Price to FCFE (P/FCFE)
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
Trane Technologies plc, FCFE calculation
US$ in thousands
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).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities showed considerable growth from 2018 to 2019, increasing from 1,474,500 thousand US dollars to 1,956,300 thousand US dollars. However, in 2020, there was a decline to 1,766,200 thousand US dollars, followed by a continued decrease to 1,594,400 thousand US dollars in 2021. In 2022, the figure partially recovered, rising slightly to 1,698,700 thousand US dollars. Overall, the trend indicates initial growth in cash generation from operations, with a dip during the middle years, then a modest upward correction in the latest period.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity exhibited more volatility over the time frame. In 2018, the FCFE was 1,136,600 thousand US dollars, which surged dramatically to 3,183,300 thousand US dollars in 2019. This was followed by a sharp decrease in 2020, declining to 1,309,000 thousand US dollars. The downward trend continued in 2021, reaching the lowest point of 951,300 thousand US dollars during this period. In 2022, a recovery occurred with FCFE increasing to 1,404,900 thousand US dollars. The data reflects significant fluctuations in distributable cash to equity holders, with a peak in 2019 and a trough in 2021, before improving again.
- Summary of Trends
- Both net cash from operating activities and free cash flow to equity demonstrate variable performance across the five-year span. The operating cash flow shows a general increase initially but experiences a decline and partial recovery thereafter. Free cash flow to equity experienced greater variability with a pronounced peak in 2019 and a substantial drop in the subsequent years, partially rebounding in the final year. These patterns may indicate varying operational efficiency, capital expenditure activity, or changes in working capital management affecting cash availability to shareholders.
Price to FCFE Ratio, Current
Trane Technologies plc, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2022-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Trane Technologies plc, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
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.
3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Trane Technologies plc Annual Report.
5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price demonstrated a consistent upward trajectory over the five-year period. It increased from $103.75 in 2018 to $183.14 in 2022, representing significant growth. The most notable year-on-year gain occurred between 2021 and 2022.
- Free Cash Flow to Equity (FCFE) per Share Trend
- FCFE per share exhibited considerable volatility. After a strong rise from $4.69 in 2018 to $13.35 in 2019, it declined sharply to $5.49 in 2020 and continued to decrease to $4.07 in 2021. In 2022, there was a rebound to $6.13, but the value remained below the 2019 peak.
- Price to FCFE (P/FCFE) Ratio Trend
- The P/FCFE ratio fluctuated widely, moving inversely to FCFE per share for the most part. It declined from 22.11 in 2018 to 10.86 in 2019, corresponding with the spike in FCFE per share that year. Subsequently, the ratio increased sharply to 26.54 in 2020 and further to a high of 38.54 in 2021, reflecting reduced FCFE levels despite increasing share prices. In 2022, the ratio decreased to 29.86, in line with the partial recovery in FCFE per share and continued rise in share price.
- Insights
- The data suggests that while the share price has steadily appreciated, the FCFE per share has been volatile, which has led to significant fluctuations in the valuation multiples. The elevated P/FCFE ratios in 2020 and 2021 indicate that the stock price was relatively high compared to free cash flows during those years, implying increased investor optimism or expectations of future growth despite lower current cash flows. The partial recovery in FCFE in 2022 along with a decrease in the P/FCFE ratio could indicate a rebalancing of market expectations in relation to underlying cash flow generation.