Trinity is in a wonderful industry and is generating substantial new business. They are undervalued in just about every metric, and they have paid a dividend for more than 20 years. The company probably won’t produce eye-popping results, but it is extremely likely that Trinity will outperform the market for many years to come.
Trinity Industries is a small-cap play that will benefit tremendously as rail shippers seek to purchase new railcars. In addition, Trinity is seeing an increase in repair and maintenance of older railcars. Trinity has increased it’s backlog significantly; further indication of increased capex by rail shippers.
As for the valuation of Trinity, we see that their price-to-earnings ratio is very reasonable, sitting at 7.5. They maintain a dividend of 1.1% and their dividend record shows that they have continued to pay a dividend each quarter since 1987, when the company was formed.