Trimas (TRS) AI Stock Analysis

• Market Cap: $870.92M
• Dividend Yield: 0.76%
• Average Volume (3M): 358.49K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 0.73
• Revenue Growth: 3.52%
• EPS Growth: -38.88%
• Country: US
• Employees: 3,900
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Packaging & Containers
• EPS (TTM): 0.59
• Shares Outstanding: 40,716,446
• 10 Day Avg. Volume: 340,552
• 30 Day Avg. Volume: 358,487
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.06
• Price to Cash Flow (P/CF): 9.10
• P/FCF Ratio: 12.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $40.00
• Price Target Upside: 87.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Trimas Corporation shows a mixed outlook. Strengths include consistent revenue growth, strong balance sheet, and positive guidance from the earnings call. However, challenges such as declining profit margins, weak technical signals, and high valuation metrics weigh down the overall score.

Positive Factors

Consumer Goods Demand

TRS’s packaging business should benefit from the rise in volume consumer goods companies are experiencing.

Manufacturing Process

TriMas Corp. (TRS) resolving bottleneck issues within its manufacturing process in its packaging business is expected to give the Company the ability to have more product to sell.

Sales Performance

TRS reported sales of $228.1 million compared to the forecast of $225.9 million, showing better-than-expected performance.

Negative Factors

Cost Structure

The decline in EPS is related to TRS having a higher cost structure this year.

Demand Concerns

Demand is unlikely to remain at the same level to give TRS the ability to scale the packaging segment to the degree expected.

Manufacturing Disruptions

A work stoppage at one of the aerospace segment’s manufacturing sites resulted in the sales missing our estimates.

Trimas Business Overview & Revenue Model

Company Description

TriMas Corporation (NASDAQ: TRS) is a diversified industrial manufacturer that designs, engineers, and manufactures a wide array of products for commercial, industrial, and consumer end markets. The company operates through three main segments: Packaging, Aerospace, and Specialty Products. Its product offerings include dispensing systems, closures, and containers in the Packaging segment; fasteners, machined components, and complex hardware in the Aerospace segment; and engines, compressors, and other industrial products in the Specialty Products segment.

How the Company Makes Money

TriMas Corporation generates revenue through the sale of its diverse product offerings across its three business segments. In the Packaging segment, the company earns income by providing innovative dispensing systems and closures to sectors such as health, beauty, and food & beverage. The Aerospace segment contributes to revenue through the sale of fasteners, machined components, and complex hardware to commercial and military aerospace customers. The Specialty Products segment drives income by selling industrial engines, compressors, and other products to end markets like energy and industrial applications. The company's revenue model is supported by long-term relationships with key customers, technological innovation, and a focus on operational efficiency across its manufacturing processes.

Trimas Financial Statement Overview

Summary

Trimas has shown steady revenue growth but faces declining profitability margins and cash flow volatility. The balance sheet reflects strong equity positioning and improved debt management, but reduced return on equity highlights concerns over shareholder returns.

Income Statement

Trimas has shown a steady revenue growth from $723.5M in 2019 to $925M in 2024. Despite the growth, the gross profit margin has been declining from 26.8% in 2019 to 21.6% in 2024. The net profit margin has also decreased from 8.6% in 2019 to 2.6% in 2024, indicating pressure on profitability. The EBIT margin saw a significant drop from 12.6% in 2019 to 5.1% in 2024, suggesting reduced operational efficiency. However, the company has managed to recover from a negative EBITDA margin in 2020 to maintain a positive margin through 2024.

Balance Sheet

Trimas maintains a strong equity ratio, with stockholders' equity consistently above 50% of total assets. The debt-to-equity ratio has improved from 0.46 in 2019 to 0.067 in 2024, reflecting effective debt management. However, the return on equity has declined from 8.9% in 2019 to 3.6% in 2024, indicating reduced profitability from shareholders' perspective.

