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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#976
Positioning
Market Dominance
Manufacturing
Shipbuilding, Railroad Equipment
$2.2B
E. Jean Savage
Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2021, it had a fleet of 106,970 owned or leased railcars.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TRN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$TRN TRINITY INDUSTRIES INC | 57 | 49 | 68 | 48 | 23.6x | 6.4x | 10.4% | 1.4% | 25.8% | 19.3% | 5.2% | -46.0% | 4.3% | 636.0x | $2.2B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
TRINITY INDUSTRIES INC (TRN) receives a "Hold" rating with a composite score of 57.4/100. It ranks #976 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TRN.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 49 | 42 | +7ALPHA |
| MOMENTUM | 48 | 42 | +6ALPHA |
| VALUATION | 68 | 68 | 0NEUTRAL |
| INVESTMENT | 45 | 85 | -40DRAG |
| STABILITY | 73 | 75 | -2NEUTRAL |
| SHORT INT | 73 | 83 | -10DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 9.3% vs WACC 3.8% (spread +5.5%)
GM 26% vs sector 44%, OM 19% vs sector 3%
Capital turnover 0.37x
Rev growth -46%, 9yr history
Interest coverage 9.3x, Net debt/EBITDA 9.1x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate TRINITY INDUSTRIES INC (TRN) as a Hold with a composite score of 57.4/100 at a current price of $35.17. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
TRINITY INDUSTRIES INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 57.4/100 places it at rank #976 in our full universe.
No Moat
High
Poor
Undervalued
Value factor score of 68 suggests attractive pricing.
Stable competitive position in a defensive sector.
Leverage of 636% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
TRINITY INDUSTRIES INC represents a hold based on multi-factor quantitative performance.
Our model assigns TRINITY INDUSTRIES INC a Hold rating, with a composite score of 57.4/100 and 3 out of 5 stars. Ranked #976 of 7,333 stocks, TRN presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 49/100, TRN shows adequate but unremarkable business quality. The company reports a return on equity of 10.4% (sector avg: -1.9%), gross margins of 25.8% (sector avg: 44.1%), net margins of 5.2% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
TRN's value score of 68/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 23.64x, an EV/EBITDA of 6.43x, a P/B ratio of 2.45x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 45/100, TRN exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -46.0% vs. a sector average of 6.7% and a return on assets of 1.4% (sector: 0.9%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
TRN is currently showing below-average momentum at 48/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at -46.0% year-over-year, while a beta of 0.89 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
TRN shows good financial stability with a score of 73/100. Key stability metrics include a beta of 0.89 and a debt-to-equity ratio of 636.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
TRN carries a short interest score of 73/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 636.00x). At $2.2B market cap (mid-cap), TRINITY INDUSTRIES INC offers reasonable institutional liquidity.
TRINITY INDUSTRIES INC offers an attractive dividend yield of 4.3%, placing it among the higher-yielding stocks in its peer group. A yield this high can provide meaningful income, but investors should verify the payout is sustainable by examining the payout ratio, free cash flow coverage, and any history of dividend cuts.
TRINITY INDUSTRIES INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #976 of 7,333 overall (87th percentile). Key comparisons include ROE of 10.4% exceeding the -1.9% sector median and operating margins of 19.3% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While TRN currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Investment (45) is the limiting factor — improvement here would lift the composite score most.
EV/EBITDA 44% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 645% BELOW SECTOR MEDIAN
Gross Margin 42% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Trinity Industries (TRN) is back in focus after its latest quarterly results and 2026 earnings outlook, which highlighted higher net income and earnings per share along with lower sales compared with the prior year. See our latest analysis for Trinity Industries. At a share price of $34.60, Trinity Industries has given investors a 28.0% 1 month share price return and 31.2% 3 month share price return. Its 1 year total shareholder return of 19.4% points to momentum that has been building rather...

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Trinity Industries reported Q2 2025 earnings of $0.19 per share, missing analyst estimates, with revenue declining 39.8% year-over-year. While the Railcar Leasing segment showed resilience, the Rail Products Group experienced steep declines in new car deliveries and profitability.

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