Now trading at a price of $213.94, Trane Technologies has moved 0.2% so far today.
Trane Technologies returned gains of 31.0% last year, with its stock price reaching a high of $216.71 and a low of $159.02. Over the same period, the stock outperformed the S&P 500 index by 14.0%. More recently, the company's 50-day average price was $200.79. Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, custom, and custom and transport refrigeration in Ireland and internationally. Based in Swords, Ireland, the large-cap Industrials company has 39,000 full time employees. Trane Technologies has offered a 0.3% dividend yield over the last 12 months.
Growing Revenues With a Flat Capital Expenditure Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $12,344 | $13,076 | $12,455 | $14,136 | $15,992 | $16,816 |
| Operating Margins | 12.0% | 13.0% | 12.0% | 14.0% | 15.0% | 16.0% |
| Net Margins | 11.0% | 11.0% | 8.0% | 10.0% | 11.0% | 11.0% |
| Net Income (MM) | $1,358 | $1,428 | $991 | $1,457 | $1,796 | $1,923 |
| Net Interest Expense (MM) | $221 | $243 | $249 | $234 | $224 | $231 |
| Depreciation & Amort. (MM) | $282 | n/a | $294 | $299 | $324 | $335 |
| Earnings Per Share | $5.35 | $5.77 | $3.52 | $5.87 | $7.48 | $8.1 |
| Diluted Shares (MM) | 250 | 244 | 243 | 242 | 235 | 224 |
| Free Cash Flow (MM) | $1,123 | $1,714 | $1,620 | $1,371 | $1,407 | $1,537 |
| Capital Expenditures (MM) | $285 | $205 | $146 | $223 | $292 | $292 |
| Net Current Assets (MM) | -$5,118 | -$3,886 | -$4,824 | -$5,316 | -$5,597 | -$5,954 |
| Long Term Debt (MM) | $3,741 | $4,923 | $4,496 | $4,492 | $3,788 | $4,477 |
Trane Technologies has growing revenues and a flat capital expenditure trend, decent operating margins with a stable trend, and positive EPS growth. Furthermore, Trane Technologies has irregular cash flows and an average amount of debt.
The Market May Be Overvaluing Trane Technologies's Earnings and Assets:
Trane Technologies has a trailing twelve month P/E ratio of 24.5, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $9.75, the company has a forward P/E ratio of 20.6. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 7.2%. On this basis, the company's PEG ratio is 3.42, which suggests that it is overpriced. Furthermore, Trane Technologies is likely overvalued compared to the book value of its equity, since its P/B ratio of 7.36 is higher than the sector average of 3.78. The company's shares are currently trading 198.5% above their Graham number.
Analysts Give Trane Technologies an Average Rating of Hold:
The 17 analysts following Trane Technologies have set target prices ranging from $190.0 to $256.0 per share, for an average of $217.29 with a hold rating. As of April 2023, the company is trading -7.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Trane Technologies has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 88.0% of the company's shares, and the insider ownership rate stands at 0.32%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 9% stake in the company is worth $4,351,149,375.
