Trane Technologies PLC (TT, Financial), a prominent player in the construction industry, is currently trading at $206.39 with a market capitalization of $47.07 billion. The company's stock has seen a gain of 3.7% today and an impressive 8.37% over the past four weeks. According to the GF Score, Trane Technologies PLC ranks at 87 out of 100, indicating good outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which evaluates a company's financial strength, profitability, growth, GF value, and momentum.
Financial Strength Analysis
Trane Technologies PLC has a Financial Strength Rank of 6/10. This rank is determined by several factors, including the company's debt burden, debt to revenue ratio, and Altman Z-Score. Trane Technologies PLC has an interest coverage of 11.05, indicating a low debt burden. The company's debt to revenue ratio is 0.30, and its Altman Z score is 4.39, both of which further attest to its financial strength.
Profitability Rank Analysis
The company's Profitability Rank is 8/10, indicating high profitability. This rank is determined by factors such as operating margin, Piotroski F-Score, trend of operating margin, consistency of profitability, and predictability rank. Trane Technologies PLC has an operating margin of 15.26% and a Piotroski F-Score of 6. The company's operating margin has been trending upwards over the past five years, and it has consistently been profitable over the past decade.
Growth Rank Analysis
Trane Technologies PLC has a Growth Rank of 8/10, indicating strong growth potential. The company's 5-year revenue growth rate is 4.50%, and its 3-year revenue growth rate is 8.40%. Additionally, the company's 5-year EBITDA growth rate is 8.70%, further demonstrating its robust growth.
GF Value Rank Analysis
The company's GF Value Rank is 5/10, suggesting that the stock is fairly valued. This rank is determined by the price-to-GF-Value ratio, a proprietary metric calculated based on historical multiples and an adjustment factor based on a company's past returns and growth.
Momentum Rank Analysis
Trane Technologies PLC has a Momentum Rank of 9/10, indicating strong momentum. This rank is determined using the standardized momentum ratio and other momentum indicators.
Competitor Analysis
Trane Technologies PLC's main competitors in the construction industry include Johnson Controls International PLC (GF Score: 85), Carrier Global Corp (GF Score: 66), and Builders FirstSource Inc (GF Score: 77). Compared to these competitors, Trane Technologies PLC has a higher GF Score, indicating stronger performance potential. More details about these competitors can be found here.
Conclusion
In conclusion, Trane Technologies PLC's overall GF Score of 87 suggests good outperformance potential. The company's strong financial strength, high profitability, robust growth, fair valuation, and strong momentum make it a compelling choice for investors. Based on its GF Score, Trane Technologies PLC is expected to perform well in the future.
