TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis

NYSE:TT • IE00BK9ZQ967

459.44 USD
-10.98 (-2.33%)
At close: Feb 18, 2026
459.44 USD
0 (0%)
After Hours: 2/18/2026, 8:05:16 PM
Fundamental Rating

6

Taking everything into account, TT scores 6 out of 10 in our fundamental rating. TT was compared to 42 industry peers in the Building Products industry. TT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TT is quite expensive at the moment. It does show a decent growth rate. These ratings could make TT a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

9

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.
  • In the past 5 years TT has always been profitable.
  • TT had a positive operating cash flow in each of the past 5 years.
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

  • The Return On Assets of TT (13.63%) is better than 85.71% of its industry peers.
  • With an excellent Return On Equity value of 34.02%, TT belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
  • TT has a better Return On Invested Capital (21.16%) than 92.86% of its industry peers.
  • TT had an Average Return On Invested Capital over the past 3 years of 19.58%. This is significantly above the industry average of 11.95%.
  • 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.
  • In the last couple of years the Profit Margin of TT has grown nicely.
  • The Operating Margin of TT (18.61%) is better than 76.19% of its industry peers.
  • In the last couple of years the Operating Margin of TT has grown nicely.
  • TT has a Gross Margin of 36.16%. This is comparable to the rest of the industry: TT outperforms 59.52% of its industry peers.
  • TT's Gross Margin has improved in the last couple of years.
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

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TT is creating value.
  • Compared to 1 year ago, TT has less shares outstanding
  • The number of shares outstanding for TT has been reduced compared to 5 years ago.
  • The debt/assets ratio for TT has been reduced compared to a year ago.
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 7.13. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.13, TT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
  • 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.
  • TT has a Debt to FCF ratio of 1.64. This is in the better half of the industry: TT outperforms 78.57% of its industry peers.
  • A Debt/Equity ratio of 0.46 indicates that TT is not too dependend on debt financing.
  • 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 7.13
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

  • A Current Ratio of 1.25 indicates that TT should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.25, TT is doing worse than 83.33% of the companies in the same industry.
  • A Quick Ratio of 0.92 indicates that TT may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.92, TT is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
  • The current and quick ratio evaluation for TT is rather negative, while it does have 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

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 16.49% over the past year.
  • Measured over the past years, TT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.05% on average per year.
  • TT shows a small growth in Revenue. In the last year, the Revenue has grown by 7.48%.
  • 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 15.99% on average over the next years. This is quite good.
  • Based on estimates for the next years, TT will show a quite strong growth in Revenue. The Revenue will grow by 9.65% on average per year.
EPS Next Y16.68%
EPS Next 2Y15.01%
EPS Next 3Y13.91%
EPS Next 5Y15.99%
Revenue Next Year9.06%
Revenue Next 2Y8.47%
Revenue Next 3Y7.96%
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.
  • 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

1

4. Valuation

4.1 Price/Earnings Ratio

  • TT is valuated quite expensively with a Price/Earnings ratio of 35.15.
  • Based on the Price/Earnings ratio, TT is valued a bit more expensive than 71.43% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.27, TT is valued a bit more expensive.
  • With a Price/Forward Earnings ratio of 30.13, TT can be considered very expensive at the moment.
  • 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.
  • TT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.16.
Industry RankSector Rank
PE 35.15
Fwd PE 30.13
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 69.05% of the companies in the same industry.
  • 61.90% of the companies in the same industry are cheaper than TT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 36.17
EV/EBITDA 24.07
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 13.91% in the coming years.
PEG (NY)2.11
PEG (5Y)1.46
EPS Next 2Y15.01%
EPS Next 3Y13.91%

6

5. Dividend

5.1 Amount

  • TT has a yearly dividend return of 0.91%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.63, TT pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.85, TT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

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 their dividend for at least 10 years, which is a reliable track record.
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 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 2Y15.01%
EPS Next 3Y13.91%
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 (2/18/2026, 8:05:16 PM)

After market: 459.44 0 (0%)

459.44

-10.98 (-2.33%)

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-0.46%
Ins Owners0.25%
Ins Owner Change0.55%
Market Cap101.69B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts75.15
Price Target490.08 (6.67%)
Short Float %1.93%
Short Ratio2.57
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
Yearly Dividend3.76
Dividend Growth(5Y)12.04%
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)0.08%
PT rev (3m)5.13%
EPS NQ rev (1m)-5.06%
EPS NQ rev (3m)-6.67%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-2.48%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)0.86%
Valuation
Industry RankSector Rank
PE 35.15
Fwd PE 30.13
P/S 4.77
P/FCF 36.17
P/OCF 31.83
P/B 11.85
P/tB N/A
EV/EBITDA 24.07
EPS(TTM)13.07
EY2.84%
EPS(NY)15.25
Fwd EY3.32%
FCF(TTM)12.7
FCFY2.76%
OCF(TTM)14.43
OCFY3.14%
SpS96.34
BVpS38.76
TBVpS-5.04
PEG (NY)2.11
PEG (5Y)1.46
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 7.13
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 Y16.68%
EPS Next 2Y15.01%
EPS Next 3Y13.91%
EPS Next 5Y15.99%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y10.06%
Revenue growth 5Y11.35%
Sales Q2Q%5.56%
Revenue Next Year9.06%
Revenue Next 2Y8.47%
Revenue Next 3Y7.96%
Revenue Next 5Y9.65%
EBIT growth 1Y13.35%
EBIT growth 3Y17.93%
EBIT growth 5Y19.78%
EBIT Next Year20.49%
EBIT Next 3Y12.93%
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 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 16.68% in the next year.