Is NYSE:TT a Suitable Choice 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.

• TRANE TECHNOLOGIES PLC has shown strong performance in revenue growth over the past 5 years, with a 7.45% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 82.5%, TRANE TECHNOLOGIES PLC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• TRANE TECHNOLOGIES PLC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 2.1, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• The Profit Quality (5-year) of TRANE TECHNOLOGIES PLC stands at 107.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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 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.

Fundamental Analysis Observations

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 5 out of 10 to TT. TT was compared to 40 industry peers in the Building Products industry. While TT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. TT is valied quite expensively at the moment, while it does show a decent growth rate.

For an up to date full fundamental analysis you can check the fundamental report of TT

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

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.