Examining the Quality Attributes of NYSE:TT.

In this article we will dive into TRANE TECHNOLOGIES PLC (NYSE:TT) as a possible candidate for quality investing. Investors should always do their own research, but we noticed TRANE TECHNOLOGIES PLC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:TT highlighted

• TRANE TECHNOLOGIES PLC has demonstrated significant revenue growth over the past 5 years, with a 7.45% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• The ROIC excluding cash and goodwill of TRANE TECHNOLOGIES PLC stands at 87.25%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 2.29, TRANE TECHNOLOGIES PLC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of TRANE TECHNOLOGIES PLC stands at 107.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• TRANE TECHNOLOGIES PLC has experienced impressive EBIT growth over the past 5 years, with 13.21% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, TRANE TECHNOLOGIES PLC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, TT scores 5 out of 10 in our fundamental rating. TT was compared to 45 industry peers in the Building Products industry. TT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, TT is valued expensive at the moment.

Check the latest full fundamental report of TT for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.