TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TT - IE00BK9ZQ967 - Common Stock
401.43 USD
-3.92 (-0.97%)
401.43 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to TT. 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. TT is quite expensive at the moment. It does show a decent growth rate. These ratings could make TT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year TT was profitable.
In the past year TT had a positive cash flow from operations.
TT had positive earnings in each of the past 5 years.
TT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
TT has a Return On Assets of 13.72%. This is amongst the best in the industry. TT outperforms 85.37% of its industry peers.
TT has a better Return On Equity (35.21%) than 92.68% of its industry peers.
TT has a better Return On Invested Capital (21.47%) than 90.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TT is significantly above the industry average of 12.44%.
The last Return On Invested Capital (21.47%) for TT is above the 3 year average (17.76%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 13.93%, TT is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
TT's Profit Margin has improved in the last couple of years.
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's Gross Margin of 36.42% is fine compared to the rest of the industry. TT outperforms 63.41% of its industry peers.
In the last couple of years the Gross Margin of TT has grown nicely.
| 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
TT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
TT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, TT has less shares outstanding
The debt/assets ratio for TT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.48 indicates that TT is not in any danger for bankruptcy at the moment.
TT has a better Altman-Z score (6.48) than 75.61% of its industry peers.
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's Debt to FCF ratio of 1.82 is fine compared to the rest of the industry. TT outperforms 75.61% of its industry peers.
TT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
TT has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 6.48 |
ROIC/WACC2.93
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TT should not have too much problems paying 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.
A Quick Ratio of 0.84 indicates that TT may have some problems paying its short term obligations.
TT has a Quick ratio of 0.84. This is in the lower half of the industry: TT underperforms 78.05% of its industry peers.
The current and quick ratio evaluation for TT is rather negative, while it does have 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.
Measured over the past years, TT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.99% on average per year.
Looking at the last year, TT shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
TT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.69% yearly.
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
TT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.27% yearly.
Based on estimates for the next years, TT will show a small growth in Revenue. The Revenue will grow by 7.20% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.31, TT can be considered very expensive at the moment.
TT's Price/Earnings ratio is a bit more expensive when compared to the industry. TT is more expensive than 73.17% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, TT is valued at the same level.
The Price/Forward Earnings ratio is 26.27, which means the current valuation is very expensive for TT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 70.73% of the companies listed in the same industry.
TT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 75.61% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 60.98% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.15 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
TT's 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.
A more expensive valuation may be justified as TT's earnings are expected to grow with 15.45% in the coming years.
PEG (NY)1.59
PEG (5Y)2.61
EPS Next 2Y16.69%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
TT has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 1.31, TT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, TT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of TT is nicely growing with an annual growth rate of 9.56%!
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%
401.43
-3.92 (-0.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-1.9%
Ins Owners0.26%
Ins Owner Change0.24%
Market Cap89.01B
Revenue(TTM)21.05B
Net Income(TTM)2.93B
Analysts71.18
Price Target491.58 (22.46%)
Short Float %1.25%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
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)5.21%
PT rev (3m)4.56%
EPS NQ rev (1m)-1.58%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)0.36%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-4.1%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.27 | ||
| P/S | 4.23 | ||
| P/FCF | 35.15 | ||
| P/OCF | 30.32 | ||
| P/B | 10.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.52 |
EPS(TTM)12.82
EY3.19%
EPS(NY)15.28
Fwd EY3.81%
FCF(TTM)11.42
FCFY2.85%
OCF(TTM)13.24
OCFY3.3%
SpS94.94
BVpS37.55
TBVpS-6.27
PEG (NY)1.59
PEG (5Y)2.61
Graham Number104.07
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 | 6.48 |
F-Score8
WACC7.33%
ROIC/WACC2.93
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 31.31 and the Price/Book (PB) ratio is 10.69.
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%.