TRANE TECHNOLOGIES PLC (TT) Fundamental Analysis & Valuation

NYSE:TT • IE00BK9ZQ967

Current stock price

410.23 USD
+3.1 (+0.76%)
At close:
410.23 USD
0 (0%)
After Hours:

This TT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. TT Profitability Analysis

1.1 Basic Checks

  • In the past year TT was profitable.
  • TT had a positive operating cash flow in the past year.
  • In the past 5 years TT has always been profitable.
  • In the past 5 years TT always reported a positive cash flow from operatings.
TT Yearly Net Income VS EBIT VS OCF VS FCFTT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • With an excellent Return On Assets value of 13.63%, TT belongs to the best of the industry, outperforming 88.10% of the companies in the same industry.
  • TT has a better Return On Equity (34.02%) than 90.48% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.16%, TT belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
  • TT had an Average Return On Invested Capital over the past 3 years of 19.58%. This is significantly above the industry average of 11.89%.
  • The last Return On Invested Capital (21.16%) for TT is above the 3 year average (19.58%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 13.63%
ROE 34.02%
ROIC 21.16%
ROA(3y)12.27%
ROA(5y)10.88%
ROE(3y)32.46%
ROE(5y)29.8%
ROIC(3y)19.58%
ROIC(5y)17.39%
TT Yearly ROA, ROE, ROICTT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 13.69%, TT is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
  • TT's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 18.61%, TT is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • TT's Operating Margin has improved in the last couple of years.
  • TT's Gross Margin of 36.16% is fine compared to the rest of the industry. TT outperforms 61.90% of its industry peers.
  • In the last couple of years the Gross Margin of TT has grown nicely.
Industry RankSector Rank
OM 18.61%
PM (TTM) 13.69%
GM 36.16%
OM growth 3Y7.15%
OM growth 5Y7.57%
PM growth 3Y7.6%
PM growth 5Y14.8%
GM growth 3Y5.21%
GM growth 5Y3.31%
TT Yearly Profit, Operating, Gross MarginsTT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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7

2. TT Health Analysis

2.1 Basic Checks

  • TT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • TT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, TT has less shares outstanding
  • TT has a better debt/assets ratio than last year.
TT Yearly Shares OutstandingTT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
TT Yearly Total Debt VS Total AssetsTT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • TT has an Altman-Z score of 6.59. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
  • TT's Altman-Z score of 6.59 is amongst the best of the industry. TT outperforms 83.33% of its industry peers.
  • TT has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
  • TT's Debt to FCF ratio of 1.64 is fine compared to the rest of the industry. TT outperforms 76.19% of its industry peers.
  • TT has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
  • TT's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. TT outperforms 59.52% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 1.64
Altman-Z 6.59
ROIC/WACC2.83
WACC7.48%
TT Yearly LT Debt VS Equity VS FCFTT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • TT has a Current Ratio of 1.25. This is a normal value and indicates that TT is financially healthy and should not expect problems in meeting its short term obligations.
  • TT's Current ratio of 1.25 is on the low side compared to the rest of the industry. TT is outperformed by 83.33% of its industry peers.
  • TT has a Quick Ratio of 1.25. This is a bad value and indicates that TT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • TT's Quick ratio of 0.92 is on the low side compared to the rest of the industry. TT is outperformed by 76.19% of its industry peers.
  • TT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.92
TT Yearly Current Assets VS Current LiabilitesTT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. TT Growth Analysis

3.1 Past

  • TT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.49%, which is quite good.
  • TT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.05% yearly.
  • The Revenue has been growing slightly by 7.48% in the past year.
  • Measured over the past years, TT shows a quite strong growth in Revenue. The Revenue has been growing by 11.35% on average per year.
EPS 1Y (TTM)16.49%
EPS 3Y21.04%
EPS 5Y24.05%
EPS Q2Q%9.58%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.56%

3.2 Future

  • Based on estimates for the next years, TT will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.99% on average per year.
  • TT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.65% yearly.
EPS Next Y16.65%
EPS Next 2Y15.11%
EPS Next 3Y14.28%
EPS Next 5Y15.99%
Revenue Next Year9.13%
Revenue Next 2Y8.58%
Revenue Next 3Y8.15%
Revenue Next 5Y9.65%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
TT Yearly Revenue VS EstimatesTT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10B 20B 30B
TT Yearly EPS VS EstimatesTT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20 25

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1

4. TT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 31.39, TT can be considered very expensive at the moment.
  • TT's Price/Earnings ratio is a bit more expensive when compared to the industry. TT is more expensive than 69.05% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.89, TT is valued a bit more expensive.
  • TT is valuated quite expensively with a Price/Forward Earnings ratio of 26.91.
  • TT's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. TT is more expensive than 66.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, TT is valued a bit more expensive.
Industry RankSector Rank
PE 31.39
Fwd PE 26.91
TT Price Earnings VS Forward Price EarningsTT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 69.05% of the companies listed in the same industry.
  • TT's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. TT is more expensive than 64.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 32.29
EV/EBITDA 21.4
TT Per share dataTT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates TT does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of TT may justify a higher PE ratio.
  • A more expensive valuation may be justified as TT's earnings are expected to grow with 14.28% in the coming years.
PEG (NY)1.89
PEG (5Y)1.31
EPS Next 2Y15.11%
EPS Next 3Y14.28%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. TT Dividend Analysis

5.1 Amount

  • TT has a Yearly Dividend Yield of 1.03%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.77, TT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, TT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.03%

