TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis
USA - NYSE:TT - IE00BK9ZQ967 - Common Stock
421.75 USD
+0.11 (+0.03%)
421.75 USD
0 (0%)
Taking everything into account, TT scores 7 out of 10 in our fundamental rating. TT was compared to 41 industry peers in the Building Products industry. TT gets an excellent profitability rating and is at the same time showing great financial health properties. TT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make TT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
TT had positive earnings in the past year.
In the past year TT had a positive cash flow from operations.
TT had positive earnings in each of the past 5 years.
Each year in the past 5 years TT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 13.72%, TT belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
TT has a Return On Equity of 35.21%. This is amongst the best in the industry. TT outperforms 92.68% of its industry peers.
TT's Return On Invested Capital of 21.47% is amongst the best of the industry. TT outperforms 90.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TT is significantly above the industry average of 12.54%.
The 3 year average ROIC (17.76%) for TT is below the current ROIC(21.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 35.21% | ||
| ROIC | 21.47% |
ROA(3y)10.97%
ROA(5y)9.1%
ROE(3y)30.74%
ROE(5y)25.66%
ROIC(3y)17.76%
ROIC(5y)15.01%
1.3 Margins
TT has a better Profit Margin (13.93%) than 70.73% of its industry peers.
In the last couple of years the Profit Margin of TT has grown nicely.
With a decent Operating Margin value of 18.79%, TT is doing good in the industry, outperforming 73.17% of the companies in the same industry.
TT's Operating Margin has improved in the last couple of years.
TT has a better Gross Margin (36.42%) than 63.41% of its industry peers.
TT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.79% | ||
| PM (TTM) | 13.93% | ||
| GM | 36.42% |
OM growth 3Y6.75%
OM growth 5Y6.01%
PM growth 3Y8.74%
PM growth 5Y3.71%
GM growth 3Y4.06%
GM growth 5Y2.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TT is creating value.
TT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for TT has been reduced compared to 5 years ago.
TT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.66 indicates that TT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.66, TT is doing good in the industry, outperforming 78.05% of the companies in the same industry.
TT has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
TT has a better Debt to FCF ratio (1.82) than 78.05% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that TT is not too dependend on debt financing.
TT has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: TT outperforms 56.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 6.66 |
ROIC/WACC2.9
WACC7.41%
2.3 Liquidity
TT has a Current Ratio of 1.20. This is a normal value and indicates that TT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.20, TT is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
TT has a Quick Ratio of 1.20. This is a bad value and indicates that TT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.84, TT is doing worse than 78.05% of the companies in the same industry.
TT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.92% over the past year.
TT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.99% yearly.
The Revenue has grown by 8.58% in the past year. This is quite good.
Measured over the past years, TT shows a quite strong growth in Revenue. The Revenue has been growing by 8.69% on average per year.
EPS 1Y (TTM)18.92%
EPS 3Y22.59%
EPS 5Y11.99%
EPS Q2Q%15.13%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y11.96%
Revenue growth 5Y8.69%
Sales Q2Q%5.54%
3.2 Future
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
TT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y19.68%
EPS Next 2Y16.69%
EPS Next 3Y15.45%
EPS Next 5Y10.27%
Revenue Next Year8.23%
Revenue Next 2Y7.92%
Revenue Next 3Y7.78%
Revenue Next 5Y7.2%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 32.90, TT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 75.61% of the companies listed in the same industry.
TT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 27.60, TT can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, TT is valued a bit more expensive than the industry average as 70.73% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 34.43. TT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 27.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TT is valued a bit more expensive than 73.17% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.05 | ||
| EV/EBITDA | 22.43 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TT may justify a higher PE ratio.
TT's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.67
PEG (5Y)2.74
EPS Next 2Y16.69%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
TT has a yearly dividend return of 0.86%, which is pretty low.
TT's Dividend Yield is a higher than the industry average which is at 1.32.
With a Dividend Yield of 0.86, TT pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
On average, the dividend of TT grows each year by 9.56%, which is quite nice.
TT has paid a dividend for at least 10 years, which is a reliable track record.
TT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.56%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
27.90% of the earnings are spent on dividend by TT. This is a low number and sustainable payout ratio.
