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Trinity Capital (TRIN)
NASDAQ:TRIN
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Trinity Capital
(NASDAQ:TRIN)
Select Model
Select Model
Rating:73Outperform
Price Target:
$16.50
â–²(10.59% Upside)
Trinity Capital's strong valuation and positive earnings call sentiment are significant strengths, contributing to a high overall score. However, concerns about cash flow management and neutral technical indicators slightly temper the outlook.
Positive Factors
Revenue Growth
The significant revenue growth indicates strong demand for Trinity Capital's financing solutions and effective market penetration, supporting long-term business expansion.
Strong Asset Management
The growth in assets under management reflects Trinity Capital's ability to attract and manage substantial investments, enhancing its market position and financial stability.
Consistent Dividend Distribution
Consistent dividend payments demonstrate Trinity Capital's commitment to returning value to shareholders and its robust cash generation capabilities.
Negative Factors
Negative Cash Flow
Persistent negative cash flow suggests challenges in converting earnings into cash, which could impact Trinity Capital's ability to fund operations and growth sustainably.
High Liabilities
High liabilities may strain Trinity Capital's financial flexibility, posing risks to its long-term financial health and ability to leverage future opportunities.
Nonaccruals and Portfolio Concerns
The presence of nonaccruals indicates potential issues in portfolio performance, which could affect Trinity Capital's credit quality and future earnings stability.
Trinity Capital (TRIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.13B
Dividend Yield13.67%
Average Volume (3M)759.09K
Price to Earnings (P/E)6.8
Beta (1Y)0.51
Revenue Growth33.44%
EPS Growth25.22%
CountryUS
Employees58
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.52
Shares Outstanding75,683,360
10 Day Avg. Volume617,909
30 Day Avg. Volume759,088
Financial Highlights & Ratios
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 Cap2.02
Enterprise Value/Revenue8.01
Enterprise Value/Gross Profit10.91
Enterprise Value/Ebitda15.74
Forecast
1Y Price Target
$16.13Price Target Upside8.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)2.09
Revenue Forecast (FY)$290.66M
Trinity Capital Business Overview & Revenue Model
Company DescriptionTrinity 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, Arizona with additional offices in Lutherville-Timonium, Maryland, San Diego, California and Austin, Texas.
How the Company Makes MoneyTrinity Capital generates revenue primarily through interest income from its debt investments and fees associated with its equity investments. The company typically provides secured loans and other forms of financing to growth-stage companies, which allows it to earn interest on the principal amount of these loans. Additionally, Trinity may earn management fees for advising and managing its investment portfolio. The company's partnerships with emerging companies and its strategic focus on sectors with high growth potential contribute to its revenue model, while the recovery of the economy and the performance of its portfolio companies can significantly impact its earnings.
Trinity Capital Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
Trinity Capital reported strong financial performance with significant increases in net investment income, net asset value, and assets under management. The company maintained strong credit quality and continued its consistent dividend distribution. However, there were challenges with nonaccruals and specific investments, as well as increased compensation expenses due to team expansion.Q3-2025 Updates
Positive Updates
Significant Increase in Net Investment Income
Trinity Capital reported $37 million in net investment income, marking a 29% increase compared to Q3 of the previous year.
Record Net Asset Value Growth
The company's net asset value grew 8% quarter-over-quarter to a record $998 million, representing a 32% year-over-year increase.
Growth in Assets Under Management
Platform assets under management increased to more than $2.6 billion, up 28% year-over-year.
Consistent Dividend Distribution
A third quarter cash dividend of $0.51 per share was distributed, marking the 23rd consecutive quarter of a consistent dividend.
Strong Credit Quality
The company maintained strong credit quality with nonaccruals at 1% of the portfolio at fair value.
Successful Fundraising and Joint Ventures
Raised $83 million of equity through the ATM program at a 19% average premium to NAV and closed a new joint venture with a large asset manager.
Negative Updates
Nonaccruals and Portfolio Performance Concerns
One new company was added to nonaccrual status during Q3, with nonaccruals totaling $20.7 million at fair value.
Challenges with Nomad Health Investment
Trinity Capital wrote off a significant portion of its investment in Nomad Health, marking the remaining portion on nonaccrual due to conversion of debt to equity and continued uncertainty.
Increased Compensation Expenses
Compensation expenses have been increasing due to team expansion and the launch of a new team in the U.K.
