Stock Analysis on Net
Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Trane Technologies plc, FCFE calculation

US$ in thousands

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Net earnings attributable to noncontrolling interests 18,200 13,200 15,100 17,600 19,900
Net noncash charges 474,100 400,900 552,500 587,400 436,800
Changes in other assets and liabilities, net of the effects of acquisitions (550,100) (243,100) 343,700 (59,600) (319,800)
Net cash provided by operating activities 1,698,700 1,594,400 1,766,200 1,956,300 1,474,500
Capital expenditures (291,800) (223,000) (146,200) (254,100) (365,600)
Proceeds from sale of property, plant and equipment 9,700 15,100 100 3,800 22,100
Short-term payments, net — — — — (6,400)
Proceeds from long-term debt — — — 1,497,900 1,147,000
Payments of long-term debt (9,600) (432,500) (307,500) (7,500) (1,123,000)
Debt issuance costs (2,100) (2,700) (3,600) (13,100) (12,000)
Free cash flow to equity (FCFE) 1,404,900 951,300 1,309,000 3,183,300 1,136,600

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Trane Technologies plc equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Trane Technologies plc FCFE decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Price to FCFE Ratio, Current

Trane Technologies plc, current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 228,051,842
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 1,404,900
FCFE per share 6.16
Current share price (P) 177.74
Valuation Ratio
P/FCFE 28.85
Benchmarks
P/FCFE, Competitors1
Boeing Co. —
Caterpillar Inc. 15.61
Eaton Corp. plc 38.48
General Electric Co. 265.18
Honeywell International Inc. 27.22
Lockheed Martin Corp. 13.83
RTX Corp. 7.98
P/FCFE, Sector
Capital Goods 31.49
P/FCFE, Industry
Industrials 30.13

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Trane Technologies plc, historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 229,074,725 233,538,091 238,428,700 238,401,033 242,168,631
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 1,404,900 951,300 1,309,000 3,183,300 1,136,600
FCFE per share3 6.13 4.07 5.49 13.35 4.69
Share price1, 4 183.14 156.97 145.71 144.97 103.75
Valuation Ratio
P/FCFE5 29.86 38.54 26.54 10.86 22.11
Benchmarks
P/FCFE, Competitors6
Boeing Co. 120.43 — 6.78 19.60 —
Caterpillar Inc. 24.03 16.36 25.22 11.07 —
Eaton Corp. plc 28.68 24.43 25.59 11.12 —
General Electric Co. 44.45 — — — —
Honeywell International Inc. 27.59 46.23 12.59 21.75 —
Lockheed Martin Corp. 11.63 14.65 15.57 28.62 —
RTX Corp. 26.71 35.07 — 28.09 —
P/FCFE, Sector
Capital Goods 25.94 — 74.91 27.54 —
P/FCFE, Industry
Industrials 25.07 — 40.69 26.97 —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,404,900,000 ÷ 229,074,725 = 6.13

4 Closing price as at the filing date of Trane Technologies plc Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 183.14 ÷ 6.13 = 29.86

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Trane Technologies plc P/FCFE ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.