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Is Triton International Limited (NYSE:TRTN) Potentially Undervalued?

Simply Wall St

Triton International Limited (NYSE:TRTN), which is in the trade distributors business, and is based in Bermuda, saw a decent share price growth in the teens level on the NYSE over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Today I will analyse the most recent data on Triton International’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Triton International

Is Triton International still cheap?

Great news for investors – Triton International is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $80.51, but it is currently trading at US$40.50 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Triton International’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Triton International look like?

NYSE:TRTN Past and Future Earnings, January 17th 2020
NYSE:TRTN Past and Future Earnings, January 17th 2020

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. However, with a relatively muted profit growth of 2.4% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Triton International, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since TRTN is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on TRTN for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy TRTN. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Triton International. You can find everything you need to know about Triton International in the latest infographic research report. If you are no longer interested in Triton International, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.