Cash Flow

The company has maintained positive free cash flow, though it declined significantly from $89.2M in 2021 to $12.8M in 2024. Operating cash flow remains healthy, with a notable ratio to net income, indicating strong cash generation relative to earnings. However, the free cash flow to net income ratio has decreased, suggesting a tighter cash position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
925.01M	893.55M	883.83M	857.11M	769.97M
	Gross Profit
199.46M	201.32M	208.30M	217.19M	182.08M
	EBIT
47.19M	65.44M	99.06M	95.09M	47.84M
	EBITDA
47.19M	124.10M	140.86M	158.19M	-38.28M
	Net Income Common Stockholders
24.25M	40.36M	66.17M	57.31M	-79.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.07M	34.89M	112.09M	140.74M	73.95M
	Total Assets
1.32B	1.34B	1.30B	1.30B	1.19B
	Total Debt
44.72M	443.25M	444.02M	445.72M	384.64M
	Net Debt
21.65M	408.36M	331.93M	304.98M	310.69M
	Total Liabilities
656.88M	658.71M	653.17M	672.79M	609.63M
	Stockholders Equity
667.30M	682.95M	651.83M	630.85M	584.25M
Cash Flow		Free Cash Flow
12.82M	33.97M	26.61M	89.16M	86.93M
	Operating Cash Flow
63.78M	88.16M	72.57M	134.22M	127.41M
	Investing Cash Flow
-46.96M	-134.42M	-55.04M	-79.18M	-232.07M
	Financing Cash Flow
-28.64M	-30.94M	-46.18M	11.75M	6.14M

Trimas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRS, the sentiment is Negative. The current price of 21.39 is below the 20-day moving average (MA) of 21.51, below the 50-day MA of 22.62, and below the 200-day MA of 24.63, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 44.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRS.

Trimas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRS	65 Neutral	$870.92M	36.21	3.59%	0.76%	3.52%	-38.88%
SEE	65 Neutral	$4.08B	15.05	45.91%	2.98%	-1.75%	-21.15%
AMBP	64 Neutral	$2.15B	―	-69.06%	14.49%	2.00%	46.00%
SON	62 Neutral	$4.35B	26.73	6.42%	4.59%	-6.93%	-65.66%
MYE	60 Neutral	$384.15M	53.66	2.53%	5.23%	2.86%	-85.38%
OI	60 Neutral	$1.85B	―	-7.89%	―	-8.09%	-1.97%
Sector *	60 Neutral	$6.78B	11.63	3.24%	4.20%	2.36%	-21.91%

Trimas Corporate Events

TriMas Announces CFO Resignation and Interim Appointment

On March 14, 2025, TriMas Corporation announced the resignation of its Chief Financial Officer, Scott A. Mell, effective March 20, 2025. His departure is not due to any disagreements with the company. Teresa M. Finley, a current board member with extensive financial expertise, has been appointed as the interim CFO to ensure continuity in strategic momentum and financial operations. Her appointment aims to enhance shareholder value and maintain the company’s trajectory. Additionally, board member Jeffrey M. Greene will not seek re-election at the upcoming annual meeting in May 2025.

TriMas Announces CEO Transition and Retention Program

TriMas Corporation has announced the planned transition of its President and CEO, with a focus on retaining key officers during this period. On February 11, 2025, the Board and its Compensation Committee implemented an executive retention program to support continuity, granting special retention awards and restricted stock units to key executives. This initiative is aimed at ensuring stability within the company’s leadership team amid the transition, with specific awards and conditions for retention detailed.

TriMas Appoints Shawn Sedaghat as Independent Director

On February 10, 2025, TriMas Corporation appointed Shawn Sedaghat as a Class III director, recognizing him as an independent director under NASDAQ standards. Sedaghat, with extensive experience in the packaging industry, joins the Governance and Nominating Committee, enhancing the board’s expertise and potentially influencing TriMas’ strategic direction.