Price to Operating Profit (P/OP)
since 2005
Calculation
Trane Technologies plc, P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 10, 2023 | 17.34 | = | 183.14 | ÷ | 10.56 | 10.56 | = | 2,418,900 | ÷ | 229,074,725 | |
| Feb 7, 2022 | 18.12 | = | 156.97 | ÷ | 8.66 | 8.66 | = | 2,023,300 | ÷ | 233,538,091 | |
| Feb 9, 2021 | 22.67 | = | 145.71 | ÷ | 6.43 | 6.43 | = | 1,532,800 | ÷ | 238,428,700 | |
| Feb 18, 2020 | 17.13 | = | 144.97 | ÷ | 8.46 | 8.46 | = | 2,017,600 | ÷ | 238,401,033 | |
| Feb 12, 2019 | 13.10 | = | 103.75 | ÷ | 7.92 | 7.92 | = | 1,917,400 | ÷ | 242,168,631 | |
| Feb 12, 2018 | 13.64 | = | 90.91 | ÷ | 6.66 | 6.66 | = | 1,665,300 | ÷ | 249,889,299 | |
| Feb 13, 2017 | 13.52 | = | 81.98 | ÷ | 6.06 | 6.06 | = | 1,573,100 | ÷ | 259,508,972 | |
| Feb 12, 2016 | 9.04 | = | 51.32 | ÷ | 5.68 | 5.68 | = | 1,458,000 | ÷ | 256,847,948 | |
| Feb 13, 2015 | 12.69 | = | 67.69 | ÷ | 5.33 | 5.33 | = | 1,404,700 | ÷ | 263,321,574 | |
| Feb 14, 2014 | 14.70 | = | 58.43 | ÷ | 3.97 | 3.97 | = | 1,105,000 | ÷ | 278,035,707 | |
| Feb 14, 2013 | 10.44 | = | 53.03 | ÷ | 5.08 | 5.08 | = | 1,505,200 | ÷ | 296,317,386 | |
| Feb 21, 2012 | 14.17 | = | 40.99 | ÷ | 2.89 | 2.89 | = | 860,300 | ÷ | 297,375,890 | |
| Feb 22, 2011 | 12.18 | = | 46.11 | ÷ | 3.79 | 3.79 | = | 1,247,500 | ÷ | 329,577,804 | |
| Feb 26, 2010 | 12.17 | = | 31.91 | ÷ | 2.62 | 2.62 | = | 841,600 | ÷ | 321,072,029 | |
| Mar 2, 2009 | — | = | 12.99 | ÷ | -8.07 | -8.07 | = | -2,573,800 | ÷ | 318,864,140 | |
| Feb 29, 2008 | 10.79 | = | 41.86 | ÷ | 3.88 | 3.88 | = | 1,057,800 | ÷ | 272,645,080 | |
| Mar 1, 2007 | 9.20 | = | 43.08 | ÷ | 4.68 | 4.68 | = | 1,440,800 | ÷ | 307,801,047 | |
| Mar 1, 2006 | 10.09 | = | 41.96 | ÷ | 4.16 | 4.16 | = | 1,361,800 | ÷ | 327,478,397 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Trane Technologies plc Annual Report.
The analysis of the financial data over the period from 2006 to 2023 reveals notable fluctuations and trends in share price, operating profit per share, and the price-to-operating profit ratio (P/OP).
- Share Price
- The share price exhibited moderate stability in the early years, maintaining levels slightly above 40 US dollars between 2006 and 2008. A significant decline occurred in 2009, where the share price dropped sharply to 12.99 US dollars, indicating a possible market downturn or company-specific challenges during that period. Subsequently, the share price demonstrated a strong recovery and a consistent upward trajectory, reaching 183.14 US dollars by 2023, which marks substantial growth and enhanced investor confidence over the long term.
- Operating Profit Per Share
- Operating profit per share showed variability, starting at 4.16 US dollars in 2006 and fluctuating in the subsequent years. A marked negative value of -8.07 US dollars in 2009 reflects a significant operational setback during that fiscal year. Following this downturn, the operating profit per share rebounded robustly and generally increased over time, peaking at 10.56 US dollars in 2023. This upward trend suggests improvement in operational efficiency and profitability, notwithstanding a moderate dip to 6.43 US dollars in 2021.
- Price-to-Operating Profit Ratio (P/OP)
- The P/OP ratio varied considerably across the years, indicating shifts in market valuation relative to operating profit. Early years showed moderate ratios between 9.2 and 14.17, with data missing for 2009 likely due to negative operating profit. The ratio surged to a high of 22.67 in 2021, suggesting elevated market expectations or possibly share price outpacing profit growth during that year. In the following years, the ratio decreased slightly but remained elevated above 17, implying sustained higher market valuation relative to operating profits toward the end of the period.
Overall, the data reflects a period of significant challenges around 2009, followed by strong recovery and growth in both share price and operating profit per share. The elevated P/OP ratios in recent years denote increased market optimism or premium valuation of the company’s operating earnings. These patterns suggest enhanced financial health and investor sentiment in the latest periods analyzed.
Comparison to Competitors
Trane Technologies plc, P/OP, long-term trends, comparison to competitors
| Trane Technologies plc | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Feb 10, 2023 | 17.34 | — | 16.25 | 14.06 | 26.48 |
| Feb 7, 2022 | 18.12 | — | 15.87 | 11.56 | 28.68 |
| Feb 9, 2021 | 22.67 | — | 24.23 | 10.63 | — |
| Feb 18, 2020 | 17.13 | — | 9.08 | 14.49 | 15.07 |
| Feb 12, 2019 | 13.10 | 19.08 | 9.20 | 11.62 | 12.16 |
| Feb 12, 2018 | 13.64 | 19.69 | 21.70 | 16.47 | 11.53 |
| Feb 13, 2017 | 13.52 | 17.20 | 116.61 | 13.51 | 10.86 |
| Feb 12, 2016 | 9.04 | 10.36 | 11.66 | 12.17 | 9.71 |
| Feb 13, 2015 | 12.69 | 13.96 | 9.71 | 10.89 | 11.15 |
| Feb 14, 2014 | 14.70 | 14.75 | 10.94 | 11.62 | 10.88 |
| Feb 14, 2013 | 10.44 | 9.09 | 7.30 | 6.40 | 10.73 |
| Feb 21, 2012 | 14.17 | 9.69 | 10.41 | 7.21 | 9.40 |
| Feb 22, 2011 | 12.18 | 10.76 | 16.44 | 6.84 | 10.86 |
| Feb 26, 2010 | 12.17 | 20.91 | 63.07 | 6.47 | 9.67 |
| Mar 2, 2009 | — | 7.87 | 3.61 | 5.31 | 5.88 |
| Feb 29, 2008 | 10.79 | 11.17 | 9.03 | 9.48 | 9.95 |
| Mar 1, 2007 | 9.20 | 23.81 | 8.83 | 10.84 | 11.11 |
| Mar 1, 2006 | 10.09 | 20.69 | 12.95 | 10.66 | 11.11 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).