TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TT • IE00BK9ZQ967

432.76 USD
+7.67 (+1.8%)
Last: Feb 3, 2026, 12:29 PM
Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to TT. TT was compared to 42 industry peers in the Building Products industry. TT has an excellent profitability rating, but there are some minor concerns on its financial health. TT is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year TT was profitable.
  • In the past year TT had a positive cash flow from operations.
  • Each year in the past 5 years TT has 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

  • TT's Return On Assets of 13.63% is amongst the best of the industry. TT outperforms 85.71% of its industry peers.
  • The Return On Equity of TT (33.93%) is better than 90.48% of its industry peers.
  • TT has a Return On Invested Capital of 21.16%. This is amongst the best in the industry. TT outperforms 90.48% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TT is significantly above the industry average of 12.68%.
  • 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 33.93%
ROIC 21.16%
ROA(3y)12.27%
ROA(5y)10.88%
ROE(3y)32.43%
ROE(5y)29.78%
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

  • TT's Profit Margin of 13.69% is fine compared to the rest of the industry. TT outperforms 69.05% of its industry peers.
  • TT's Profit Margin has improved in the last couple of years.
  • The Operating Margin of TT (18.61%) is better than 73.81% of its industry peers.
  • TT's Operating Margin has improved in the last couple of years.
  • TT has a Gross Margin (36.16%) which is in line with 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

5

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.
  • TT has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TT has been reduced compared to 5 years ago.
  • Compared to 1 year ago, TT has an improved debt to assets ratio.
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

  • The Debt to FCF ratio of TT is 1.64, which is an excellent value as it means it would take TT, only 1.64 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of TT (1.64) is better than 78.57% 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 N/A
ROIC/WACC2.83
WACC7.47%
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

  • A Current Ratio of 1.25 indicates that TT should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.25, TT is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
  • 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 has a worse Quick ratio (0.92) than 78.57% of its industry peers.
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

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 16.49% 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.
  • Looking at the last year, TT shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
  • TT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.35% yearly.
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

  • The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
  • Based on estimates for the next years, TT will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y16.48%
EPS Next 2Y14.66%
EPS Next 3Y12.26%
EPS Next 5Y8.77%
Revenue Next Year7.41%
Revenue Next 2Y7.41%
Revenue Next 3Y6.3%
Revenue Next 5Y7.06%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 decreasing.
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 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 5 10 15

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 33.11, which means the current valuation is very expensive for TT.
  • Based on the Price/Earnings ratio, TT is valued a bit more expensive than 71.43% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.41. TT is around the same levels.
  • The Price/Forward Earnings ratio is 28.43, which means the current valuation is very expensive for TT.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 66.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, TT is valued at the same level.
Industry RankSector Rank
PE 33.11
Fwd PE 28.43
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 73.81% of the companies in the same industry.
  • TT's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 34.13
EV/EBITDA 22.36
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.
  • The excellent profitability rating of TT may justify a higher PE ratio.
  • TT's earnings are expected to grow with 12.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)1.38
EPS Next 2Y14.66%
EPS Next 3Y12.26%

5

5. Dividend

5.1 Amount

  • TT has a yearly dividend return of 0.89%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.68, TT pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.89, TT pays less dividend than the S&P500 average, which is at 1.83.
Industry RankSector Rank
Dividend Yield 0.89%

5.2 History

  • On average, the dividend of TT grows each year by 12.03%, 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)12.03%
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 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.69%
EPS Next 2Y14.66%
EPS Next 3Y12.26%
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

TRANE TECHNOLOGIES PLC

NYSE:TT (2/3/2026, 12:29:08 PM)

432.76

+7.67 (+1.8%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)N/A
Inst Owners90.31%
Inst Owner Change-2.62%
Ins Owners0.25%
Ins Owner Change0.52%
Market Cap95.96B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts73.33
Price Target482.61 (11.52%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.89%
Yearly Dividend3.75
Dividend Growth(5Y)12.03%
DP28.69%
Div Incr Years14
Div Non Decr Years14
Ex-DateN/A
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)-1.45%
PT rev (3m)3.53%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-1.69%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.92%
Valuation
Industry RankSector Rank
PE 33.11
Fwd PE 28.43
P/S 4.5
P/FCF 34.13
P/OCF 30.04
P/B 11.16
P/tB N/A
EV/EBITDA 22.36
EPS(TTM)13.07
EY3.02%
EPS(NY)15.22
Fwd EY3.52%
FCF(TTM)12.68
FCFY2.93%
OCF(TTM)14.41
OCFY3.33%
SpS96.16
BVpS38.79
TBVpS-4.93
PEG (NY)2.01
PEG (5Y)1.38
Graham Number106.8
Profitability
Industry RankSector Rank
ROA 13.63%
ROE 33.93%
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)32.43%
ROE(5y)29.78%
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 250
Cash Conversion 73.54%
Profit Quality 96.33%
Current Ratio 1.25
Quick Ratio 0.92
Altman-Z N/A
F-Score9
WACC7.47%
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 Y16.48%
EPS Next 2Y14.66%
EPS Next 3Y12.26%
EPS Next 5Y8.77%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.56%
Revenue Next Year7.41%
Revenue Next 2Y7.41%
Revenue Next 3Y6.3%
Revenue Next 5Y7.06%
EBIT growth 1Y13.35%
EBIT growth 3Y17.93%
EBIT growth 5Y19.78%
EBIT Next Year20.49%
EBIT Next 3Y12.93%
EBIT Next 5Y7.52%
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 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 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 5 / 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 16.48% in the next year.