TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TT - IE00BK9ZQ967 - Common Stock
395.33 USD
+8 (+2.07%)
397.01 USD
+1.68 (+0.42%)
Overall TT gets a fundamental rating of 7 out of 10. We evaluated TT against 42 industry peers in the Building Products industry. Both the health and profitability get an excellent rating, making TT a very profitable company, without any liquidiy or solvency issues. TT is quite expensive at the moment. It does show a decent growth rate. These ratings would make TT suitable for quality investing!
1. Profitability
1.1 Basic Checks
- TT had positive earnings in the past year.
- TT had a positive operating cash flow in the past year.
- TT had positive earnings in each of the past 5 years.
- In the past 5 years TT always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of TT (13.72%) is better than 85.71% of its industry peers.
- The Return On Equity of TT (35.21%) is better than 92.86% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 21.47%, TT belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for TT is significantly above the industry average of 12.68%.
- The 3 year average ROIC (17.76%) for TT is below the current ROIC(21.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 35.21% | ||
| ROIC | 21.47% |
ROA(3y)10.97%
ROA(5y)9.1%
ROE(3y)30.74%
ROE(5y)25.66%
ROIC(3y)17.76%
ROIC(5y)15.01%
1.3 Margins
- The Profit Margin of TT (13.93%) is better than 71.43% of its industry peers.
- TT's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 18.79%, TT is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
- In the last couple of years the Operating Margin of TT has grown nicely.
- TT has a better Gross Margin (36.42%) than 64.29% of its industry peers.
- In the last couple of years the Gross Margin of TT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.79% | ||
| PM (TTM) | 13.93% | ||
| GM | 36.42% |
OM growth 3Y6.75%
OM growth 5Y6.01%
PM growth 3Y8.74%
PM growth 5Y3.71%
GM growth 3Y4.06%
GM growth 5Y2.99%
2. Health
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.
- Compared to 1 year ago, TT has less shares outstanding
- Compared to 5 years ago, TT has less shares outstanding
- Compared to 1 year ago, TT has an improved debt to assets ratio.
2.2 Solvency
- TT has an Altman-Z score of 6.38. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of TT (6.38) is better than 76.19% of its industry peers.
- TT has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
- The Debt to FCF ratio of TT (1.82) is better than 76.19% of its industry peers.
- TT has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- TT has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 6.38 |
ROIC/WACC2.88
WACC7.46%
2.3 Liquidity
- TT has a Current Ratio of 1.20. This is a normal value and indicates that TT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.20, TT is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
- A Quick Ratio of 0.84 indicates that TT may have some problems paying its short term obligations.
- TT has a Quick ratio of 0.84. This is amonst the worse of the industry: TT underperforms 80.95% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
- TT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.92%, which is quite good.
- The Earnings Per Share has been growing by 11.99% on average over the past years. This is quite good.
- Looking at the last year, TT shows a quite strong growth in Revenue. The Revenue has grown by 8.58% in the last year.
- The Revenue has been growing by 8.69% on average over the past years. This is quite good.
EPS 1Y (TTM)18.92%
EPS 3Y22.59%
EPS 5Y11.99%
EPS Q2Q%15.13%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y11.96%
Revenue growth 5Y8.69%
Sales Q2Q%5.54%
3.2 Future
- TT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.27% yearly.
- TT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y19.54%
EPS Next 2Y16.48%
EPS Next 3Y15.26%
EPS Next 5Y10.27%
Revenue Next Year7.73%
Revenue Next 2Y7.59%
Revenue Next 3Y7.51%
Revenue Next 5Y7.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.84, the valuation of TT can be described as expensive.
- Based on the Price/Earnings ratio, TT is valued a bit more expensive than 69.05% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.32. TT is around the same levels.
- Based on the Price/Forward Earnings ratio of 25.97, the valuation of TT can be described as expensive.
- 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 24.30, TT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 25.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, TT is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
- TT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.61 | ||
| EV/EBITDA | 21.01 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- TT has an outstanding profitability rating, which may justify a higher PE ratio.
- TT's earnings are expected to grow with 15.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)2.57
EPS Next 2Y16.48%
EPS Next 3Y15.26%
5. Dividend
5.1 Amount
- TT has a yearly dividend return of 0.97%, which is pretty low.
- TT's Dividend Yield is a higher than the industry average which is at 0.67.
- Compared to an average S&P500 Dividend Yield of 1.86, TT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
- The dividend of TT is nicely growing with an annual growth rate of 9.56%!
- TT has paid a dividend for at least 10 years, which is a reliable track record.
- TT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.56%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- TT pays out 27.90% of its income as dividend. This is a sustainable payout ratio.
