TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:TT - IE00BK9ZQ967 - Common Stock
402.28 USD
+3.14 (+0.79%)
We assign a fundamental rating of 7 out of 10 to TT. TT was compared to 41 industry peers in the Building Products industry. TT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make TT suitable for quality investing!
1. Profitability
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.
TT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.72%, TT belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
The Return On Equity of TT (35.21%) is better than 92.68% of its industry peers.
The Return On Invested Capital of TT (21.47%) is better than 90.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TT is significantly above the industry average of 12.52%.
The last Return On Invested Capital (21.47%) for TT is above the 3 year average (17.76%), which is a sign of increasing profitability.
| 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
TT has a Profit Margin of 13.93%. This is in the better half of the industry: TT outperforms 70.73% of its industry peers.
In the last couple of years the Profit Margin of TT has grown nicely.
TT has a better Operating Margin (18.79%) than 73.17% 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 36.42%, TT is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so TT is creating value.
The number of shares outstanding for TT has been reduced compared to 1 year ago.
TT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for TT has been reduced compared to a year ago.
2.2 Solvency
TT has an Altman-Z score of 6.42. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.42, TT is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of TT is 1.82, which is an excellent value as it means it would take TT, only 1.82 years of fcf income to pay off all of its debts.
TT has a Debt to FCF ratio of 1.82. This is in the better half of the industry: TT outperforms 75.61% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 6.42 |
ROIC/WACC2.93
WACC7.33%
2.3 Liquidity
A Current Ratio of 1.20 indicates that TT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.20, TT is doing worse than 82.93% of the companies in the same industry.
A Quick Ratio of 0.84 indicates that TT may have some problems paying its short term obligations.
The Quick ratio of TT (0.84) is worse 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.92% over the past year.
Measured over the past years, TT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.99% on average per year.
TT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.58%.
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
The Earnings Per Share is expected to grow by 10.27% on average over the next years. This is quite good.
TT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.20% yearly.
EPS Next Y19.56%
EPS Next 2Y16.75%
EPS Next 3Y15.45%
EPS Next 5Y10.27%
Revenue Next Year7.75%
Revenue Next 2Y7.68%
Revenue Next 3Y7.59%
Revenue Next 5Y7.2%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.38, which means the current valuation is very expensive for TT.
Based on the Price/Earnings ratio, TT is valued a bit more expensive than the industry average as 70.73% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of TT to the average of the S&P500 Index (26.59), we can say TT is valued inline with the index average.
With a Price/Forward Earnings ratio of 26.31, 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 65.85% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.80, TT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 26.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TT is valued a bit more expensive than the industry average as 70.73% 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 | 35.22 | ||
| EV/EBITDA | 21.21 |
4.3 Compensation for Growth
TT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of TT may justify a higher PE ratio.
TT's earnings are expected to grow with 15.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)2.62
EPS Next 2Y16.75%
EPS Next 3Y15.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, TT is not a good candidate for dividend investing.
TT's Dividend Yield is a higher than the industry average which is at 1.31.
With a Dividend Yield of 0.93, TT pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of TT is nicely growing with an annual growth rate of 9.56%!
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)9.56%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
27.90% of the earnings are spent on dividend by TT. This is a low number and 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 2Y16.75%
EPS Next 3Y15.45%
NYSE:TT (12/11/2025, 10:02:09 AM)
402.28
+3.14 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners90.2%
Inst Owner Change-1.85%
Ins Owners0.25%
Ins Owner Change0.52%
Market Cap89.20B
Revenue(TTM)21.05B
Net Income(TTM)2.93B
Analysts72.73
Price Target492.2 (22.35%)
Short Float %1.25%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend3.35
Dividend Growth(5Y)9.56%
DP27.9%
Div Incr Years14
Div Non Decr Years14
Ex-Date
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)5.58%
PT rev (3m)4.69%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)-4.38%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-4.15%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-1.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.38 | ||
| Fwd PE | 26.31 | ||
| P/S | 4.24 | ||
| P/FCF | 35.22 | ||
| P/OCF | 30.39 | ||
| P/B | 10.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.21 |
EPS(TTM)12.82
EY3.19%
EPS(NY)15.29
Fwd EY3.8%
FCF(TTM)11.42
FCFY2.84%
OCF(TTM)13.24
OCFY3.29%
SpS94.94
BVpS37.55
TBVpS-6.27
PEG (NY)1.6
PEG (5Y)2.62
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 | 6.42 |
F-Score8
WACC7.33%
ROIC/WACC2.93
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 Y19.56%
EPS Next 2Y16.75%
EPS Next 3Y15.45%
EPS Next 5Y10.27%
Revenue 1Y (TTM)8.58%
Revenue growth 3Y11.96%
Revenue growth 5Y8.69%
Sales Q2Q%5.54%
Revenue Next Year7.75%
Revenue Next 2Y7.68%
Revenue Next 3Y7.59%
Revenue Next 5Y7.2%
EBIT growth 1Y17.03%
EBIT growth 3Y19.52%
EBIT growth 5Y15.23%
EBIT Next Year24.93%
EBIT Next 3Y15.19%
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.
What is the valuation status for TT stock?
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.
What are the PE and PB ratios of TRANE TECHNOLOGIES PLC (TT) stock?
The Price/Earnings (PE) ratio for TRANE TECHNOLOGIES PLC (TT) is 31.38 and the Price/Book (PB) ratio is 10.71.
Is the dividend of TRANE TECHNOLOGIES PLC sustainable?
The dividend rating of TRANE TECHNOLOGIES PLC (TT) is 6 / 10 and the dividend payout ratio is 27.9%.