TRANE TECHNOLOGIES PLC (TT) Fundamental Analysis & Valuation

NYSE:TT • IE00BK9ZQ967

Current stock price

486.48 USD
-6.06 (-1.23%)
At close:
486.48 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.
  • Each year in the past 5 years TT has been profitable.
  • Each year in the past 5 years TT had a positive operating cash flow.
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 85.37% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 34.02%, TT belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
  • The Return On Invested Capital of TT (21.16%) is better than 92.68% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TT is significantly above the industry average of 11.86%.
  • 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

  • With a decent Profit Margin value of 13.69%, TT is doing good in the industry, outperforming 70.73% of the companies in the same industry.
  • TT's Profit Margin has improved in the last couple of years.
  • TT has a Operating Margin of 18.61%. This is in the better half of the industry: TT outperforms 75.61% of its industry peers.
  • In the last couple of years the Operating Margin of TT has grown nicely.
  • Looking at the Gross Margin, with a value of 36.16%, TT is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
  • 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. TT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), TT is creating value.
  • The number of shares outstanding for TT has been reduced compared to 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 7.47. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.47, TT belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
  • 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 75.61% 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 has a Debt to Equity ratio (0.46) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 1.64
Altman-Z 7.47
ROIC/WACC2.82
WACC7.51%
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.
  • The Current ratio of TT (1.25) is worse than 85.37% of its industry peers.
  • A Quick Ratio of 0.92 indicates that TT may have some problems paying its short term obligations.
  • TT has a worse Quick ratio (0.92) than 78.05% 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

More info and screens

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

6

3. TT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.96% over the past year.
  • TT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.05% yearly.
  • TT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
  • The Revenue has been growing by 11.35% on average over the past years. This is quite good.
EPS 1Y (TTM)12.96%
EPS 3Y21.04%
EPS 5Y24.05%
EPS Q2Q%7.35%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.99%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.99% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 9.65% on average over the next years. This is quite good.
EPS Next Y16.68%
EPS Next 2Y15.07%
EPS Next 3Y14.54%
EPS Next 5Y15.99%
Revenue Next Year9.16%
Revenue Next 2Y8.61%
Revenue Next 3Y8.32%
Revenue Next 5Y9.65%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

More info and screens

Find the best growth stocksShow best growing peers

1

4. TT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 36.72, TT can be considered very expensive at the moment.
  • 73.17% of the companies in the same industry are cheaper than TT, based on the Price/Earnings ratio.
  • TT is valuated rather expensively when we compare the Price/Earnings ratio to 26.77, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 28.11, TT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, TT is valued a bit more expensive than the industry average as 70.73% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.75, TT is valued a bit more expensive.
Industry RankSector Rank
PE 36.72
Fwd PE 28.11
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

  • TT's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. TT is more expensive than 75.61% of the companies in the same industry.
  • 63.41% of the companies in the same industry are cheaper than TT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 38.3
EV/EBITDA 25.75
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 an expensive valuation of the company.
  • TT has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TT's earnings are expected to grow with 14.54% in the coming years.
PEG (NY)2.2
PEG (5Y)1.53
EPS Next 2Y15.07%
EPS Next 3Y14.54%

More info and screens

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

6

5. TT Dividend Analysis

5.1 Amount

  • TT has a yearly dividend return of 0.88%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.72, TT pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.88, TT pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.88%

5.2 History

  • On average, the dividend of TT grows each year by 12.04%, which is quite nice.
  • TT has been paying a dividend for at least 10 years, so it has 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 Years15
Div Non Decr Years15
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.
  • The dividend of TT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP28.69%
EPS Next 2Y15.07%
EPS Next 3Y14.54%
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

More info and screens

Find the best dividend stocksShow peers with best dividend

TT Fundamentals: All Metrics, Ratios and Statistics

TRANE TECHNOLOGIES PLC

NYSE:TT (5/1/2026, 4:20:00 PM)

After market: 486.48 0 (0%)

486.48

-6.06 (-1.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Industry Strength49.32
Industry Growth52.67
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners90.3%
Inst Owner Change-0.44%
Ins Owners0.26%
Ins Owner Change0.97%
Market Cap107.67B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts75.15
Price Target496.21 (2%)
Short Float %1.66%
Short Ratio2.89
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend3.76
Dividend Growth(5Y)12.04%
DP28.69%
Div Incr Years15
Div Non Decr Years15
Ex-Date06-05
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)-0.5%
PT rev (3m)1.03%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.62%
Valuation
Industry RankSector Rank
PE 36.72
Fwd PE 28.11
P/S 5.05
P/FCF 38.3
P/OCF 33.71
P/B 12.55
P/tB N/A
EV/EBITDA 25.75
EPS(TTM)13.25
EY2.72%
EPS(NY)17.31
Fwd EY3.56%
FCF(TTM)12.7
FCFY2.61%
OCF(TTM)14.43
OCFY2.97%
SpS96.34
BVpS38.76
TBVpS-5.04
PEG (NY)2.2
PEG (5Y)1.53
Graham Number107.499 (-77.9%)
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 7.47
F-Score9
WACC7.51%
ROIC/WACC2.82
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)12.96%
EPS 3Y21.04%
EPS 5Y24.05%
EPS Q2Q%7.35%
EPS Next Y16.68%
EPS Next 2Y15.07%
EPS Next 3Y14.54%
EPS Next 5Y15.99%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.99%
Revenue Next Year9.16%
Revenue Next 2Y8.61%
Revenue Next 3Y8.32%
Revenue Next 5Y9.65%
EBIT growth 1Y13.35%
EBIT growth 3Y17.93%
EBIT growth 5Y19.78%
EBIT Next Year20.18%
EBIT Next 3Y13.78%
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.


How profitable is TRANE TECHNOLOGIES PLC (TT) stock?

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


What is the valuation of TRANE TECHNOLOGIES PLC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for TRANE TECHNOLOGIES PLC (TT) is 36.72 and the Price/Book (PB) ratio is 12.55.


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 16.68% in the next year.