Trinity Capital (TRIN) AI Stock Analysis

• Market Cap: $935.50M
• Dividend Yield: 14.18%
• Average Volume (3M): 514.45K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.51
• Revenue Growth: 46.14%
• EPS Growth: 34.91%
• Country: US
• Employees: 58
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): 0.52
• Shares Outstanding: 64,650,800
• 10 Day Avg. Volume: 500,373
• 30 Day Avg. Volume: 514,446
• PEG Ratio: 0.35
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.43
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 5.47
• Enterprise Value/Ebitda: 4.91
• 1Y Price Target: $15.83
• Price Target Upside: 9.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $16.00 ▲( 10.57% Upside)

Trinity Capital's strong valuation and robust earnings performance are key drivers of its score. Despite financial performance concerns, such as negative cash flow, the company's strategic initiatives and attractive dividend yield offer potential upside. Technical indicators are stable but warrant caution.

Positive Factors

Equity Issuance

TRIN benefited from accretive equity issuance and elevated portfolio activity.

Fee Income

Fee income from the JV improved to $0.8 million, reflecting potential growth in fee-based revenue.

Negative Factors

Convertible Notes

TRIN repaid its pre-IPO convertible notes in cash, resulting in a ~$0.16 per share realized loss from debt extinguishment.

Credit Concerns

TRIN's attractive +16% NOI yield is offset by credit concerns, where losses have consumed ~45% of all NOI since its exit of Lucid.

Non-Accrual Loans

Sun Basket and Formlogic were added to non-accrual this quarter, indicating potential credit risk.

Trinity Capital Business Overview & Revenue Model

Company Description

Trinity Capital (TRIN) is a specialty lending company that provides debt, including loans and equipment financing, to growth-stage companies primarily in the technology, life sciences, and other high-growth industries. The firm focuses on supporting entrepreneurial ventures and offers customized financial solutions to help these companies achieve their business objectives.

How the Company Makes Money

Trinity Capital generates revenue primarily through interest income from the loans and equipment financings it provides to its portfolio companies. The company earns interest on the capital it lends and may also generate income from origination fees associated with these financial products. Additionally, Trinity Capital may have equity warrants in some of its portfolio companies, which can provide additional revenue through capital gains if these companies experience successful exits, such as through acquisitions or public offerings. The firm's earnings are influenced by its ability to identify suitable investment opportunities, manage credit risk, and maintain effective relationships with its portfolio companies.

Trinity Capital Financial Statement Overview

Summary

Trinity Capital has demonstrated strong revenue and profit growth with impressive margins, indicating strong operational performance. However, negative cash flow and high liabilities present potential risks that need addressing for 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.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
226.73M	174.84M	9.39M	155.09M	23.82M
	Gross Profit
183.21M	141.75M	-17.80M	139.57M	13.39M
	EBIT
169.04M	129.74M	108.12M	132.32M	-6.11M
	EBITDA
177.54M	121.19M	101.46M	0.00	0.00
	Net Income Common Stockholders
115.60M	76.89M	-30.38M	132.32M	-6.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.63M	4.76M	47.92M	31.68M	44.66M
	Total Assets
1.77B	1.31B	1.13B	937.12M	559.71M
	Total Debt
49.40M	646.89M	610.59M	455.35M	299.75M
	Net Debt
39.77M	642.13M	599.98M	423.66M	255.09M
	Total Liabilities
951.26M	699.82M	666.79M	490.58M	320.96M
	Stockholders Equity
822.98M	611.16M	459.65M	446.53M	238.75M
Cash Flow		Free Cash Flow
-317.33M	-99.00M	-235.94M	-242.88M	-58.48M
	Operating Cash Flow
-316.91M	-96.26M	-235.74M	-241.67M	-58.23M
	Investing Cash Flow
-420.00K	-2.74M	-194.00K	-1.20M	-91.98M
	Financing Cash Flow
322.19M	93.15M	199.81M	228.52M	211.31M

Trinity Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRIN, the sentiment is Negative. The current price of 14.47 is below the 20-day moving average (MA) of 14.50, below the 50-day MA of 14.70, and above the 200-day MA of 13.89, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 22.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRIN.

Trinity Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIN	74 Outperform	$935.50M	6.60	17.56%	14.18%	46.14%	34.91%
SLRC	71 Outperform	$889.24M	10.13	8.86%	10.06%	14.33%	25.35%
PFLT	70 Outperform	$996.15M	11.19	7.59%	12.25%	93.63%	24.41%
CSWC	68 Neutral	$1.11B	14.04	8.52%	11.22%	4.85%	-37.38%
BCSF	66 Neutral	$996.38M	8.79	9.87%	11.03%	12.24%	-3.21%
NMFC	65 Neutral	$1.14B	10.71	8.11%	12.13%	-3.55%	-20.43%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

Trinity Capital Corporate Events

Trinity Capital Reports Strong Q1 2025 Financial Results

On May 7, 2025, Trinity Capital Inc. reported its financial results for the first quarter of 2025, highlighting a 29.5% increase in total investment income year-over-year, reaching $65.4 million. The company’s net asset value rose to $833.4 million, with a return on average equity of 15.5%. Despite macroeconomic uncertainties, Trinity Capital continues to expand its platform and generate solid returns, with total gross investment commitments of $185.9 million and a consistent dividend distribution for the 21st consecutive quarter.

Trinity Capital Announces Q1 2025 Portfolio Activity

On April 9, 2025, Trinity Capital Inc. announced its portfolio activity for the first quarter of 2025, highlighting $220 million in total investments and $186 million in new commitments. The investments included $148 million in secured loans, $71 million in equipment financings, and $1 million in warrant and equity investments. The company funded $95 million to six new portfolio companies and $125 million to 19 existing ones, while receiving $157 million from repayments and exits. Trinity Capital plans to release its full first-quarter financial results on May 7, 2025, which will be discussed in a conference call the same day.

Trinity Capital Updates Executive Employment Agreements

On March 14, 2025, Trinity Capital Inc. amended and restated employment letters with key executives, including Kyle Brown, Steven L. Brown, Gerald Harder, and Michael Testa. These letters outline employment terms, including base salaries, bonuses, and benefits, and specify conditions for termination and severance. Additionally, a retention bonus agreement was made with Kyle Brown, and non-statutory stock options were granted to certain executives, contingent on specific performance and vesting conditions.

Trinity Capital Reports Strong 2024 Financial Results

On February 26, 2025, Trinity Capital Inc. announced its financial results for the fourth quarter and full year of 2024, reporting a 31% year-over-year growth in total investment income. The company achieved record net investment income of $116 million for the year and $35 million for the fourth quarter, with a return on average equity of 17.4% in Q4. The company’s total assets under management increased by 40.6% to $2.0 billion, and it continued its streak of 20 consecutive quarters of consistent or increased dividends. These results reflect Trinity Capital’s strategic initiatives and strong portfolio management, positioning it for continued growth and shareholder value creation.