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Trinity Capital
(NASDAQ:TRIN)
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Rating:71Outperform
Price Target:
$19.50
â–²(12.98% Upside)
Action:Reiterated
Date:07/15/26
The score is driven primarily by solid current profitability but meaningfully constrained by historically volatile cash-flow conversion. Technicals are supportive with an uptrend across key moving averages and positive momentum. Valuation is a key positive given the low P/E and very high dividend yield, while the latest earnings call was generally constructive on dividend coverage and growth initiatives despite some credit/portfolio churn risks.
Positive Factors
High ROE and sustainable portfolio yield
A 15.8% ROE and strong portfolio yield reflect durable earnings capacity for a BDC focused on growth-stage lending. Consistent ability to cover distributions (104% coverage) signals earnings quality and supports shareholder returns while underpinned by secured, yield-driven loan structures.
Negative Factors
Volatile operating and free cash flow history
Multi-year negative operating and free cash flow prior to a recent TTM rebound indicates structural volatility in cash conversion for a BDC whose income depends on portfolio activity. This weakens confidence in sustained dividend coverage and capital deployment unless cash stability is reestablished.
Read all positive and negative factors
Positive Factors
Negative Factors
High ROE and sustainable portfolio yield
A 15.8% ROE and strong portfolio yield reflect durable earnings capacity for a BDC focused on growth-stage lending. Consistent ability to cover distributions (104% coverage) signals earnings quality and supports shareholder returns while underpinned by secured, yield-driven loan structures.
Read all positive factors
Trinity Capital (TRIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.58B
Dividend Yield11.62%
Average Volume (3M)977.85K
Price to Earnings (P/E)8.5
Beta (1Y)0.61
Revenue Growth4.03%
EPS Growth-16.92%
CountryUS
Employees106
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.06
Shares Outstanding89,887,650
10 Day Avg. Volume983,287
30 Day Avg. Volume977,846
Financial Highlights & Ratios
PEG Ratio-0.71
Price to Book (P/B)0.93
Price to Sales (P/S)4.37
P/FCF Ratio-1.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.33Price Target Upside-5.37% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)2.09
Revenue Forecast (FY)$373.22M
Trinity Capital Business Overview & Revenue Model
Company Description
Trinity Capital Inc. is a business development company specializing in term loans, equipment financing, and private equity-related investments. The firm provides tech lending, equipment financing, life sciences, warehouse lending, and sponsor fina...
How the Company Makes Money
Trinity Capital primarily makes money by originating and holding interest-earning debt investments in its portfolio. Its core revenue stream is interest income collected from borrowers on loans it provides (typically secured lending to growth-stag...
Trinity Capital Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong financial and operational achievements — record net assets, double‑digit ROE and yields (15.8%), robust originations and a growing managed funds platform (AUM +36% YoY) — while acknowledging limited realized/unrealized losses, a small rise in nonaccruals, higher early repayments, and concentration in newer vintages. Management highlighted disciplined underwriting, improving liquidity, and strategic off‑balance sheet initiatives (SBIC and JV) to grow fee income and de‑risk the BDC. Overall, the positives (growth in NAV/AUM, income expansion, strong credit metrics and strategic capital initiatives) meaningfully outweigh the contained negatives (modest marks, higher churn, and newer-vintage concentration).Positive Updates
Record NAV and Net Assets Growth
Net asset value grew 7% quarter-over-quarter and 40% year-over-year to a record $1.2 billion; NAV per share was $13.27 (down from $13.42 Q/Q but up ~2% YoY).
Negative Updates
Quarterly NAV Per Share Decline and Realized/Unrealized Losses
NAV per share decreased from $13.42 to $13.27 Q/Q; Q1 included approximately $10 million of net realized losses (driven by equity conversion of two loans) and $5 million of net unrealized depreciation.
Read all updates
Q1-2026 Updates
Positive
Negative
Record NAV and Net Assets Growth
Net asset value grew 7% quarter-over-quarter and 40% year-over-year to a record $1.2 billion; NAV per share was $13.27 (down from $13.42 Q/Q but up ~2% YoY).
