TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis

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

455.02 USD
+18.87 (+4.33%)
Last: Feb 6, 2026, 03:50 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. While TT belongs to the best of the industry regarding profitability, 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.
  • 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

  • TT has a better Return On Assets (13.63%) than 85.71% of its industry peers.
  • TT has a Return On Equity of 33.93%. This is amongst the best in the industry. TT outperforms 90.48% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.16%, 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 12.36%.
  • The 3 year average ROIC (19.58%) for TT is below the current ROIC(21.16%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 13.69%, TT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TT has grown nicely.
  • TT has a Operating Margin of 18.61%. This is in the better half of the industry: TT outperforms 76.19% of its industry peers.
  • In the last couple of years the Operating Margin of TT has grown nicely.
  • TT's Gross Margin of 36.16% is in line compared 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

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ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • 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
  • 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.
  • TT's Debt to FCF ratio of 1.64 is fine compared to the rest 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 has a Debt to Equity ratio of 0.46. This is comparable 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 N/A
ROIC/WACC2.83
WACC7.49%
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.
  • 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 Quick ratio of 0.92. This is in the lower half of the industry: TT underperforms 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

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

5

3. Growth

3.1 Past

  • TT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.49%, which is quite good.
  • The Earnings Per Share has been growing by 24.05% on average over the past years. This is a very strong growth
  • The Revenue has been growing slightly by 7.48% in the past year.
  • Measured over the past years, TT shows a quite strong growth in Revenue. The Revenue has been growing by 11.35% on average per year.
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

  • TT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.77% yearly.
  • The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y16.68%
EPS Next 2Y15.01%
EPS Next 3Y13.91%
EPS Next 5Y8.77%
Revenue Next Year9.06%
Revenue Next 2Y8.47%
Revenue Next 3Y7.96%
Revenue Next 5Y7.07%

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

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 34.81, the valuation of TT can be described as expensive.
  • 71.43% 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 27.67, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 29.84 indicates a quite expensive valuation of TT.
  • 66.67% of the companies in the same industry are cheaper than TT, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. TT is around the same levels.
Industry RankSector Rank
PE 34.81
Fwd PE 29.84
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

  • 71.43% of the companies in the same industry are cheaper than TT, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of TT is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 35.89
EV/EBITDA 22.92
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.
  • A more expensive valuation may be justified as TT's earnings are expected to grow with 13.91% in the coming years.
PEG (NY)2.09
PEG (5Y)1.45
EPS Next 2Y15.01%
EPS Next 3Y13.91%

More info and screens

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

5

5. Dividend

5.1 Amount

  • TT has a yearly dividend return of 0.95%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.67, TT pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.95, TT pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.95%

5.2 History

  • The dividend of TT is nicely growing with an annual growth rate of 12.03%!
  • 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)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

  • TT pays out 28.69% of its income as dividend. This is a sustainable payout ratio.
  • TT's earnings are growing slower than its dividend. This means the dividend growth is not 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

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Find the best dividend stocksShow peers with best dividend

TRANE TECHNOLOGIES PLC

NYSE:TT (2/6/2026, 3:50:01 PM)

455.02

+18.87 (+4.33%)

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-2.62%
Ins Owners0.25%
Ins Owner Change0.52%
Market Cap100.90B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts73.33
Price Target490.08 (7.71%)
Short Float %1.63%
Short Ratio2.26
Dividend
Industry RankSector Rank
Dividend Yield 0.95%
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 34.81
Fwd PE 29.84
P/S 4.73
P/FCF 35.89
P/OCF 31.58
P/B 11.73
P/tB N/A
EV/EBITDA 22.92
EPS(TTM)13.07
EY2.87%
EPS(NY)15.25
Fwd EY3.35%
FCF(TTM)12.68
FCFY2.79%
OCF(TTM)14.41
OCFY3.17%
SpS96.16
BVpS38.79
TBVpS-4.93
PEG (NY)2.09
PEG (5Y)1.45
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
WACC7.49%
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 5Y8.77%
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 5Y7.07%
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 16.68% in the next year.