Why the quality investor may take a look at TRANE TECHNOLOGIES PLC (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.

Highlighting Notable Quality Metrics of TT.

• TT has achieved substantial revenue growth over the past 5 years, with a 8.69% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• TT exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 92.46% 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 1.72, TT 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.
• TT demonstrates consistent Profit Quality over the past 5 years, with a strong 105.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• TT has consistently achieved strong EBIT growth over the past 5 years, with a 15.23% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• TT 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 TT?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, TT scores 6 out of 10 in our fundamental rating. TT was compared to 41 industry peers in the Building Products industry. TT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, TT is valued expensive at the moment. This makes TT very considerable for quality investing!

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice. 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.