Trimas Corporation Intrinsic Value – TRIMAS CORPORATION’s Fourth-Quarter Earnings Fall 40% Due to Weak Specialty Products and High Costs
March 31, 2024
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TRIMAS ($NASDAQ:TRS): TriMas Corporation is a manufacturing company that specializes in engineered and applied products for various industries such as aerospace, packaging, and specialty products. It has a global presence with operations in North America, Europe, and Asia. In the company’s recent fourth-quarter earnings report, it was announced that there was a 40% decrease in profits compared to the same period in the previous year. The decline was largely attributed to the weak performance of the Specialty Products segment and an increase in operating costs. The Specialty Products segment includes businesses that manufacture and supply products for the automotive, energy, and industrial markets. Despite the efforts to improve performance in this segment, it was not able to meet expectations, resulting in a significant decrease in profits. This could be attributed to various factors such as a slowdown in demand or increased competition. On the other hand, the Packaging and Aerospace segments showed positive results, which helped to partially offset the decline in profits. The Aerospace segment, which provides products for commercial and military aircraft, saw an increase in demand and sales, contributing to the overall revenue of the company. The Packaging segment, which specializes in dispensers and closure systems for consumer products, also showed growth due to higher sales volumes.
However, despite the positive results in these segments, high costs have affected the company’s overall performance. In addition to higher operating costs, TriMas Corporation has also faced challenges related to material costs and supply chain disruptions. These factors have put pressure on the company’s profitability and will require careful management and cost controls going forward. In conclusion, TriMas Corporation’s recent fourth-quarter earnings report highlights the challenges faced by the company in its Specialty Products segment and the impact of high costs on its overall performance. As the company continues to navigate through these challenges, investors may want to closely monitor its strategies for improving performance and managing costs in the coming quarters.
Analysis – Trimas Corporation Intrinsic Value
As an analyst at GoodWhale, I have thoroughly examined the financials of TRIMAS CORPORATION and have found some key points worth noting. First and foremost, our analysis suggests that the fair value of a single share of TRIMAS CORPORATION is around $31.6. This estimation has been calculated using our own proprietary Valuation Line, taking into account various financial metrics such as revenue, earnings, and growth potential. Currently, TRIMAS CORPORATION stock is being traded at $26.0, which indicates that it is undervalued by 17.8%. This means that investors have an opportunity to purchase the stock at a lower price than its fair value, potentially leading to a profitable return on investment. From our analysis, it can also be observed that TRIMAS CORPORATION has been performing well financially. Its revenue and earnings have shown consistent growth over the past few years, indicating a strong and stable financial foundation for the company. However, as with any investment, it is important for investors to conduct their own research and assess their risk tolerance before making any investment decisions. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trimas Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 893.55 | 40.36 | 4.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trimas Corporation. More…
| Operations | Investing | Financing |
| 88.16 | -134.42 | -30.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trimas Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.34k | 658.71 | 16.49 |
Key Ratios Snapshot
Some of the financial key ratios for Trimas Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.1% | 11.9% | 7.4% |
| FCF Margin | ROE | ROA |
| 3.8% | 6.1% | 3.1% |
Peers
The company competes with other companies in the same industry, such as Altra Industrial Motion Corp, Cummins Inc, and EnPro Industries Inc.
– Altra Industrial Motion Corp ($NASDAQ:AIMC)
Altra Industrial Motion Corp is a global designer, producer and marketer of a range of mechanical power transmission products. The company’s products are used in a variety of industries, including food and beverage, material handling, packaging, automotive, aerospace, construction, mining, oil and gas, and others. Altra Industrial Motion Corp has a market cap of 2.43B as of 2022 and a Return on Equity of 3.09%. The company’s products are used in a variety of industries, including food and beverage, material handling, packaging, automotive, aerospace, construction, mining, oil and gas, and others. Altra Industrial Motion Corp is headquartered in Braintree, Massachusetts, and has manufacturing facilities in the United States, Europe, Asia, and South America.
– Cummins Inc ($NYSE:CMI)
Cummins Inc is a company that manufactures engines and other power generation products. As of 2022, the company has a market capitalization of 31.69 billion dollars and a return on equity of 19.85%. The company has a long history dating back to 1919, and it is headquartered in Columbus, Indiana, in the United States. Cummins is a global leader in the design, manufacture, and distribution of engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions, and electrical power generation systems. The company operates in more than 190 countries and territories through a network of approximately 600 company-owned and independent distributors and 6,500 dealers.
– EnPro Industries Inc ($NYSE:NPO)
EnPro Industries Inc is a diversified industrial company with a focus on engineered products and industrial services. The company’s market cap as of 2022 is 2.01B, and its ROE is 11.96%. EnPro operates in three segments: sealing products, industrial products, and services. Sealing products includes gaskets, seals, and packing products for a variety of applications in the automotive, aerospace, and other industries. Industrial products includes bearings, power transmission products, and other products for the industrial and transportation markets. Services includes repair and replacement services for bearings, seals, and other products, as well as technical services.
Summary
TriMas Corporation reported a 40% decline in its fourth-quarter 2023 earnings due to weaknesses in its Specialty Products division and higher costs. The company’s Packaging and Aerospace segments showed improved performances compared to the previous year.
However, this was not enough to offset the overall decline in earnings. As an investor, it is important to consider these factors when analyzing TRIMAS CORPORATION’s performance. The company may need to address its weaknesses in Specialty Products and find ways to reduce costs in order to improve its profitability. It is also important to monitor the performance of its Packaging and Aerospace segments as they seem to be the main drivers of growth for the company.
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