Trinity Industries

Trinity Industries, Inc. is a diversified industrial company that owns complementary, market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction sectors. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group.

The Company's businesses play an important role in the overall economy by supplying essential, infrastructure-related products and services ranging from barges, storage and distribution containers, construction aggregates, and highway products to wind towers, utility structures, railcars, railcar parts, and railcar leasing, management, and maintenance services. 

Trinity Industries, Inc. provides various products and services to the energy, chemical, agriculture, transportation, and construction sectors in the United States and internationally. Its Rail Group segment offers railcars, including autorack, box, covered hopper, gondola, intermodal, tank, and open hopper cars; and tank cars, as well as railcar maintenance services. This segment serves railroads, leasing companies, and industrial shippers of various products. The company's Railcar Leasing and Management Services Group segment leases tank and freight railcars to industrial shippers and railroads; and provides management, maintenance, and administrative services. As of December 31, 2016, this segment had a fleet of 85,110 owned or leased railcars. Its Construction Products Group segment offers highway products, such as guardrail, crash cushions, and other barriers; aggregates, including expanded shale and clay, crushed stone, sand and gravel, asphalt rock, and other products, as well as other steel products for infrastructure-related projects; and trench shields and shoring products for the construction industry. This segment offers aggregates to concrete producers; commercial, residential, and highway contractors; manufacturers of masonry products; and state and local municipalities. The company's Energy Equipment Group segment manufactures structural wind towers; utility steel structures for electricity transmission and distribution; storage and distribution containers; cryogenic tanks; and tank heads for pressure and non-pressure vessels. Its Inland Barge Group segment provides deck barges, and open or covered hopper barges to transport grain, coal, and aggregates; and tank barges to transport chemicals and various petroleum products, as well as fiberglass reinforced lift covers for grain barges. Trinity Industries, Inc. was founded in 1933 and is headquartered in Dallas, Texas.
(Summary) (Company) (Chart)

7 May 2017
Price $27.12
1yr Target $29.83
Analysts 6
Dividend $0.44
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P/E 14.20
PEG 1.42
Beta 2.20

EPS (ttm) $1.91
EPS next yr $1.11
Forward P/E 24.43
EPS next 5yr 10.00%
1yr Price Support $

Market Cap $4.12 Bil
Revenues $4.28 Bil
Earnings $284.40 Mil
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Quick Ratio ---
Current Ratio ---
Debt/Equity 0.77

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ROA 3.10%
ROE 7.30%

Trinity Industries Monthly Chart

Trinity Industries Dividend History

Trinity Industries (TRN) declares a $0.13/share quarterly dividend which is an 18.2% increase from its prior dividend of $0.11. The forward yield is now 1.92% and is payable on July 31 for shareholders of record July 14. The ex-div date is July 12.

​My Strategy

This would be a tough stock to own the last two years because the the stock it a high in 2014 of $45 per share and then spent the next year and a half loosing two thirds of its value. But on the way down it found support at $25 per share before falling to it ultimate low. Now, as it recovers, it's found resistance near $30 per share but support at the $25 level once again. That could be the key to the trade in this security. 

​What makes an investment in Trinity Industries for me most interesting is its increasing dividend. It's been increasing its dividend, with the exception of 2010, since 2004. That's a pretty good track record. Now that the dividend is $0.13 per quarter the dividend is approaching 2%. By buying shares as close as possible to $25 per share the yield rises to 2.08% which is a level that's quite acceptable to me. 

My strategy on these shares will be to sell puts with a strike price of $25. A beta of 2.20 will allow for a very nice return even if the puts are never exercised. Once ownership is taken, covered calls can easily be sold at a higher level for additional income. Done correctly these shares could produce a very nice return over time.