Trinity Capital (TRIN) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: 12.66%
• Average Volume (3M): 711.77K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.54
• Revenue Growth: 31.43%
• EPS Growth: 30.85%
• Country: US
• Employees: 58
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.53
• Shares Outstanding: 70,314,160
• 10 Day Avg. Volume: 999,850
• 30 Day Avg. Volume: 711,774
• PEG Ratio: -13.66
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 3.36
• P/FCF Ratio: -2.40
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 7.95
• Enterprise Value/Gross Profit: 8.73
• Enterprise Value/Ebitda: 11.20
• 1Y Price Target: $16.25
• Price Target Upside: 0.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: $18.50 ▲(14.84% Upside)

Trinity Capital's strong technical indicators and attractive valuation are the most significant factors driving the high score. The company's robust financial performance and positive earnings call sentiment further support the score, despite concerns over cash flow management.

Positive Factors

Revenue Growth

The significant revenue growth indicates Trinity Capital's successful expansion and strong demand for its financing solutions, enhancing its market position.

Investment-Grade Rating

Achieving an investment-grade rating allows Trinity Capital to access debt capital at more favorable rates, supporting long-term financial stability and growth.

SBIC Fund Approval

The SBIC fund approval enhances Trinity Capital's ability to expand its investment portfolio, providing a significant boost to its capital resources and growth potential.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates challenges in converting earnings into cash, which could strain liquidity and limit operational flexibility.

High Liabilities

Elevated liabilities can increase financial risk and limit the company's ability to invest in growth opportunities, impacting long-term stability.

Increase in Watch List Portfolio

An increase in the watch list portfolio suggests potential underperformance or need for additional capital in some investments, posing future risk.

Trinity Capital Business Overview & Revenue Model

Company Description

Trinity Capital (TRIN) is a prominent specialty lending company that provides debt, including loans and equipment financings, to growth-stage companies in various industries such as technology, life sciences, and other high-growth sectors. The company primarily focuses on offering customized financing solutions to venture capital-backed companies, helping them meet their capital needs and achieve growth objectives.

How the Company Makes Money

Trinity Capital makes money by providing capital in the form of debt financing to growth-stage companies. The company generates revenue through the interest and fees charged on these loans and equipment financings. Trinity Capital targets venture capital-backed companies that require financial support to fuel their expansion and development. The company's key revenue streams include interest income from loan agreements, origination fees associated with new financings, and potential equity participation through warrants or other equity-linked instruments. Additionally, Trinity Capital's expertise in tailoring solutions to meet the specific needs of its clients allows it to maintain strong relationships and partnerships with venture capital firms, which can contribute to a steady pipeline of potential clients and revenue opportunities.

Trinity Capital Financial Statement Overview

Summary

Trinity Capital has shown robust revenue and profit growth with impressive margins, reflecting strong operational performance. However, high liabilities and negative cash flow are areas of concern, indicating potential risks in cash flow management.

Income Statement

Trinity Capital has demonstrated strong revenue growth, increasing from $9.39 million in 2022 to $226.73 million in 2024. The gross profit margin for 2024 is 80.8%, indicating efficient cost management. The net profit margin has also improved substantially to 52.3% in 2024, showcasing strong profitability. However, the revenue growth rate has been volatile, with significant fluctuations over the years.

Balance Sheet

The company has improved its equity base from $238.75 million in 2020 to $822.98 million in 2024, reflecting strong shareholder support and financial stability. The debt-to-equity ratio has decreased, indicating better leverage management. However, the equity ratio stands at 46.4% for 2024, suggesting moderate reliance on debt financing. While the return on equity is impressive at 14.4% for 2024, indicating good profitability, the high total liabilities remain a concern.

Cash Flow

Trinity Capital shows negative free cash flow for consecutive years, with a significant outflow of $316.91 million in 2024. This suggests challenges in generating positive cash flow from operations. The operating cash flow to net income ratio is negative, indicating that earnings are not translating effectively into cash flows. However, the company has managed to secure financing, as seen by the positive financing cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	246.65M	226.73M	174.84M	9.39M	155.09M	23.82M
Gross Profit	224.47M	183.21M	141.75M	-17.80M	139.57M	13.39M
EBITDA	175.07M	177.54M	121.19M	101.46M	0.00	0.00
Net Income	138.76M	115.60M	76.89M	-30.38M	132.32M	-6.11M
Balance Sheet
Total Assets	2.05B	1.77B	1.31B	1.13B	937.12M	559.71M
Cash, Cash Equivalents and Short-Term Investments	26.25M	9.63M	4.76M	47.92M	31.68M	44.66M
Total Debt	0.00	877.67M	646.89M	610.59M	455.35M	299.75M
Total Liabilities	1.12B	951.26M	699.82M	666.79M	490.58M	320.96M
Stockholders Equity	923.57M	822.98M	611.16M	459.65M	446.53M	238.75M
Cash Flow
Free Cash Flow	-234.58M	-317.33M	-99.00M	-235.94M	-242.88M	-58.48M
Operating Cash Flow	-234.14M	-316.91M	-96.26M	-235.74M	-241.67M	-58.23M
Investing Cash Flow	-88.32M	-420.00K	-2.74M	-194.00K	-1.20M	-91.98M
Financing Cash Flow	381.19M	322.19M	93.15M	199.81M	228.52M	211.31M