5.2 History

  • On average, the dividend of TT grows each year by 12.04%, which is quite nice.
  • TT has paid a dividend for at least 10 years, which is a reliable track record.
  • TT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)12.04%
Div Incr Years14
Div Non Decr Years14
TT Yearly Dividends per shareTT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 28.69% of the earnings are spent on dividend by TT. This is a low number and sustainable payout ratio.
  • TT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP28.69%
EPS Next 2Y15.11%
EPS Next 3Y14.28%
TT Yearly Income VS Free CF VS DividendTT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
TT Dividend Payout.TT Dividend Payout, showing the Payout Ratio.TT Dividend Payout.PayoutRetained Earnings

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TT Fundamentals: All Metrics, Ratios and Statistics

TRANE TECHNOLOGIES PLC

NYSE:TT (3/27/2026, 8:04:00 PM)

After market: 410.23 0 (0%)

410.23

+3.1 (+0.76%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)N/A
Inst Owners90.05%
Inst Owner Change-0.63%
Ins Owners0.25%
Ins Owner Change1.77%
Market Cap90.80B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts75.15
Price Target490.06 (19.46%)
Short Float %1.41%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 1.03%
Yearly Dividend3.76
Dividend Growth(5Y)12.04%
DP28.69%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-06
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.8%
Min EPS beat(2)-1.24%
Max EPS beat(2)-0.35%
EPS beat(4)1
Avg EPS beat(4)1.31%
Min EPS beat(4)-1.24%
Max EPS beat(4)7.49%
EPS beat(8)4
Avg EPS beat(8)2.85%
EPS beat(12)7
Avg EPS beat(12)2.29%
EPS beat(16)10
Avg EPS beat(16)3.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.65%
Max Revenue beat(2)-1.78%
Revenue beat(4)1
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-3.65%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)3
Avg Revenue beat(12)-1.17%
Revenue beat(16)6
Avg Revenue beat(16)-0.56%
PT rev (1m)0%
PT rev (3m)0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.83%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.47%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.32%
Valuation
Industry RankSector Rank
PE 31.39
Fwd PE 26.91
P/S 4.26
P/FCF 32.29
P/OCF 28.42
P/B 10.58
P/tB N/A
EV/EBITDA 21.4
EPS(TTM)13.07
EY3.19%
EPS(NY)15.25
Fwd EY3.72%
FCF(TTM)12.7
FCFY3.1%
OCF(TTM)14.43
OCFY3.52%
SpS96.34
BVpS38.76
TBVpS-5.04
PEG (NY)1.89
PEG (5Y)1.31
Graham Number106.77
Profitability
Industry RankSector Rank
ROA 13.63%
ROE 34.02%
ROCE 26.22%
ROIC 21.16%
ROICexc 23.95%
ROICexgc 87.1%
OM 18.61%
PM (TTM) 13.69%
GM 36.16%
FCFM 13.19%
ROA(3y)12.27%
ROA(5y)10.88%
ROE(3y)32.46%
ROE(5y)29.8%
ROIC(3y)19.58%
ROIC(5y)17.39%
ROICexc(3y)21.89%
ROICexc(5y)19.6%
ROICexgc(3y)88.65%
ROICexgc(5y)83.58%
ROCE(3y)24.26%
ROCE(5y)21.54%
ROICexgc growth 3Y2.38%
ROICexgc growth 5Y4.95%
ROICexc growth 3Y11.08%
ROICexc growth 5Y14.19%
OM growth 3Y7.15%
OM growth 5Y7.57%
PM growth 3Y7.6%
PM growth 5Y14.8%
GM growth 3Y5.21%
GM growth 5Y3.31%
F-Score9
Asset Turnover1
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 1.64
Debt/EBITDA 0.9
Cap/Depr 101.78%
Cap/Sales 1.8%
Interest Coverage 17.87
Cash Conversion 73.54%
Profit Quality 96.33%
Current Ratio 1.25
Quick Ratio 0.92
Altman-Z 6.59
F-Score9
WACC7.48%
ROIC/WACC2.83
Cap/Depr(3y)95.28%
Cap/Depr(5y)90.1%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.75%
Profit Quality(3y)102.54%
Profit Quality(5y)94.51%
High Growth Momentum
Growth
EPS 1Y (TTM)16.49%
EPS 3Y21.04%
EPS 5Y24.05%
EPS Q2Q%9.58%
EPS Next Y16.65%
EPS Next 2Y15.11%
EPS Next 3Y14.28%
EPS Next 5Y15.99%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.56%
Revenue Next Year9.13%
Revenue Next 2Y8.58%
Revenue Next 3Y8.15%
Revenue Next 5Y9.65%
EBIT growth 1Y13.35%
EBIT growth 3Y17.93%
EBIT growth 5Y19.78%
EBIT Next Year20.15%
EBIT Next 3Y13.49%
EBIT Next 5Y14.81%
FCF growth 1Y1.32%
FCF growth 3Y32.37%
FCF growth 5Y16.88%
OCF growth 1Y1.55%
OCF growth 3Y28.54%
OCF growth 5Y17.36%

TRANE TECHNOLOGIES PLC / TT Fundamental Analysis FAQ

What is the fundamental rating for TT stock?

ChartMill assigns a fundamental rating of 6 / 10 to TT.


Can you provide the valuation status for TRANE TECHNOLOGIES PLC?

ChartMill assigns a valuation rating of 1 / 10 to TRANE TECHNOLOGIES PLC (TT). This can be considered as Overvalued.


What is the profitability of TT stock?

TRANE TECHNOLOGIES PLC (TT) has a profitability rating of 9 / 10.


Can you provide the financial health for TT stock?

The financial health rating of TRANE TECHNOLOGIES PLC (TT) is 7 / 10.


What is the expected EPS growth for TRANE TECHNOLOGIES PLC (TT) stock?

The Earnings per Share (EPS) of TRANE TECHNOLOGIES PLC (TT) is expected to grow by 16.65% in the next year.