NYSE
TT
Last Price
US $491.16
KEY FIGURES
MKT CAP
$105.6B
EPS
TTM
$12.99
PEG
TTM
5.06x
P/E
TTM
36.68x
P/S
TTM
4.95x
YIELD
0.83%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
34.71%
Return on equity
ROIC: 19.62%
Valuation History
36.7X
Price to Earnings
EV/EBITDA: 25.6X
Cash flow
Profit margin
11.35%
(FY vs FY)
EBITDA Y/Y
17.88%
(FY vs FY)
Cash flow Y/Y
16.88%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $491.16
-56.80%
Default assumptions
EBITDA Multiple
Fair Value
Market $491.16
-75.82%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Trane Technologies plc cash flow to debt ratio of 69.22% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Trane Technologies plc's free cash flow has increased 1.32% from $2.77G last year to $2.81G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Trane Technologies plc's debt to equity ratio is 0.54, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Trane Technologies plc's debt has decreased relative to shareholder equity from 0.72 last year to 0.54 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Trane Technologies plc has a net debt to EBITDA ratio of 0.68x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Trane Technologies plc's interest coverage ratio of 17.44 indicates that earnings with good margin can cover interest payments on company debt
Financial stability - Profit margin growth.
Trane Technologies plc's profit margin has increased (3.64%) in the last year from 12.94% to 13.42%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Trane Technologies plc's short-term assets of $7.86G exceed its short-term liabilities of $6.29G
Increasing performance - ROA.
Trane Technologies plc's return on assets of 12.74% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Trane Technologies plc's return on equity of 34.71%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Trane Technologies plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Trane Technologies plc had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Trane Technologies plc has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Trane Technologies plc has a free cash flow yield of 2.66%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Trane Technologies plc's yearly earnings has increased 13.66% since last year from $2.57G to $2.92G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Trane Technologies plc's yearly revenue has increased 7.48% since last year from $19.84G to $21.32G, signaling increasing performance
Increasing performance - ROIC.
ROIC 19.62% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Trane Technologies plc's 3-year revenue CAGR of 10.06% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Trane Technologies plc had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Trane Technologies plc had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Trane Technologies plc is overvalued relative to its fair value price of 212.20 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Trane Technologies plc has an earnings yield of 2.72%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Trane Technologies plc is overvalued relative to its fair value price of 118.77 based on EBITDA multiple model
Overvalued - EV/EBITDA.
Trane Technologies plc has an EV/EBITDA ratio of 25.60x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Overvalued - PEG ratio value.
Trane Technologies plc has a PEG-ratio over 1 which is considered overvalued
Overvalued - P/B ratio.
Trane Technologies plc has a price-to-book ratio of 12.38x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Trane Technologies plc has a price-to-sales ratio of 4.89x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue