioration
- Cyclical industry exposure: railroad equipment demand is highly sensitive to economic conditions and capital spending cycles
- Collapsing returns on equity (2.2%) and assets (0.3%) show capital is being inefficiently deployed to service debt rather than create value
- Net income declined 8.7% YoY while 86% EPS growth came from share buybacks, masking underlying operational weakness
Key Metrics to Watch
- Debt-to-Equity ratio trend and absolute debt reduction progress
- Interest Coverage ratio movement above 2.5x threshold for stability
- Operating cash flow sustainability and free cash flow quality
- Net income organic growth (adjusting for share buyback impact on EPS)
Trinity Industries Inc. (TRN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TRN Profit Margin, ROE & Profitability Analysis
TRN vs Industrial Sector: How Trinity Industries Inc. Compares
How Trinity Industries Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Trinity Industries Inc. Stock Overvalued? TRN Valuation Analysis 2026
Based on fundamental analysis, Trinity Industries Inc. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Trinity Industries Inc. Balance Sheet: TRN Debt, Cash & Liquidity
TRN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Trinity Industries Inc.'s revenue has grown significantly by 12% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.27 reflects profitable operations.
TRN Revenue Growth, EPS Growth & YoY Performance
TRN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $492.0M | $22.1M | $0.26 |
| Q3 2025 | $454.1M | $30.3M | $0.37 |
| Q2 2025 | $506.2M | $14.1M | $0.17 |
| Q1 2025 | $585.4M | $22.1M | $0.26 |
| Q3 2024 | $798.8M | $21.8M | $0.26 |
| Q2 2024 | $722.4M | $17.0M | $0.20 |
| Q1 2024 | $641.7M | $4.4M | $0.05 |
| Q3 2023 | $496.6M | $21.8M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Trinity Industries Inc. Dividends, Buybacks & Capital Allocation
TRN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Trinity Industries Inc. (CIK: 0000099780)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TRN
What is the AI rating for TRN?
Trinity Industries Inc. (TRN) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TRN's key strengths?
Claude: Strong operating margin of 20.5% demonstrates pricing power and operational efficiency in railroad equipment manufacturing. Positive free cash flow generation of $91.5M with 18.6% FCF margin shows the core business produces cash despite leverage.
What are the risks of investing in TRN?
Claude: Critically high leverage ratio of 5.07x Debt/Equity with $5.5B debt against only $1.1B equity creates significant financial distress risk. Weak interest coverage ratio of 2.0x provides minimal cushion for economic downturns, rising rates, or operational deterioration.
What is TRN's revenue and growth?
Trinity Industries Inc. reported revenue of $492.0M.
Does TRN pay dividends?
Trinity Industries Inc. pays dividends, with $24.8M distributed to shareholders in the trailing twelve months.
Where can I find TRN SEC filings?
Official SEC filings for Trinity Industries Inc. (CIK: 0000099780) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TRN's EPS?
Trinity Industries Inc. has a diluted EPS of $0.30.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TRN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Trinity Industries Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TRN stock overvalued or undervalued?
Valuation metrics for TRN: ROE of 2.2% (sector avg: 15%), net margin of 4.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy TRN stock in 2026?
Our dual AI analysis gives Trinity Industries Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TRN's free cash flow?
Trinity Industries Inc.'s operating cash flow is $97.8M, with capital expenditures of $6.3M. FCF margin is 18.6%.
How does TRN compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 4.9% (avg: 10%), ROE 2.2% (avg: 15%), current ratio N/A (avg: 1.8).
Is Trinity Industries Inc. carrying too much debt?
TRN has a debt-to-equity ratio of 5.07x, which is above the Industrial sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.