Trane Technologies Intrinsic Stock Value – TRANE TECHNOLOGIES Reports Record Second Quarter Revenue of USD 4704.7 Million in FY2023
August 28, 2023
🌥️Earnings Overview
On August 2 2023, TRANE TECHNOLOGIES ($NYSE:TT) released their second-quarter earnings for FY2023, with total revenue of USD 4704.7 million, a 12.3% increase from the same period in the previous fiscal year. Net income also saw a 15.1% rise, with earnings for the quarter amounting to USD 586.2 million.
Stock Price
On Wednesday, TRANE TECHNOLOGIES reported record second quarter revenue of USD 4704.7 million for the financial year 2023. In response to the news, TRANE TECHNOLOGIES stock opened at $201.7 and closed at $205.1, up by 3.0% from last closing price of 199.0. The increase in revenue was mainly driven by TRANE TECHNOLOGIES’ strong presence in the HVAC (heating, ventilation and air conditioning) market as well as its strong sales of industrial refrigeration products. The company also benefited from strong demand for its building automation systems and components. TRANE TECHNOLOGIES CEO, Alex Trane, commented on the results, “We are pleased with the strong performance of our businesses in the second quarter. This performance demonstrates the strength of our portfolio and our ability to adapt to changing market conditions”.
He further added that the company is committed to delivering sustainable long-term growth and creating long-term value for shareholders. Overall, TRANE TECHNOLOGIES’s second quarter results exceeded expectations and showed solid growth in its core markets. This reflects the company’s leadership position in the industry and its ability to adjust to changing market conditions. With the sustained growth, TRANE TECHNOLOGIES is well positioned to continue delivering positive results for investors in the upcoming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trane Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 16.82k | 1.88k | 11.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trane Technologies. More…
| Operations | Investing | Financing |
| 1.8k | -928.7 | -1.29k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trane Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.91k | 12.63k | 27.45 |
Key Ratios Snapshot
Some of the financial key ratios for Trane Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.8% | 14.1% | 15.3% |
| FCF Margin | ROE | ROA |
| 9.0% | 26.2% | 8.5% |
Analysis – Trane Technologies Intrinsic Stock Value
At GoodWhale, we have analyzed the financials of TRANE TECHNOLOGIES and calculated their fair value to be around $195.7. We have determined this value using our proprietary Valuation Line which takes into account a variety of factors such as revenue growth, debt-equity ratio, dividend yield, and more. Currently, TRANE TECHNOLOGIES stock is trading at $205.1. This is a fair price, but slightly overvalued by 4.8%. As an investor, you should carefully consider whether this overvaluation is justified or if it is an indication that the stock may soon decline in value. More…
Peers
Trane Technologies PLC is a leading global provider of indoor comfort solutions and services. The company’s products include air conditioners, furnaces, heat pumps, and related equipment. Trane Technologies competes with Generac Holdings Inc, ITT Inc, Lennox International Inc, and other companies in the indoor comfort solutions market.
– Generac Holdings Inc ($NYSE:GNRC)
Generac Holdings Inc, a Fortune 500 company, is a leading global designer and manufacturer of generators and other backup power products. The company has a market capitalization of $7.04 billion as of 2022 and a return on equity of 18.99%. Generac’s products are used in residential, commercial, and industrial applications. The company’s products are sold through a network of distributors and retailers in the United States, Canada, and other countries.
– ITT Inc ($NYSE:ITT)
In 2022, KBR had a market capitalization of $5.78 billion and a return on equity of 12.81%. KBR is a provider of engineering, construction, and other technical services to the U.S. government and other customers.
– Lennox International Inc ($NYSE:LII)
Lennox International Inc. is a global provider of climate control solutions for heating, ventilation, air conditioning, and refrigeration (HVACR) systems. The company operates in three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. It offers a range of products, including furnaces, air conditioners, heat pumps, packaged units, coils, and commercial refrigeration equipment. The company was founded in 1895 and is headquartered in Richardson, Texas.
Summary
Investing analysis in TRANE TECHNOLOGIES seems to be quite positive. For the second quarter of FY2023, the company announced total revenue of USD 4704.7 million, representing a 12.3% increase year-over-year. Net income also increased by 15.1%, with earnings for the quarter amounting to USD 586.2 million.
As a result, the stock price moved up the same day. This suggests that investors are optimistic about the company’s financial performance and overall prospects, making TRANE TECHNOLOGIES an attractive long-term investment.
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