Financials Trane Technologies plc

Equities

TT

IE00BK9ZQ967

Electrical Components & Equipment

Market Closed - Nyse Other stock markets 04:00:02 2024-05-14 pm EDT			5-day change	1st Jan Change
330.1 ^USD	+1.05%		+1.28%	+35.33%

May. 13	Vertical Research Adjusts Trane Technologies' Price Target to $335 From $280	MT
May. 07	Trane Technologies plc Provides Earnings Guidance for the Full Year 2024	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	31,677	34,857	47,990	38,712	55,501	74,710	-	-
Enterprise Value (EV) ¹	35,947	36,839	50,673	42,328	59,186	78,041	77,055	75,780
P/E ratio	23 x	41.2 x	33.9 x	22.2 x	27.4 x	31.6 x	28.3 x	25.2 x
Yield	1.59%	1.46%	1.17%	1.59%	-	0.98%	1.06%	1.13%
Capitalization / Revenue	1.91 x	2.8 x	3.39 x	2.42 x	3.14 x	3.89 x	3.66 x	3.43 x
EV / Revenue	2.17 x	2.96 x	3.58 x	2.65 x	3.35 x	4.06 x	3.77 x	3.48 x
EV / EBITDA	13.7 x	19.2 x	21.4 x	15.7 x	18.6 x	21.5 x	19.6 x	17.7 x
EV / FCF	21.6 x	28.6 x	37.1 x	34.9 x	28.3 x	33 x	29.1 x	26.8 x
FCF Yield	4.63%	3.5%	2.69%	2.86%	3.53%	3.03%	3.44%	3.73%
Price to Book	4.44 x	5.49 x	7.8 x	6.48 x	8.02 x	10.3 x	8.86 x	7.78 x
Nbr of stocks (in thousands)	238,317	240,125	237,540	230,307	227,557	226,352	-	-
Reference price ²	132.9	145.2	202.0	168.1	243.9	330.1	330.1	330.1
Announcement Date	1/29/20	2/5/21	1/31/22	2/2/23	2/1/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	16,599	12,455	14,136	15,992	17,678	19,214	20,437	21,762
EBITDA ¹	2,620	1,918	2,364	2,694	3,184	3,637	3,922	4,270
EBIT ¹	2,234	1,641	2,069	2,379	2,888	3,275	3,561	3,888
Operating Margin	13.46%	13.17%	14.63%	14.88%	16.34%	17.05%	17.43%	17.87%
Earnings before Tax (EBT) ¹	1,742	1,288	1,791	2,172	2,567	3,010	3,314	3,698
Net income ¹	1,411	854.9	1,444	1,756	2,024	2,385	2,633	2,922
Net margin	8.5%	6.86%	10.21%	10.98%	11.45%	12.41%	12.89%	13.43%
EPS ²	5.770	3.520	5.960	7.570	8.890	10.45	11.66	13.10
Free Cash Flow ¹	1,665	1,289	1,365	1,212	2,089	2,366	2,650	2,830
FCF margin	10.03%	10.35%	9.66%	7.58%	11.82%	12.31%	12.97%	13.01%
FCF Conversion (EBITDA)	63.56%	67.18%	57.76%	45%	65.6%	65.06%	67.56%	66.28%
FCF Conversion (Net income)	118.04%	150.75%	94.55%	69.01%	103.21%	99.2%	100.64%	96.86%
Dividend per Share ²	2.120	2.120	2.360	2.680	-	3.237	3.514	3.739
Announcement Date	1/29/20	2/5/21	1/31/22	2/2/23	2/1/24	-	-	-

¹USD in Million²USD

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	3,569	3,356	4,190	4,372	4,074	3,666	4,705	4,883	4,424	4,216	5,108	5,225	4,693	4,430	5,419
EBITDA ¹	525.4	461.5	785.5	809.1	637.8	542.4	926.8	954.4	760.7	706.1	1,034	1,055	829.6	766.4	1,097
EBIT ¹	446.9	384.9	707.3	728.8	558.1	472.4	848.5	879.2	688.4	639.6	943.6	964.1	739.9	674.4	1,020
Operating Margin	12.52%	11.47%	16.88%	16.67%	13.7%	12.89%	18.04%	18.01%	15.56%	15.17%	18.47%	18.45%	15.77%	15.22%	18.83%
Earnings before Tax (EBT) ¹	394.6	331.5	653.1	665	522.4	389.8	766.4	796.3	614.8	550.7	876.5	896.7	685.3	625.4	966.6
Net income ¹	325.8	260.2	509.3	547.9	439.1	307.1	586.2	626.3	504.3	436.3	695	709.9	536.9	494.7	765.8
Net margin	9.13%	7.75%	12.15%	12.53%	10.78%	8.38%	12.46%	12.83%	11.4%	10.35%	13.61%	13.59%	11.44%	11.17%	14.13%
EPS ²	1.350	1.130	2.160	2.380	1.910	1.350	2.570	2.740	2.230	1.920	3.044	3.115	2.373	2.190	3.400
Dividend per Share ²	0.5900	0.6700	0.6700	0.6700	0.6700	0.7500	-	0.7500	-	0.8400	0.8094	0.8237	0.8374	0.8977	0.8946
Announcement Date	1/31/22	5/4/22	8/3/22	11/2/22	2/2/23	5/3/23	8/2/23	11/1/23	2/1/24	4/30/24	-	-	-	-	-

¹USD in Million²USD

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	4,270	1,982	2,683	3,616	3,685	3,331	2,346	1,070
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	1.63 x	1.033 x	1.135 x	1.342 x	1.157 x	0.9159 x	0.598 x	0.2505 x
Free Cash Flow ¹	1,665	1,289	1,365	1,212	2,089	2,366	2,650	2,830
ROE (net income / shareholders' equity)	19.6%	15.8%	22.7%	28.4%	30.8%	32.6%	33.1%	31.5%
ROA (Net income/ Total Assets)	7.35%	5.61%	7.97%	9.72%	10.8%	12.3%	12.6%	13%
Assets ¹	19,203	15,249	18,109	18,071	18,737	19,422	20,879	22,421
Book Value Per Share ²	29.90	26.40	25.90	25.90	30.40	32.10	37.20	42.40
Cash Flow per Share ²	7.850	5.900	6.550	6.400	10.40	12.30	13.50	15.30
Capex ¹	254	146	223	291	301	347	354	381
Capex / Sales	1.53%	1.17%	1.58%	1.82%	1.7%	1.81%	1.73%	1.75%
Announcement Date	1/29/20	2/5/21	1/31/22	2/2/23	2/1/24	-	-	-

¹USD in Million²USD

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Trane Technologies plc

Trading Rating

Investor Rating

ESG Refinitiv

A-

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

330.1 USD

Average target price

314.8 USD

Spread / Average Target

-4.63%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Heating, Ventilation & Air Conditioning Systems

	1st Jan change	Capi.
TRANE TECHNOLOGIES PLC	+35.33%	74.71B
CARRIER GLOBAL CORPORATION	+13.07%	58.53B
DAIKIN INDUSTRIES, LTD.	+7.77%	46.53B
JOHNSON CONTROLS INTERNATIONAL PLC	+16.03%	45.06B
WATSCO, INC.	+13.07%	17.98B
LENNOX INTERNATIONAL INC.	+11.02%	17.7B
A. O. SMITH CORPORATION	+4.80%	12.67B
NIBE INDUSTRIER AB	-15.88%	11.22B
AAON, INC.	+2.07%	6.2B
NINGBO DEYE TECHNOLOGY GROUP CO., LTD.	+17.85%	5.88B

Heating, Ventilation & Air Conditioning Systems