TRNTrinity Industries, Inc.
Is the business good?
The checks split: margins widening, but thin cash backing (0.7×) and returns that lean on debt.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 22% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is TRN?
Trinity Industries, Inc. earns 60% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 51 points above what the capital costs: growth creates value
- Operating margin
- 37%
Operating margin · Railroads median 33% · 12 months to Q2 2026
- Cash conversion
- 0.68×
Cash conversion · 1.22× a year ago · the operating profit has not turned into cash yet
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −8.8% |
| FY2021 | 17% |
| FY2022 | 17% |
| FY2023 | 14% |
| FY2024 | 16% |
| FY2025 | 30% |
Details›
- Gross margin12 months to Q2 2026
- 26%
- Operating margin12 months to Q2 2026
- 37%
- Net margin12 months to Q2 2026
- 17%
- Free cash flow margin
- 17%
- Revenue, trailing twelve months
- $2.04B
- Free cash flow, trailing twelve months
- $343M
- Net income, trailing twelve months
- $339M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 60%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.