Trinity Capital, Inc. (TRIN)
NASDAQ:TRIN
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Trinity Capital
(NASDAQ:TRIN)
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Rating:72Outperform
Price Target:
$18.50
â–²(14.41% Upside)
Action:Reiterated
Date:05/22/26
The score is driven by attractive valuation (low P/E and high dividend yield) and constructive technical momentum, supported by a generally positive earnings call emphasizing dividend coverage, liquidity, and growth initiatives. The main offset is financial quality risk from historically volatile cash flows and only moderate balance-sheet flexibility despite strong current profitability.
Positive Factors
High yield and profitability
Sustained double‑digit yields and a 15.8% ROE indicate durable earnings power from a largely floating‑rate, first‑lien portfolio. Coverage above 100% supports a shareholder‑first distribution policy and suggests underlying earnings can fund dividends absent major credit shocks.
Negative Factors
Volatile cash generation
Multi‑year negative operating/free cash flow followed by a recent rebound signals inconsistent cash conversion of reported earnings. For a dividend‑focused BDC, unreliable cash flow increases dependence on capital markets for distributions and growth, raising structural funding and rollback risk in tighter markets.
Read all positive and negative factors
Positive Factors
Negative Factors
High yield and profitability
Sustained double‑digit yields and a 15.8% ROE indicate durable earnings power from a largely floating‑rate, first‑lien portfolio. Coverage above 100% supports a shareholder‑first distribution policy and suggests underlying earnings can fund dividends absent major credit shocks.
Read all positive factors
Trinity Capital (TRIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend Yield13.53%
Average Volume (3M)1.15M
Price to Earnings (P/E)6.8
Beta (1Y)0.61
Revenue Growth4.03%
EPS Growth-16.92%
CountryUS
Employees58
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.06
Shares Outstanding89,887,650
10 Day Avg. Volume954,232
30 Day Avg. Volume1,149,051
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 Cap1.73
Enterprise Value/Revenue9.30
Enterprise Value/Gross Profit11.69
Enterprise Value/Ebitda13.14
Forecast
1Y Price Target
$16.50Price Target Upside2.04% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)2.09
Revenue Forecast (FY)$374.17M
Trinity Capital Business Overview & Revenue Model
Company Description
Trinity Capital Inc. is a business development company. It is a venture capital firm specializing in venture debt to growth stage companies looking for loans and/or equipment financing. Trinity Capital Inc. was founded in 2019 is based in Phoenix,...
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:Aug 05, 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 | 195.35M | 216.17M | 118.27M | 121.19M | -27.99M | 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 | 86.08M | -535.50M | -317.33M | -99.00M | 54.72M | -242.88M |
| Operating Cash Flow | 86.92M | -535.50M | -316.91M | -96.26M | 54.91M | -241.67M |
| Investing Cash Flow | -605.94M | -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
Neutral
16.17
Price Trends
15.51
Positive
15.27
Positive
14.56
Positive
Market Momentum
0.31
Positive
53.32
Neutral
20.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIN, the sentiment is Neutral. The current price of 16.17 is below the 20-day moving average (MA) of 16.61, above the 50-day MA of 15.51, and above the 200-day MA of 14.56, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.48B | 6.76 | 14.73% | 13.53% | 4.03% | -16.92% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.41B | 11.07 | 11.68% | 11.90% | 55.92% | 35.62% | |
60 Neutral | $856.91M | 59.32 | 6.57% | 13.18% | 2.31% | -35.07% | |
59 Neutral | $749.95M | -3.83 | -4.83% | 14.17% | -24.31% | -157.16% | |
56 Neutral | $742.23M | -45.98 | 4.42% | 13.63% | 15.30% | -48.57% | |
52 Neutral | $997.36M | -18.33 | 5.14% | 17.34% | 14.92% | 48.21% |
* Financial Sector Average
TRIN
Trinity Capital
16.49
4.13
33.41%
CSWC
Capital Southwest
22.77
4.74
26.30%
NMFC
New Mountain Finance
7.94
-1.28
-13.88%
GSBD
Goldman Sachs BDC
8.86
-0.40
-4.34%
CGBD
Carlyle Secured Lending Inc
10.68
-1.46
-12.06%
BCSF
Bain Capital Specialty Finance
13.21
-0.18
-1.36%
Trinity Capital Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Trinity Capital Announces Strong Q1 2026 Investment Activity
Positive
Apr 10, 2026
On April 10, 2026, Trinity Capital reported that in the first quarter of 2026 it funded $306 million in total investments, including $236 million in secured loans, $54 million in equipment financings and $16 million in warrant and equity investmen...
Business Operations and StrategyDividendsFinancial Disclosures
Trinity Capital Posts Strong Q4 and 2025 Results
Positive
Feb 25, 2026
On February 25, 2026, Trinity Capital reported fourth-quarter and full-year 2025 results showing strong growth in income and scale. Total investment income reached $83.2 million in Q4, up 17.5% year-over-year, driving net investment income of $39....
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.