TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TT - IE00BK9ZQ967 - Common Stock
389.84 USD
+4.62 (+1.2%)
389.84 USD
0 (0%)
Overall TT gets a fundamental rating of 7 out of 10. We evaluated TT against 41 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making TT a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, TT is valued expensive at the moment. These ratings would make TT suitable for quality investing!
1. Profitability
1.1 Basic Checks
TT had positive earnings in the past year.
TT had a positive operating cash flow in the past year.
In the past 5 years TT has always been profitable.
TT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of TT (13.72%) is better than 85.37% of its industry peers.
The Return On Equity of TT (35.21%) is better 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 12.58%.
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
With a decent Profit Margin value of 13.93%, TT is doing good in the industry, outperforming 70.73% of the companies in the same industry.
TT's Profit Margin has improved in the last couple of years.
TT has a Operating Margin of 18.79%. This is in the better half of the industry: TT outperforms 73.17% of its industry peers.
TT's Operating Margin has improved in the last couple of years.
The Gross Margin of TT (36.42%) is better than 63.41% of its industry peers.
TT's Gross Margin has improved in the last couple of years.
| 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.
TT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.27 indicates that TT is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.27, TT is doing good in the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of TT is 1.82, which is an excellent value as it means it would take TT, only 1.82 years of fcf income to pay off all of its debts.
TT has a better Debt to FCF ratio (1.82) than 75.61% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that TT is not too dependend on debt financing.
The Debt to Equity ratio of TT (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 6.27 |
ROIC/WACC2.93
WACC7.32%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TT should not have too much problems paying its short term obligations.
TT's Current ratio of 1.20 is on the low side compared to the rest of the industry. TT is outperformed by 82.93% of its industry peers.
TT has a Quick Ratio of 1.20. This is a bad value and indicates that TT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TT (0.84) is worse than 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
TT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
The Earnings Per Share has been growing by 11.99% on average over the past years. This is quite good.
Looking at the last year, TT shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
Measured over the past years, TT shows a quite strong growth in Revenue. The Revenue has been growing by 8.69% on average per year.
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
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y19.56%
EPS Next 2Y16.75%
EPS Next 3Y15.45%
EPS Next 5Y10.27%
Revenue Next Year7.75%
Revenue Next 2Y7.68%
Revenue Next 3Y7.59%
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
Based on the Price/Earnings ratio of 30.41, the valuation of TT can be described as expensive.
68.29% of the companies in the same industry are cheaper than TT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.38. TT is around the same levels.
TT is valuated quite expensively with a Price/Forward Earnings ratio of 25.49.
TT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TT is more expensive than 63.41% of the companies in the same industry.
TT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 25.49 |
4.2 Price Multiples
TT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TT is more expensive than 70.73% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as TT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.13 | ||
| EV/EBITDA | 20.49 |
4.3 Compensation for Growth
TT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
TT has an outstanding profitability rating, which 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)1.55
PEG (5Y)2.54
EPS Next 2Y16.75%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
TT has a yearly dividend return of 0.93%, which is pretty low.
TT's Dividend Yield is a higher than the industry average which is at 0.72.
Compared to an average S&P500 Dividend Yield of 1.87, TT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of TT grows each year by 9.56%, which is quite nice.
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 2Y16.75%
EPS Next 3Y15.45%
389.84
+4.62 (+1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.2%
Inst Owner Change-1.85%
Ins Owners0.25%
Ins Owner Change0.52%
Market Cap86.44B
Revenue(TTM)21.05B
Net Income(TTM)2.93B
Analysts72.73
Price Target492.2 (26.26%)
Short Float %1.33%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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)5.58%
PT rev (3m)4.83%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-3.55%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-3.67%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.41 | ||
| Fwd PE | 25.49 | ||
| P/S | 4.11 | ||
| P/FCF | 34.13 | ||
| P/OCF | 29.45 | ||
| P/B | 10.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.49 |
EPS(TTM)12.82
EY3.29%
EPS(NY)15.29
Fwd EY3.92%
FCF(TTM)11.42
FCFY2.93%
OCF(TTM)13.24
OCFY3.4%
SpS94.94
BVpS37.55
TBVpS-6.27
PEG (NY)1.55
PEG (5Y)2.54
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 | 6.27 |
F-Score8
WACC7.32%
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 Y19.56%
EPS Next 2Y16.75%
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 Year7.75%
Revenue Next 2Y7.68%
Revenue Next 3Y7.59%
Revenue Next 5Y7.2%
EBIT growth 1Y17.03%
EBIT growth 3Y19.52%
EBIT growth 5Y15.23%
EBIT Next Year24.93%
EBIT Next 3Y15.19%
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 30.41 and the Price/Book (PB) ratio is 10.38.
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%.