The dividend of TT is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP27.9%
EPS Next 2Y16.69%
EPS Next 3Y15.45%
421.75
+0.11 (+0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-0.71%
Ins Owners0.26%
Ins Owner Change0.24%
Market Cap93.85B
Revenue(TTM)21.05B
Net Income(TTM)2.93B
Analysts71.18
Price Target466.17 (10.53%)
Short Float %1.33%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend3.35
Dividend Growth(5Y)9.56%
DP27.9%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.51%
Min EPS beat(2)-0.67%
Max EPS beat(2)-0.35%
EPS beat(4)1
Avg EPS beat(4)1.55%
Min EPS beat(4)-0.67%
Max EPS beat(4)7.49%
EPS beat(8)4
Avg EPS beat(8)2.85%
EPS beat(12)8
Avg EPS beat(12)3.02%
EPS beat(16)11
Avg EPS beat(16)3.16%
Revenue beat(2)0
Avg Revenue beat(2)-3.52%
Min Revenue beat(2)-3.65%
Max Revenue beat(2)-3.39%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.65%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)-0.23%
PT rev (3m)0.58%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-4.27%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)-2.74%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)-0.69%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.9 | ||
| Fwd PE | 27.6 | ||
| P/S | 4.46 | ||
| P/FCF | 37.05 | ||
| P/OCF | 31.97 | ||
| P/B | 11.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.43 |
EPS(TTM)12.82
EY3.04%
EPS(NY)15.28
Fwd EY3.62%
FCF(TTM)11.38
FCFY2.7%
OCF(TTM)13.19
OCFY3.13%
SpS94.6
BVpS37.42
TBVpS-6.24
PEG (NY)1.67
PEG (5Y)2.74
Graham Number103.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 35.21% | ||
| ROCE | 26.64% | ||
| ROIC | 21.47% | ||
| ROICexc | 23.24% | ||
| ROICexgc | 79.55% | ||
| OM | 18.79% | ||
| PM (TTM) | 13.93% | ||
| GM | 36.42% | ||
| FCFM | 12.03% |
ROA(3y)10.97%
ROA(5y)9.1%
ROE(3y)30.74%
ROE(5y)25.66%
ROIC(3y)17.76%
ROIC(5y)15.01%
ROICexc(3y)19.7%
ROICexc(5y)17.25%
ROICexgc(3y)86.55%
ROICexgc(5y)79.73%
ROCE(3y)22.03%
ROCE(5y)18.62%
ROICexgc growth 3Y9.37%
ROICexgc growth 5Y29.75%
ROICexc growth 3Y15.09%
ROICexc growth 5Y17.85%
OM growth 3Y6.75%
OM growth 5Y6.01%
PM growth 3Y8.74%
PM growth 5Y3.71%
GM growth 3Y4.06%
GM growth 5Y2.99%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 105.39% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.67% | ||
| Profit Quality | 86.39% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.66 |
F-Score8
WACC7.41%
ROIC/WACC2.9
Cap/Depr(3y)91.41%
Cap/Depr(5y)79.68%
Cap/Sales(3y)1.8%
Cap/Sales(5y)1.63%
Profit Quality(3y)93.42%
Profit Quality(5y)105.39%
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y22.59%
EPS 5Y11.99%
EPS Q2Q%15.13%
EPS Next Y19.68%
EPS Next 2Y16.69%
EPS Next 3Y15.45%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y11.96%
Revenue growth 5Y8.69%
Sales Q2Q%5.54%
Revenue Next Year8.23%
Revenue Next 2Y7.92%
Revenue Next 3Y7.78%
Revenue Next 5Y7.2%
EBIT growth 1Y17.03%
EBIT growth 3Y19.52%
EBIT growth 5Y15.23%
EBIT Next Year25.27%
EBIT Next 3Y14.95%
EBIT Next 5Y8.89%
FCF growth 1Y32.68%
FCF growth 3Y26.67%
FCF growth 5Y10.75%
OCF growth 1Y32.52%
OCF growth 3Y25.58%
OCF growth 5Y10.38%
TRANE TECHNOLOGIES PLC / TT FAQ
What is the fundamental rating for TT stock?
ChartMill assigns a fundamental rating of 7 / 10 to TT.
What is the valuation status for TT stock?
ChartMill assigns a valuation rating of 2 / 10 to TRANE TECHNOLOGIES PLC (TT). This can be considered as Overvalued.
What is the profitability of TT stock?
TRANE TECHNOLOGIES PLC (TT) has a profitability rating of 9 / 10.
What are the PE and PB ratios of TRANE TECHNOLOGIES PLC (TT) stock?
The Price/Earnings (PE) ratio for TRANE TECHNOLOGIES PLC (TT) is 32.9 and the Price/Book (PB) ratio is 11.27.
Is the dividend of TRANE TECHNOLOGIES PLC sustainable?
The dividend rating of TRANE TECHNOLOGIES PLC (TT) is 6 / 10 and the dividend payout ratio is 27.9%.