Is NYSE:TT suited for quality investing?

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.

What matters for quality investors.

• The 5-year revenue growth of TRANE TECHNOLOGIES PLC has been remarkable, with 7.45% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• The ROIC excluding cash and goodwill of TRANE TECHNOLOGIES PLC stands at 82.5%, 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 2.1, 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.
• With a favorable Profit Quality (5-year) ratio of 107.0%, TRANE TECHNOLOGIES PLC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 13.21%, TRANE TECHNOLOGIES PLC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• TRANE TECHNOLOGIES PLC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Zooming in on the fundamentals.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to TT. TT was compared to 43 industry peers in the Building Products industry. While TT has a great profitability rating, there are some minor concerns on its financial health. TT is quite expensive at the moment. It does show a decent growth rate.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.