Stock Price & Analysis

Based on current analysis, Trinity Industries (TRN) is trading near its oversold levels with an RSI of 31.71, suggesting potential upside. However, with a Hold rating from analysts and cautious 2025 outlook, it may be wise to hold or wait for further market confirmation before buying.

The predicted price target for TRN stock in 2025 is $34.
Analysts maintain a Hold rating with an average price target of $35.50, indicating a 14.18% upside from current levels.
The stock is currently oversold with an RSI of 28, suggesting potential for a rebound.

The S1 support level for TRN Stock is $28.81 ,The R1 resistant level for TRN Stock is $30.07.

As of the end of day on 2025-03-19, the price of TRN Stock was $29.89.

The target price for TRN Stock according to analyst rating is 35.50, with the highest price target at 36.00 and the lowest at 35.00. Analysts have a Hold rating on TRN Stock overall.

The market cap of TRN is $2.4B.

Analysis and Insights

To determine whether Trinity Industries (TRN) is overvalued, we analyze its financial metrics, market performance, and analyst sentiment.

Valuation Metrics:

• P/E Ratio: TRN's P/E ratio of 19.35 is higher than the industry average, suggesting potential overvaluation.
• EV/EBITDA: The EV/EBITDA of 11.83 indicates a premium valuation relative to earnings.
• Dividend Yield: A yield of 3.25% provides some return but may not offset high valuation.

Financial Performance:

• Revenue: Q4 revenue dropped to $629.4M, showing inconsistency.
• Net Income: Variability in net income raises growth concerns.
• ROE: 14.57% is decent but not exceptional, not justifying the P/E ratio.

Debt and Liquidity:

• Debt-to-Equity: 435.35% is high, posing financial risk.
• Current Ratio: Q4 drop to 0.85 signals potential liquidity issues.

Market Sentiment:

• Analyst Ratings: Hold rating with a $35.50 target, trading at $29.15.
• Market Performance: Strong 2024 results but caution for 2025.

Technical Analysis:

• RSI: 31.71 indicates oversold conditions.
• Fibonacci Levels: Resistance at $30.08 and $31.10.

Conclusion:

TRN appears overvalued due to high P/E, inconsistent revenues, high debt, and Hold ratings. Investors should exercise caution.

Trinity Industries, Inc. is the owner of businesses that provide rail transportation products and services in North America. The Company markets its railcar products and services under the trade name TrinityRail. The TrinityRail platform provides railcar leasing and management services; railcar manufacturing, maintenance and modifications, and other railcar logistics products and services. Its segments include the Railcar Leasing and Management Services Group and the Rail Products Group. Its Railcar Leasing and Management Services Group owns and operates a fleet of railcars and provides third-party fleet leasing, management, administrative services, and other railcar logistics products and services. Its Rail Products Group manufactures and sells railcars and related parts and components and provides railcar maintenance and modification services. It operates in various markets including refined products and chemicals, energy, agriculture, construction and metals, and consumer products.

Price Prediction for TRN Stock in 2030

Based on current trends and analysis, TRN stock is predicted to reach $42 by 2030. This forecast is supported by moderate growth expectations in the rail industry and TRN's stable financial performance. The stock is currently trading at $29.15, with a Fibonacci pivot point of 29.45, suggesting potential upside as the industry stabilizes.

TRN has a total of 9480 employees.