Why TRANE TECHNOLOGIES PLC (NYSE:TT) qualifies as a quality stock.

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.

Looking into the quality metrics of TRANE TECHNOLOGIES PLC

• Over the past 5 years, TRANE TECHNOLOGIES PLC has experienced impressive revenue growth, with 7.45% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 99.68%, 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.
• With a Debt/Free Cash Flow Ratio of 1.85, 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 robust Profit Quality (5-year) ratio of 107.0%, TRANE TECHNOLOGIES PLC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• TRANE TECHNOLOGIES PLC has experienced impressive EBIT growth over the past 5 years, with 13.21% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• 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

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, TT scores 6 out of 10 in our fundamental rating. TT was compared to 39 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make TT suitable for quality investing!

Our latest full fundamental report of TT contains the most current fundamental analsysis.

More quality stocks can be found 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.