Trinity IndustriesTRN +3.00%73 Operating Margin % is 15.89% as of Mar. 2026, which is 36% above its 10-year median of 11.69. GuruFocus rates TRN with a GF Score™ of 73/100 and a GF Value™ of $21.73 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,007 Transportation companies, Trinity Industries ranks better than 75.17% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Trinity Industries Operating Margin % Related Terms
Trinity Industries Operating Margin % Historical Data
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The historical data trend for Trinity Industries's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TRN vs GBX, FSTR, RAIL: Operating Margin % Comparison
For the Railroads subindustry, Trinity Industries's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trinity Industries Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Trinity Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Trinity Industries's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Trinity Industries's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Trinity Industries (TRN) has a Operating Margin % of 15.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Trinity Industries and its competitors. This is 36% above median its historical median of 11.69. Over the past decade, Trinity Industries' Operating Margin % has ranged from 4.64 to 16.69. According to the industry distribution chart, Trinity Industries ranks #250 out of 1007 companies in the Transportation industry, placing it in the top 24.8%.
Is Trinity Industries' Operating Margin % too high?
Trinity Industries' current Operating Margin % of 15.89% is 36% above median its 10-year median of 11.69. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 16.69. The Transportation industry median Operating Margin % is 7.36. Trinity Industries' value of 15.89% is 115.9% above this industry median. Based on the distribution chart, Trinity Industries ranks #250 out of 1007 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Trinity Industries has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trinity Industries' Operating Margin % compare to GBX and FSTR?
According to the Transportation industry distribution chart, Trinity Industries ranks #250 out of 1007 companies for Operating Margin %. This places Trinity Industries in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.36. Trinity Industries' value of 15.89% is 115.9% above this benchmark. Historically, Trinity Industries' own Operating Margin % has ranged from 4.64 to 16.69 over the past decade. While the company's 10-year median is 11.69 vs. the industry median of 7.36, Trinity Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trinity Industries's current Operating Margin % of 15.89% is 115.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Trinity Industries and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trinity Industries's current Operating Margin % is 15.89%, which is 36% above median its own 10-year median of 11.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trinity Industries stock overvalued right now?
Based on GuruFocus' analysis, Trinity Industries (TRN) is currently considered Significantly Overvalued. The stock's GF Value™ is $21.73, compared to a current price of $36.38 — trading 67.4% above its estimated fair value. The current Operating Margin % is 15.89%, which is 36% above median its 10-year median of 11.69 and 115.9% above the Transportation industry median of 7.36. Trinity Industries' overall GF Score™ is 73/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Trinity Industries (TRN), the current Operating Margin % is 15.89% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trinity Industries (TRN) Overvalued in 2026?
Based on GuruFocus' analysis, Trinity Industries stock appears to be overvalued.
The current stock price of $36.38 is trading 67.4% above its estimated GF Value™ of $21.73.
GuruFocus considers Trinity Industries to be Significantly Overvalued.
Key valuation signals for TRN:
Operating Margin %: 15.89% (36% above median its 10-year median of 11.69)
GF Value™: $21.73 vs. price of $36.38 (67.4% above fair value)
Industry Position: 115.9% above the Transportation median (#250 of 1007)
No single metric tells the full story. See the TRN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trinity Industries Inc sells and leases railroad products and railcar maintenance services in North America. The company operates under the name TrinityRail in two main segments: railcar leasing and management services, which owns railcars and provides fleet management and administration services; rail products, which builds, sells, and modifies freight and tank railcars and their components; and all other, which sells highway products such as guardrail and other highway barriers. Customers include railroads, leasing companies, and shipping companies in agriculture, construction, consumer products, energy, and chemicals.
73GF Score
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