New Report: Trinity Industries (TRN)


Photo by Nicholas Cappello on Unsplash

Trinity Industries Inc, known by the ticker symbol TRN,  is a mid-cap railroad firm, operating in the industrials business sector. This is my second report on TRN Inc for this Viital portfolio. I previously discussed this stock on November 4, 2021.

Trinity Industries Inc. sells and leases railroad products and railcar maintenance services in North America. The company operates under the name TrinityRail in three main segments: railcar leasing and management services, which owns railcars and provides fleet management and administration services; rail products, which builds, sells, and modifies freight and tank railcars and their components; and all other, which sells highway products such as guardrail and other highway barriers. Customers include railroads, leasing companies, and shipping companies in the industries of agriculture, construction, consumer products, energy, and chemicals.

It 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's price per share was $32.63 as of yesterday's market close. One year ago its price was $29.01 Therefore, TRN's share price rose $3.62 or about 12.5% in the past year. 

If TRN's stock trades in the range of $24.00 to $40.00 this next year, its recent $32.63 share price might rise by $2.37 to reach $35.00 by March 14, 2023. My $2.37 estimate is  $0.75 below the median of target price estimates from 4 analysts tracking TRN for brokerages.

TRN Dividends

Trinity Industries Inc 's most recently declared quarterly dividend of $0.23 per share was paid January 31st, to shareholders on record as of January 13th.  The TRN Annual estimated dividend payout per share of $0.92 yields 2.82% per yesterday's $32.63 closing price. 

Trinity Industries Inc has paid  quarterly dividend payouts since April 30, 2002. That stretch will mark 20 years next month.

TRN Returns

Adding the $0.92 annual Trinity Industries Inc forward-looking dividend to the estimated one-year price upside of $2.37 shows a $3.29 potential gross gain, per share, to be reduced by any costs to trade Trinity Industries Inc shares.  

At yesterday's $32.63 price per share, a little over $1000 would buy 31 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.32 per share.

Subtract that maybe $0.32 brokerage cost from my estimated $3.29 gross gain estimate per share results in a net gain of $2.97 X 31 shares = $92.07 for a 9.2% net gain on a $1,011.53 investment.

So it is that Trinity Industries Inc  (TRN) shows a possible 9.2% net gain including a 2.82% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Trinity Industries Inc could generate $28.20 in cash dividends alone. Note that a single share of TRN stock bought at yesterday's single share price of $32.63 is $4.43 greater than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now is NOT the time to buy Trinity Industries Inc shares. The estimated next-year dividend from $1K invested is $4.43 under yesterday's single share price. Consider yourself alerted. It's a sign!  Now's not the time. Wait for Trinity's price to drop to $30.00. (Note that in our November report we said to wait until it dropped below 28.80, which it consequently has done several times in the intervening months and as recently as March 1, and would have earned you an 11% gain at yesterday's price!).

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 solicitation, ...

How did you like this article? Let us know so we can better customize your reading experience.