Trinity Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 16.11 is below the 20-day moving average (MA) of 16.16, above the 50-day MA of 15.72, and above the 200-day MA of 14.51, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 31.62 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	80 Outperform	$1.11B	7.08	17.31%	12.66%	31.43%	30.85%
CSWC	71 Outperform	1.25B	14.10	9.11%	10.08%	12.82%	-5.37%
SLRC	71 Outperform	843.41M	9.50	―	10.55%	5.87%	-12.64%
BCSF	66 Neutral	935.40M	8.67	―	12.47%	-3.29%	-16.86%
NMFC	65 Neutral	1.03B	12.79	―	13.18%	39.05%	-32.62%
PFLT	63 Neutral	926.70M	11.05	9.65%	13.28%	55.25%	-47.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Trinity Capital Corporate Events

Trinity Capital Enters $250M Stock Sale Agreement

On August 29, 2025, Trinity Capital Inc. entered into open market sale agreements with Jefferies LLC, B. Riley Securities, Inc., Keefe, Bruyette & Woods, Inc., and Compass Point Research & Trading, LLC, allowing the company to issue and sell up to $250 million in shares of its common stock. The proceeds from this offering are intended for investments aligned with the company’s strategy and general corporate purposes, potentially impacting its market operations and stakeholder interests.

Trinity Capital Reports Strong Q2 2025 Financial Results

On August 6, 2025, Trinity Capital Inc. reported its financial results for the second quarter of 2025, highlighting a 27.3% year-over-year increase in total investment income, reaching $69.5 million. The company’s Net Asset Value (NAV) hit a new high of $923.6 million, marking a 35.8% increase from the previous year. The quarter also saw a net increase in net assets resulting from operations of $41.4 million. Trinity Capital’s strong performance was attributed to disciplined execution across its credit strategies and sustained demand from growth-oriented companies, as noted by CEO Kyle Brown. The company maintained its momentum in direct lending and RIA platform growth, with a focus on delivering value to borrowers, partners, and investors.

Trinity Capital Announces Q2 2025 Portfolio Activity

Trinity Capital Inc. announced its portfolio activity for the second quarter of 2025, originating $519 million in new commitments and funding $365 million in investments. The company plans to release its complete second quarter financial results on August 6, 2025, with a conference call scheduled the same day to discuss these results. This announcement highlights Trinity Capital’s significant activity in secured loans and equipment financings, as well as its strategic funding to both new and existing portfolio companies. The company’s robust portfolio activity underscores its strong positioning in the alternative asset management industry, potentially impacting stakeholders by demonstrating its capability to generate substantial new commitments and manage repayments effectively.

Trinity Capital Issues $125 Million in Senior Notes

On July 3, 2025, Trinity Capital Inc. entered into a seventh supplemental indenture with U.S. Bank Trust Company to issue $125 million in 6.750% notes due in 2030. The notes, which are unsecured obligations, rank senior to subordinated debt and are intended to repay outstanding secured indebtedness with KeyBank, National Association. This move is part of Trinity Capital’s strategy to manage its debt obligations and improve its financial positioning.

Trinity Capital Announces $125 Million Notes Issuance

On June 26, 2025, Trinity Capital Inc. entered into an underwriting agreement with Keefe, Bruyette & Woods, Inc. and Morgan Stanley & Co. LLC for the issuance and sale of $125 million in 6.750% Notes due 2030. This transaction, expected to close on July 3, 2025, involves customary representations, warranties, and indemnification provisions, and was made under the company’s effective shelf registration statement.

Trinity Capital Re-elects Directors at Annual Meeting

On June 12, 2025, Trinity Capital Inc. held its Annual Meeting of Stockholders where two key proposals were voted upon. The stockholders re-elected two directors, Irma Lockridge and Steven L. Brown, to the Board of Directors and ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.