Trane Technologies may be undervalued with mixed growth prospects, but the 19 analysts following the company give it an rating of hold. Their target prices range from $254.0 to $502.0 per share, for an average of $436.44. At today's price of $429.81, Trane Technologies is trading -1.52% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. Based in Swords, Ireland, the Large-Cap Industrials company has 45,000 full time employees. Trane Technologies has offered a 0.7% dividend yield over the last 12 months.
Trane Technologies has a trailing twelve month P/E ratio of 35.4, compared to an average of 24.03 for the Industrials sector. Considering its EPS guidance of $12.65, the company has a forward P/E ratio of 34.0.
Furthermore, Trane Technologies is overpriced compared to its book value, since its P/B ratio of 12.82 is higher than the sector average of 2.89. The company's shares are currently 373.0% below their Graham number, indicating that its shares have a margin of safety.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $13,076 | $12,455 | $14,136 | $15,992 | $17,678 | $19,838 |
| Operating Margins | 13% | 12% | 14% | 15% | 16% | 18% |
| Net Margins | 11% | 7% | 10% | 11% | 11% | 13% |
| Net Income (M) | $1,411 | $855 | $1,423 | $1,756 | $2,024 | $2,568 |
| Net Interest Expense (M) | $243 | $249 | $234 | $224 | $234 | $238 |
| Depreciation & Amort. (M) | $289 | $294 | $299 | $324 | $348 | $194 |
| Diluted Shares (M) | 244 | 243 | 242 | 235 | 231 | 228 |
| Earnings Per Share | $5.77 | $3.52 | $5.87 | $7.48 | $8.77 | $11.24 |
| EPS Growth | n/a | -38.99% | 66.76% | 27.43% | 17.25% | 28.16% |
| Avg. Price | $109.99 | $109.35 | $173.01 | $146.9 | $229.34 | $433.23 |
| P/E Ratio | 18.83 | 30.72 | 29.03 | 19.46 | 25.91 | 38.17 |
| Free Cash Flow (M) | $1,714 | $1,289 | $1,365 | $1,212 | $2,089 | $2,775 |
| CAPEX (M) | $205 | $146 | $223 | $292 | $301 | $371 |
| EV / EBITDA | 16.12 | 15.78 | 19.07 | 14.21 | 17.59 | 27.61 |
| Total Debt (M) | $6,224 | $6,048 | $5,192 | $5,884 | $5,582 | $5,222 |
| Net Debt / EBITDA | 2.52 | 1.51 | 1.31 | 1.7 | 1.38 | 0.98 |
| Current Ratio | 1.77 | 1.59 | 1.36 | 1.12 | 1.13 | 1.21 |
