Triton International Ltd.’s 7.625% Series F Cumulative Preferred Shares: An In-depth Analysis
Triton International Ltd. (TRTN), a leading global provider of packaging and recycling solutions, has a preferred stock offering that has been gaining attention in the financial market. The 7.625% Series F Cumulative Preferred Shares (TRTN-F) are currently trading at $24.78, offering a current yield of 7.69% and a yield to call of 8.13%.
Financial Metrics
The significant leverage in Triton’s capital structure is reflected in the company’s financial metrics. TRTN’s debt-to-equity ratio stands at 3.81, indicating a higher level of financial risk. However, the company’s net income of $314.3 million provides a sufficient buffer for preferred dividends and interest payments. The coverage ratio, which measures the company’s ability to pay its debt obligations, is 3.28.
Comparison with Triton’s Other Preferred Stocks
In terms of relative value, TRTN-F is fairly priced among Triton’s other preferred stocks. For instance, the 6.25% Series E Cumulative Preferred Shares (TRTN-E) have a current yield of 6.44% and a yield to call of 6.88%, while the 6.125% Series G Cumulative Preferred Shares (TRTN-G) offer a current yield of 6.27% and a yield to call of 6.63%. Thus, TRTN-F’s slightly higher yields do not make it stand out significantly from Triton’s other preferred stock offerings.
Sector and Broader Market Comparisons
When compared to the broader packaging industry and the financial market as a whole, TRTN-F’s yields are in line with the sector average and slightly below the broader market average. For instance, the average yield for the packaging industry is around 7.5%, while the average yield for the broader financial market is around 8%. Therefore, TRTN-F does not offer a compelling yield premium compared to its peers or the market.
Impact on Individual Investors
For individual investors seeking income from their preferred stock investments, TRTN-F may not be an attractive option due to its relatively low yield premium compared to its peers and the broader market. However, investors who are willing to accept a lower yield for a more stable and reliable income stream may find TRTN-F appealing. The company’s strong net income and coverage ratio suggest that it is able to meet its dividend and interest payments, making TRTN-F a potentially low-risk investment option.
Impact on the World
From a global perspective, the performance of TRTN-F and other preferred stocks like it may have limited impact on the world economy. While the packaging industry and financial markets will be affected by the overall economic conditions, the impact of any individual preferred stock’s performance on the global economy is likely to be minimal.
Conclusion
In summary, Triton International Ltd.’s 7.625% Series F Cumulative Preferred Shares (TRTN-F) offer a current yield of 7.69% and a yield to call of 8.13%. While the stock’s financial metrics suggest a relatively stable income stream, its yields are in line with the sector and broader market averages, making it a fairly priced but unremarkable investment option. For individual investors, the decision to invest in TRTN-F will depend on their risk tolerance and income goals. From a global perspective, the impact of TRTN-F’s performance on the world economy is likely to be minimal.
- Triton International Ltd.’s 7.625% Series F Cumulative Preferred Shares (TRTN-F) offer a current yield of 7.69% and a yield to call of 8.13%.
- The company’s net income and coverage ratio suggest a stable income stream.
- TRTN-F is fairly priced compared to Triton’s other preferred stocks and the broader market.
- Individual investors should consider their risk tolerance and income goals when deciding whether to invest in TRTN-F.
- The impact of TRTN-F’s performance on the world economy is likely to be minimal.
