Trinity Industries (TRN) is a leading company that specializes in industrial products and services. They offer railcars, railcar parts, and leasing, management and maintenance products. They also offer additional services such as barges, storage and distribution containers as well as highway products and wind towers.
The company which is based in Dallas, Texas was founded in 1933 and employs 22,030 people and has annual sales of $6,392.7 billion as of 2015. Sales have tripled in the last five years from $1.9 billion to the current $6.4 billion.
In the last five years, TRN stock has seen a 74% increase in the current price of $23.49.
The last decade has seen a steady increase in earnings growth as well as dividend increases as well. TRN has paid dividends for the last 209 quarters and counting. While not in the same class as a Dividend Aristocrat, the fact that they have paid a dividend since 1964 lets me know that their shareholders are important to them.
TRN is not the highest-yielding stock. Its dividend currently is a pretty paltry 1.86% right now. But what it lacks in yield, it makes up for with consistency.
Trinity Industries breaks up their business into five different groups. We will discuss them in turn.
The Rail Group which is responsible for 45% of the revenue generated by TRN is a leading manufacturer of railcars, railcar axles, and railcar coupling devices.
They also produce autorack cars, boxcars, covered hopper cars, and tank cars among others. Currently, they compete against five other major railcar manufacturers in North America.
In 2015 TRN shipped 34,295 railcars which were 41% of all railcars shipped in North America.
In addition to the railcars, the Rail Group also manufactures railcar parts and components used in manufacturing or repairing railcars including couplers, axles, and other equipment. They also have repair services available at multiple facilities in the US.
They have set up the manufacturing to be able to change to demands of the business and be able to provide any type of railcar that is needed. Continue reading “Trinity Industries (TRN): Are they still running down the track?”