Industrial • NYSE
According to Zyberno, TRINITY INDUSTRIES INC (TRN) shows a Value Trap signal — AVERAGE BUSINESS (52/100) with an apparent Margin of Safety of +77.9%, but a Brina Gap of -5.6% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, TRINITY INDUSTRIES INC (TRN) trades at $29.27 against an estimated intrinsic value per share of $132.25 — a +77.9% Margin of Safety based on Owner Earnings of $338.30M TTM, projected at 20.1% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -5.6% weakens the case: based on the company's ROIC (9.2%) and reinvestment rate (-45.1%), the business can fundamentally grow at -4.2% — but the current enterprise value implies the market expects 1.4%. This places TRN in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 62.2% annually.
Over the trailing twelve months, TRN generated $338.30M in Owner Earnings. Capital was deployed as follows: $7.20M returned via share buybacks, $97.10M paid as dividends, $42.70M invested in capital expenditures. Reinvestment rate: -45.1%. Owner Earnings have grown at 20.1% annually over the trailing five years using log-linear regression.