Read all positive updates
Company Guidance
The call guided that Trinity will maintain a shareholder-first distribution policy—paying a $0.17 monthly dividend through the end of Q2 and planning to announce the Q3 dividend in June (subject to board approval)—while Q1 results show $44.5M of net investment income ($0.53 per basic share, 104% coverage) and estimated undistributed taxable income of ~$68M ($0.78 per share, >4 months of distributions); managed funds contributed $0.04 per share (~8% of NII). Management expects to begin deploying the SBIC fund this quarter after an initial $45.3M equity close of an $87.5M target—the SBIC’s 2:1 SBA leverage is expected to add >$260M of incremental capacity—supporting growth of managed funds AUM ($400M) and platform AUM (> $2.9B). Capital and portfolio guidance emphasized a robust pipeline ($1.2B unfunded commitments and $300M of term sheets as of March 31, 94% subject to diligence), total platform liquidity >$500M, an ATM raise of $78.4M at a ~12% premium, net leverage of 1.15x (down from 1.18x), and continued focus on credit quality (nonaccruals ~1% of the portfolio, 99% of debt at fair value, 88% first‑lien secured, weighted avg LTV 19%, Q1 ROE and weighted‑avg effective yield both 15.8%).Trinity Capital Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 276.05M | 232.25M | 237.44M | 174.84M | 43.54M | 175.48M |
| Gross Profit | 219.75M | 232.25M | 175.49M | 141.75M | 9.39M | 155.09M |
| EBITDA | 196.46M | 216.17M | 118.27M | 0.00 | -24.19M | 132.57M |
| Net Income | 154.04M | 135.60M | 115.60M | 76.89M | -30.38M | 132.32M |
Balance Sheet | ||||||
| Total Assets | 2.56B | 2.48B | 1.77B | 1.31B | 1.13B | 937.12M |
| Cash, Cash Equivalents and Short-Term Investments | 19.63M | 19.11M | 9.63M | 4.76M | 10.61M | 31.68M |
| Total Debt | 1.36B | 1.31B | 877.67M | 646.89M | 610.59M | 455.35M |
| Total Liabilities | 1.39B | 1.39B | 951.26M | 699.82M | 666.79M | 490.58M |
| Stockholders Equity | 1.17B | 1.09B | 822.98M | 611.16M | 459.65M | 446.53M |
Cash Flow | ||||||
| Free Cash Flow | -80.28M | -535.50M | -317.33M | -99.00M | 54.72M | -242.88M |
| Operating Cash Flow | -79.43M | -535.50M | -316.91M | -96.26M | 54.91M | -241.67M |
| Investing Cash Flow | -439.59M | -785.00K | -420.00K | -2.74M | -290.85M | -1.20M |
| Financing Cash Flow | 530.26M | 545.77M | 322.19M | 93.15M | 199.81M | 228.52M |
Trinity Capital Technical Analysis
Positive
17.26
Price Trends
17.10
Positive
16.11
Positive
15.07
Positive
Market Momentum
0.15
Positive
59.18
Neutral
49.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIN, the sentiment is Positive. The current price of 17.26 is below the 20-day moving average (MA) of 17.54, above the 50-day MA of 17.10, and above the 200-day MA of 15.07, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 49.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRIN.
Trinity Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.58B | 8.52 | 14.73% | 11.82% | 4.03% | -16.92% | |
70 Outperform | $1.47B | 11.74 | 11.68% | 9.27% | 55.92% | 35.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $805.67M | 10.87 | 6.57% | 15.29% | 2.31% | -35.07% | |
62 Neutral | $650.78M | -11.72 | -4.83% | 17.69% | -24.31% | -157.16% | |
59 Neutral | $694.28M | 14.06 | 4.42% | 15.44% | 15.30% | -48.57% | |
52 Neutral | $969.22M | 13.45 | 5.14% | 17.78% | 14.92% | 48.21% |
* Financial Sector Average
TRIN
Trinity Capital
18.16
5.03
38.31%
CSWC
Capital Southwest
24.72
4.53
22.45%
NMFC
New Mountain Finance
7.48
-1.36
-15.36%
GSBD
Goldman Sachs BDC
8.95
-0.54
-5.73%
CGBD
Carlyle Secured Lending Inc
10.49
-1.55
-12.87%
BCSF
Bain Capital Specialty Finance
12.94
0.12
0.91%
Trinity Capital Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Trinity Capital Announces Strategic NYSE Listing Transfer
Positive
Jul 15, 2026
On July 14, 2026, Trinity Capital announced plans to move the listing of its common stock and two series of fixed-rate senior notes from the Nasdaq Global Select Market to the New York Stock Exchange and NYSE Texas. The company’s common stoc...
Business Operations and StrategyFinancial Disclosures
Trinity Capital Highlights Strong Q2 Investment Commitments
Positive
Jul 9, 2026
On July 9, 2026, Trinity Capital reported that it originated $709 million in new commitments during the second quarter of 2026, bringing first-half 2026 commitments to $1.1 billion. During the quarter, it funded $619 million in gross investments, ...
Executive/Board ChangesShareholder Meetings
Trinity Capital Shareholders Back Equity Plan and Governance
Positive
Jun 12, 2026
At its Annual Meeting of Stockholders held on June 10, 2026, Trinity Capital shareholders approved an amendment to the 2019 Non-Employee Director Restricted Stock Plan, increasing the shares available for issuance to non-employee directors by 100,...
Business Operations and StrategyPrivate Placements and Financing
Trinity Capital Issues $300 Million Unsecured Notes Offering
Positive
May 21, 2026
On May 19, 2026, Trinity Capital Inc. entered into an underwriting agreement with a syndicate led by Keefe, Bruyette Woods and MUFG Securities Americas to issue $300 million of 7.000% unsecured notes due May 21, 2031, with the transaction closing...
Business Operations and StrategyPrivate Placements and Financing
Trinity Capital Launches $300 Million At-The-Market Program
Positive
May 7, 2026
On May 7, 2026, Trinity Capital Inc. entered into multiple open market sale agreements with Jefferies, B. Riley Securities, Keefe, Bruyette Woods, and Compass Point, allowing it to issue and sell up to $300 million of its common stock through an ...
Business Operations and StrategyDividendsFinancial Disclosures
Trinity Capital Reports Strong First-Quarter 2026 Financial Results
Positive
May 6, 2026
On May 6, 2026, Trinity Capital reported strong financial results for the quarter ended March 31, 2026, highlighted by a 37.8% year-over-year increase in total investment income to $90.1 million and record net investment income of $44.5 million, o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.