Summary
- 2015 is a historical record year for TRN.
- Extreme pessimism regarding litigation and industry has pushed stock to opposite extreme.
- 2016 earnings and positive litigation outcome to push stock up.
Trinity Industries (NYSE:TRN) is a stock I hold in my portfolio. It currently trades at a P/E of 5x despite good results due to extreme pessimism.
Company Description
Headquartered in Dallas, Texas, Trinity is the market leader in the railcar industry. The Rail Group can manufacture a variety of cars. The categories and some of the uses are:
- Autorack Cars (automobiles, trucks),
- Box Cars (auto parts, paper, food products),
- Covered Hopper Cars (commodities such as cement, grain products, plastic),
- Gondola Cars (coal,scrap metal, steel),
- Intermodel Cars (shipping containers),
- Open Hopper Cars (coal, aggregates)
- Tank Cars (chemicals, petroleum products, liquefied gas)
While the company is mostly known for its railcar manufacturing and leasing, TRN also operates three other groups:
- Construction Products – highway products, steel products for infrastructure, and galvanising services.
- Energy Equipment – wind towers, utility steel structures, cryogenic storage and distribution.
- Inland Barge – manufacturer of inland barges and fiberglass barge covers.
