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Why NYSE:TT Stands Out as a Quality Stock.

By Mill Chart

Last update: Mar 20, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TRANE TECHNOLOGIES PLC (NYSE:TT) is suited for quality investing. Investors should of course do their own research, but we spotted TRANE TECHNOLOGIES PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • TRANE TECHNOLOGIES PLC has achieved substantial revenue growth over the past 5 years, with a 7.45% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • TRANE TECHNOLOGIES PLC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 87.25% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 2.29, TRANE TECHNOLOGIES PLC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • TRANE TECHNOLOGIES PLC exhibits impressive Profit Quality (5-year) with a 107.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • TRANE TECHNOLOGIES PLC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 13.21%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • TRANE TECHNOLOGIES PLC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

How does the complete fundamental picture look for NYSE:TT?

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall TT gets a fundamental rating of 5 out of 10. We evaluated TT against 45 industry peers in the Building Products industry. TT has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TT is valued expensive at the moment.

Our latest full fundamental report of TT contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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