TRANE TECHNOLOGIES PLC (NYSE:TT) can be considered a quality stock. Here's why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if TRANE TECHNOLOGIES PLC (NYSE:TT) is suited for quality investing. Investors should of course do their own research, but we spotted TRANE TECHNOLOGIES PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

A Deep Dive into TRANE TECHNOLOGIES PLC's Quality Metrics.

• TRANE TECHNOLOGIES PLC has demonstrated significant revenue growth over the past 5 years, with a 7.45% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a robust ROIC excluding cash and goodwill at 82.5%, TRANE TECHNOLOGIES PLC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of TRANE TECHNOLOGIES PLC stands at 2.1, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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 superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NYSE:TT

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

Taking everything into account, TT scores 5 out of 10 in our fundamental rating. TT was compared to 40 industry peers in the Building Products industry. TT has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, TT is valued expensive at the moment.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.