Company Guidance
During Trinity Capital's Third Quarter 2025 Earnings Conference Call, the company reported a robust performance with a $37 million net investment income, marking a 29% increase compared to the previous year. The net asset value (NAV) grew 8% quarter-over-quarter to a record $998 million, while platform assets under management (AUM) rose to over $2.6 billion, reflecting a 28% year-over-year increase. The company's credit quality remained strong with nonaccruals at just 1% of the portfolio at fair value. Trinity Capital also distributed a $0.51 per share cash dividend for Q3 and has consistently maintained dividends for 23 consecutive quarters. The firm's return on equity and effective yield were noted as among the best in the business development company (BDC) space, with a NAV growth of 32% year-over-year. Furthermore, Trinity Capital funded $471 million in Q3, contributing to $1.1 billion in year-to-date investments, nearly matching the total for 2024. The investment pipeline remains promising, with $773 million in new commitments for Q3 and $1.2 billion in total unfunded commitments.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. The company needs to focus on converting earnings into cash flow to ensure long-term sustainability.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.78
Positive
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.70
Positive
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.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 284.52M | 237.44M | 174.84M | 43.54M | 175.48M | 40.59M |
| Gross Profit | 208.78M | 175.49M | 141.75M | 9.39M | 155.09M | 23.82M |
| EBITDA | 144.67M | 118.27M | 121.19M | -27.99M | 132.57M | -6.06M |
| Net Income | 142.00M | 115.60M | 76.89M | -30.38M | 132.32M | -6.11M |
Balance Sheet | ||||||
| Total Assets | 2.25B | 1.77B | 1.31B | 1.13B | 937.12M | 559.71M |
| Cash, Cash Equivalents and Short-Term Investments | 9.47M | 9.63M | 4.76M | 10.61M | 31.68M | 44.66M |
| Total Debt | 0.00 | 877.67M | 646.89M | 610.59M | 455.35M | 299.75M |
| Total Liabilities | 1.25B | 951.26M | 699.82M | 666.79M | 490.58M | 320.96M |
| Stockholders Equity | 998.26M | 822.98M | 611.16M | 459.65M | 446.53M | 238.75M |
Cash Flow | ||||||
| Free Cash Flow | 85.97M | -317.33M | -99.00M | 54.72M | -242.88M | -58.48M |
| Operating Cash Flow | 86.46M | -316.91M | -96.26M | 54.91M | -241.67M | -58.23M |
| Investing Cash Flow | -439.04M | -420.00K | -2.74M | -290.85M | -1.20M | -91.98M |
| Financing Cash Flow | 353.51M | 322.19M | 93.15M | 199.81M | 228.52M | 211.31M |
Trinity Capital Technical Analysis
Positive
14.92
Price Trends
14.85
Positive
15.03
Negative
14.42
Positive
Market Momentum
-0.03
Negative
55.20
Neutral
85.35
Negative
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 14.92 is above the 20-day moving average (MA) of 14.66, above the 50-day MA of 14.85, and above the 200-day MA of 14.42, indicating a bullish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.13B | 6.83 | 16.18% | 13.67% | 33.44% | 25.22% | |
71 Outperform | $1.26B | 14.09 | 9.80% | 10.54% | 25.28% | -1.69% | |
71 Outperform | $1.15B | 8.84 | 8.75% | 16.44% | -16.58% | 65.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $945.55M | 11.27 | 7.03% | 13.11% | -8.23% | -35.72% | |
67 Neutral | $934.76M | 10.02 | 8.18% | 12.49% | -26.08% | -27.65% | |
66 Neutral | $1.01B | 14.94 | 5.43% | 13.23% | 36.15% | -38.59% |
* Financial Sector Average
TRIN
Trinity Capital
14.92
2.39
19.07%
CSWC
Capital Southwest
21.88
2.04
10.28%
NMFC
New Mountain Finance
9.75
-0.77
-7.32%
GSBD
Goldman Sachs BDC
10.08
-0.79
-7.27%
CGBD
Carlyle Secured Lending Inc
12.97
-2.72
-17.34%
BCSF
Bain Capital Specialty Finance
14.41
-0.96
-6.25%
Trinity Capital Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Trinity Capital Secures $200M Loan Facility Agreement
Neutral
Nov 6, 2025
On November 5, 2025, Trinity Capital Inc.’s subsidiary, TrinCap Term Funding, LLC, entered into a credit agreement with KeyBank National Association for a secured term loan facility of $200 million. This agreement, which includes a two-year initial period and a two-year amortization period, is collateralized by all investment assets held by TrinCap and contains customary financial covenants and events of default, impacting the company’s financial strategy and stakeholder interests.
Business Operations and StrategyFinancial Disclosures
Trinity Capital Reports Record Q3 2025 Financial Results
Positive
Nov 5, 2025
On November 5, 2025, Trinity Capital Inc. reported its third quarter 2025 financial results, highlighting a record funding of $471 million and a 22.3% year-over-year growth in total investment income. The company achieved a net asset value of $998 million, reflecting a 31.9% increase from the previous year. The results demonstrate strong momentum in Trinity’s operations, with significant investment activity and consistent dividend distributions, underscoring its robust market positioning and commitment to delivering value to stakeholders.
Business Operations and StrategyFinancial Disclosures
Trinity Capital Announces Q3 2025 Portfolio Activity
Positive
Oct 9, 2025
On October 9, 2025, Trinity Capital Inc. announced its third-quarter 2025 portfolio activity, highlighting the origination of $773 million in new commitments and funding of $471 million in investments. The company plans to release its full financial results on November 5, 2025, with a conference call scheduled for the same day. This activity underscores Trinity Capital’s robust investment operations and its strategic positioning in the alternative asset management industry.
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.