Daily Stock Analysis: Trinity Industries Inc.

Trinity Industries Inc., known by the ticker symbol TRN, is a mid cap railroad company in the industrials business sector. This is my first report on TRN for my Viital stock portfolio I most recently reported on this company for my Vista portfolio (number 6) on August 19, 2021.

Trinity Industries Inc. sells and leases railroad products and railcar maintenance services in North America. 

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The company operates under the name TrinityRail in three main segments: (1) railcar leasing and management services, which owns railcars and provides fleet management and administration services; (2) rail products, which builds, sells, and modifies freight and tank railcars and their components; (3) all other, which sells highway products such as guardrail and other highway barriers and is due to be sold to Monomoy Capital for $375M subject to regulatory approval.

Customers include railroads, leasing companies, and shipping companies in the industries of agriculture, construction, consumer products, energy, and chemicals.

Trinity sells or leases products and services through its own sales personnel and independent sales representatives. 

Trinity Industries, Inc. was incorporated in 1933 and is headquartered in Dallas, Texas.

Three key data points gauge any dividend equity or fund such as Trinity Industries Inc. (TRN):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

TRN Price

Trinity Industries' price per share was $29.14 as of yesterday's market close. One year ago its price was $19.87. So, TRN's share price increased about 46.7% in the past year.

If TRN's stock trades in the range of $20 to $35.00 this next year, its recent $19.14 price could rise by $4.86 to reach $34.00 by November 4, 2022. My estimate is $1.00 less than the median of target price estimates from 4 analysts tracking TRN for brokerage houses.  

TRN Dividends

Trinity Industries's most recently announced quarterly dividend of  $0.21 was paid out on October 29th, to shareholders. The compounded annual payout of $0.84 yields 2.88% based on yesterday's $29.14 closing price. TRN has paid quarterly dividends increasing generally annually since September 2010: That is 11 years of increasing payouts. 

TRN Returns

Adding the $0.84 annual estimated TRN forward-looking dividend to my $4.76 price upside estimate shows a $5.60 potential gross gain, per share, to be reduced by any costs to trade TRN shares.  

At yesterday's $29.14 price per share, a little under $1000 would buy 34 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.29 per share.

Subtract that maybe $0.29 brokerage cost from my estimated $4.60 gross gain per share results in a net gain of $5.31 X 34 shares = $180.54 for an 18.55% net gain on a $990.76 investment.

So it is that Trinity Industries Inc. (TRN) shows a possible 18.55% net gain including a 2.88% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Trinity Industries Inc. (TRN) could generate $28.80 in cash dividends alone. Note that a single share bought at yesterday's closing price was $29.14! Thus, Trinity Industries Inc's share price is about $0.34 more than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is not the time to pickup TRN shares. The estimated next year's dividend from $1k invested is less than the single share price. Consider yourself alerted. It's a sign!  Wait for the price to drop to $28.80.

All of the estimates above are speculation based on the past history of Trinity Industries Inc. (TRN). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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