Trane Technologies Plc (TT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Lam Research Corp.

Applied Materials, Inc.

Parker-Hannifin Corp.

Xylem, Inc.

Trane Technologies Plc

Dover Corp.

GE Aerospace

Johnson Controls International Plc

Illinois Tool Works Inc.

Carrier Global Corp.

Ingersoll Rand, Inc.

Why is Trane Technologies Plc ?

High Management Efficiency with a high ROCE of 25.68%

Company has a low Debt to Equity ratio (avg) at times

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 25.68%

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 3,231.98 MM
ROCE(HY) Highest at 38.89%
DEBT-EQUITY RATIO (HY) Lowest at 49.03 %

With ROCE of 32.32%, it has a expensive valuation with a 9.65 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0.81%, its profits have risen by 26.2% ; the PEG ratio of the company is 1.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Trane Technologies Plc should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Trane Technologies Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Trane Technologies Plc

6.51%

0.85

28.49%

S&P 500

20.34%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.35%

EBIT Growth (5y)

19.96%

EBIT to Interest (avg)

11.20

Debt to EBITDA (avg)

1.22

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

1.57

Tax Ratio

19.08%

Dividend Payout Ratio

28.97%

Pledged Shares

Institutional Holding

90.66%

ROCE (avg)

25.68%

ROE (avg)

28.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

11.75

EV to EBIT

26.11

EV to EBITDA

23.89

EV to Capital Employed

8.53

EV to Sales

4.90

PEG Ratio

2.06

Dividend Yield

0.86%

ROCE (Latest)

32.66%

ROE (Latest)

34.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 3,579.2 MM

DIVIDEND PER SHARE(HY)

Highest at USD 5.52

DEBT-EQUITY RATIO (HY)

Lowest at 41.23 %

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,575.72

OPERATING PROFIT(Q)

Lowest at USD 876.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.63 %

PRE-TAX PROFIT(Q)

Lowest at USD 712.1 MM

NET PROFIT(Q)

Lowest at USD 575.09 MM

EPS(Q)

Lowest at USD 2.62

Here's what is working for Trane Technologies Plc

Operating Cash Flow

Highest at USD 3,579.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Dividend per share

Highest at USD 5.52 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Debt-Equity Ratio

Lowest at 41.23 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at USD 101.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Trane Technologies Plc

Interest Coverage Ratio

Lowest at 1,575.72

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 876.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 17.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 712.1 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 712.1 MM has Fallen at -23.3%

over average net sales of the previous four periods of USD 928.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 575.09 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 575.09 MM has Fallen at -22.92%

over average net sales of the previous four periods of USD 746.06 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 2.62

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)