- TT's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP27.9%
EPS Next 2Y16.48%
EPS Next 3Y15.26%
395.33
+8 (+2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)10-30 2025-10-30/bmo
Earnings (Next)01-29 2026-01-29/amc
Inst Owners90.31%
Inst Owner Change0.06%
Ins Owners0.25%
Ins Owner Change0.52%
Market Cap87.66B
Revenue(TTM)21.05B
Net Income(TTM)2.93B
Analysts73.33
Price Target482.61 (22.08%)
Short Float %1.44%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend3.35
Dividend Growth(5Y)9.56%
DP27.9%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.51%
Min EPS beat(2)-0.67%
Max EPS beat(2)-0.35%
EPS beat(4)1
Avg EPS beat(4)1.55%
Min EPS beat(4)-0.67%
Max EPS beat(4)7.49%
EPS beat(8)4
Avg EPS beat(8)2.85%
EPS beat(12)8
Avg EPS beat(12)3.02%
EPS beat(16)11
Avg EPS beat(16)3.16%
Revenue beat(2)0
Avg Revenue beat(2)-3.52%
Min Revenue beat(2)-3.65%
Max Revenue beat(2)-3.39%
Revenue beat(4)1
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-3.65%
Max Revenue beat(4)1.64%
Revenue beat(8)3
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)-1.95%
PT rev (3m)3.29%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-2.59%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 25.97 | ||
| P/S | 4.16 | ||
| P/FCF | 34.61 | ||
| P/OCF | 29.86 | ||
| P/B | 10.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.01 |
EPS(TTM)12.82
EY3.24%
EPS(NY)15.22
Fwd EY3.85%
FCF(TTM)11.42
FCFY2.89%
OCF(TTM)13.24
OCFY3.35%
SpS94.94
BVpS37.55
TBVpS-6.27
PEG (NY)1.58
PEG (5Y)2.57
Graham Number104.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.72% | ||
| ROE | 35.21% | ||
| ROCE | 26.64% | ||
| ROIC | 21.47% | ||
| ROICexc | 23.24% | ||
| ROICexgc | 79.55% | ||
| OM | 18.79% | ||
| PM (TTM) | 13.93% | ||
| GM | 36.42% | ||
| FCFM | 12.03% |
ROA(3y)10.97%
ROA(5y)9.1%
ROE(3y)30.74%
ROE(5y)25.66%
ROIC(3y)17.76%
ROIC(5y)15.01%
ROICexc(3y)19.7%
ROICexc(5y)17.25%
ROICexgc(3y)86.55%
ROICexgc(5y)79.73%
ROCE(3y)22.03%
ROCE(5y)18.62%
ROICexgc growth 3Y9.37%
ROICexgc growth 5Y29.75%
ROICexc growth 3Y15.09%
ROICexc growth 5Y17.85%
OM growth 3Y6.75%
OM growth 5Y6.01%
PM growth 3Y8.74%
PM growth 5Y3.71%
GM growth 3Y4.06%
GM growth 5Y2.99%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 105.39% | ||
| Cap/Sales | 1.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.67% | ||
| Profit Quality | 86.39% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 6.38 |
F-Score8
WACC7.46%
ROIC/WACC2.88
Cap/Depr(3y)91.41%
Cap/Depr(5y)79.68%
Cap/Sales(3y)1.8%
Cap/Sales(5y)1.63%
Profit Quality(3y)93.42%
Profit Quality(5y)105.39%
High Growth Momentum
Growth
EPS 1Y (TTM)18.92%
EPS 3Y22.59%
EPS 5Y11.99%
EPS Q2Q%15.13%
EPS Next Y19.54%
EPS Next 2Y16.48%
EPS Next 3Y15.26%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y11.96%
Revenue growth 5Y8.69%
Sales Q2Q%5.54%
Revenue Next Year7.73%
Revenue Next 2Y7.59%
Revenue Next 3Y7.51%
Revenue Next 5Y7.2%
EBIT growth 1Y17.03%
EBIT growth 3Y19.52%
EBIT growth 5Y15.23%
EBIT Next Year24.93%
EBIT Next 3Y15.16%
EBIT Next 5Y8.89%
FCF growth 1Y32.68%
FCF growth 3Y26.67%
FCF growth 5Y10.75%
OCF growth 1Y32.52%
OCF growth 3Y25.58%
OCF growth 5Y10.38%
TRANE TECHNOLOGIES PLC / TT FAQ
What is the fundamental rating for TT stock?
ChartMill assigns a fundamental rating of 7 / 10 to TT.
Can you provide the valuation status for TRANE TECHNOLOGIES PLC?
ChartMill assigns a valuation rating of 2 / 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 19.54% in the next year.