Trinity Industries Stock Fair Value Calculation – TRINITY INDUSTRIES Reports Fourth Quarter FY2022 Earnings Results on February 21, 2023.
April 1, 2023
Earnings Overview
On February 21, 2023, TRINITY INDUSTRIES ($NYSE:TRN) released its earnings report for the fourth quarter of FY2022. Total revenue was USD 31.3 million – a 76.6% decrease compared to the same quarter in the previous year. Net income was USD 591.2 million, a 25.2% rise from the same period one year prior.
Transcripts Simplified
In the fourth quarter of 2022, Trinity Industries reported GAAP EPS from continuing operations of $0.46 and adjusted EPS from continuing operations of $0.44, up $0.10 sequentially and $0.36 year-over-year. For the full year, GAAP EPS was $1.02 and adjusted EPS of $0.94, up 176% over 2021. Trinity ended the year with a future lease rate differential of 25.1%, a good predictor of future rate growth in the leasing segment, and introducing 2023 EPS guidance of $1.50 to $1.70, representing 70% growth over 2022.
The company also completed its acquisition of Holden America in the fourth quarter. Railcar load volumes were even with 2021 and the number of railcars in storage rose but remained below the five-year average.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trinity Industries. More…
| Total Revenues | Net Income | Net Margin |
| 1.98k | 60.1 | -1.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trinity Industries. More…
| Operations | Investing | Financing |
| -12.8 | -260.7 | 265.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trinity Industries. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.72k | 7.45k | 12.48 |
Key Ratios Snapshot
Some of the financial key ratios for Trinity Industries are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -13.0% | -21.5% | 16.9% |
| FCF Margin | ROE | ROA |
| -49.5% | 20.7% | 2.4% |
Share Price
The stock opened at $27.4, but closed at $26.1, a drop of 8.1% from its last closing price of $28.4. This marked a significant decrease in the stock’s value and is likely to have an impact on its overall performance for the fiscal year. The company has also seen a decrease in its debt load, which has helped to improve its financial position. Overall, the company’s financial performance for the fourth quarter of FY2022 was mostly positive, despite the significant decrease in its stock price. TRINITY INDUSTRIES is confident that its cost-saving measures, as well as its improved financial position, will help it to remain competitive and profitable in the long term. Live Quote…
Analysis – Trinity Industries Stock Fair Value Calculation
GoodWhale has analyzed the fundamentals of TRINITY INDUSTRIES and concluded that the intrinsic value of its share is around $33.0. Our proprietary Valuation Line has generated this figure, and it is based on a range of financial metrics. The current price for TRINITY INDUSTRIES shares is $26.1, which represents a 21.0% discount to the intrinsic value. This suggests that now may be a good time to invest in TRINITY INDUSTRIES as the market is currently undervaluing the stock. More…
Peers
Trinity Industries Inc, a leading provider of transportation products and services, competes with FreightCar America Inc, Seaco Ltd, and GATX Corp. All four companies provide a variety of transportation products and services including railcars, barges, and ships. Trinity Industries Inc has a long history dating back to its founding in 1933. The company has a strong reputation for quality products and services.
– FreightCar America Inc ($NASDAQ:RAIL)
FreightCar America Inc. is a publicly traded company with a market capitalization of $73.48 million as of 2022. The company is involved in the design and manufacture of railcars for the transportation of freight. The company has a negative return on equity of 42.6%.
– Seaco Ltd ($OTCPK:SEAOF)
GATX Corporation is an American railcar leasing company. The company was founded in 1898 and is headquartered in Chicago, Illinois. As of 2018, GATX had a fleet of over 100,000 railcars and owned or managed nearly 200,000 more. The company operates in three segments: Rail North America, Rail International, and Portfolio Management.
Summary
Investors in TRINITY INDUSTRIES may have been disappointed with the company’s fourth quarter results for FY2022. Total revenue decreased a staggering 76.6% compared to the same period last year, while net income rose 25.2%. Despite this, the stock price dropped on the same day of the release. Investors should keep an eye on the company’s performance in upcoming quarters to gauge the success of their strategies.
Additionally, any news or developments from management may also impact the stock price. It is important for investors to be aware of all factors when considering whether or not to invest in TRINITY INDUSTRIES.
