TRANE TECHNOLOGIES PLC (TT) Fundamental Analysis & Valuation

NYSE:TT • IE00BK9ZQ967

Current stock price

471.25 USD
-1.69 (-0.36%)
Last:

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.
  • In the past year TT had a positive cash flow from operations.
  • TT had positive earnings in each of the past 5 years.
  • 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

  • TT has a Return On Assets of 13.63%. This is amongst the best in the industry. TT outperforms 85.71% of its industry peers.
  • The Return On Equity of TT (34.02%) is better than 88.10% 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 92.86% 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 11.89%.
  • 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

  • TT's Profit Margin of 13.69% is fine compared to the rest of the industry. TT outperforms 71.43% of its industry peers.
  • In the last couple of years the Profit Margin of TT has grown nicely.
  • Looking at the Operating Margin, with a value of 18.61%, TT is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • TT's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TT (36.16%) is better than 61.90% of 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

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7

2. TT Health Analysis

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.
  • Compared to 1 year ago, TT has less shares outstanding
  • TT has less shares outstanding than it did 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

  • TT has an Altman-Z score of 7.27. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 7.27, TT belongs to the best of the industry, outperforming 85.71% 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 76.19% 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 (0.46) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 1.64
Altman-Z 7.27
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

  • A Current Ratio of 1.25 indicates that TT should not have too much problems paying its short term obligations.
  • The Current ratio of TT (1.25) is worse than 83.33% 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 Quick ratio of 0.92. This is in the lower half of the industry: TT underperforms 76.19% 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

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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 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.
  • 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

  • Based on estimates for the next years, TT will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.99% on average per year.
  • TT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.65% yearly.
EPS Next Y16.68%
EPS Next 2Y15.07%
EPS Next 3Y14.54%
EPS Next 5Y15.99%
Revenue Next Year9.11%
Revenue Next 2Y8.57%
Revenue Next 3Y8.28%
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

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1

4. TT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 36.06, 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 71.43% of the companies are valued more cheaply.
  • When comparing the Price/Earnings ratio of TT to the average of the S&P500 Index (27.18), we can say TT is valued slightly more expensively.
  • With a Price/Forward Earnings ratio of 30.90, TT can be considered very expensive at the moment.
  • Based on the Price/Forward Earnings ratio, TT is valued a bit more expensive than 69.05% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.96, TT is valued at the same level.
Industry RankSector Rank
PE 36.06
Fwd PE 30.9
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TT indicates a slightly more expensive valuation: TT is more expensive than 73.81% of the companies listed in the same industry.
  • 64.29% of the companies in the same industry are cheaper than TT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 37.1
EV/EBITDA 24.75
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 TT does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of TT may justify a higher PE ratio.
  • TT's earnings are expected to grow with 14.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)1.5
EPS Next 2Y15.07%
EPS Next 3Y14.54%

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

6

5. TT Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.91%, TT is not a good candidate for dividend investing.
  • TT's Dividend Yield is a higher than the industry average which is at 0.72.
  • Compared to an average S&P500 Dividend Yield of 1.82, TT's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.91%

5.2 History

  • The dividend of TT is nicely growing with an annual growth rate of 12.04%!
  • 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)12.04%
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

  • TT pays out 28.69% of its income as dividend. This is a sustainable payout ratio.
  • TT's earnings are growing more than its dividend. This makes the dividend growth 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

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TT Fundamentals: All Metrics, Ratios and Statistics

TRANE TECHNOLOGIES PLC

NYSE:TT (4/14/2026, 10:06:04 AM)

471.25

-1.69 (-0.36%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)01-29
Earnings (Next)04-30
Inst Owners90.3%
Inst Owner Change0.04%
Ins Owners0.26%
Ins Owner Change0.97%
Market Cap104.30B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts75.15
Price Target489.9 (3.96%)
Short Float %1.59%
Short Ratio2.54
Dividend
Industry RankSector Rank
Dividend Yield 0.91%
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)-0.03%
PT rev (3m)0.04%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.3%
Valuation
Industry RankSector Rank
PE 36.06
Fwd PE 30.9
P/S 4.89
P/FCF 37.1
P/OCF 32.65
P/B 12.16
P/tB N/A
EV/EBITDA 24.75
EPS(TTM)13.07
EY2.77%
EPS(NY)15.25
Fwd EY3.24%
FCF(TTM)12.7
FCFY2.7%
OCF(TTM)14.43
OCFY3.06%
SpS96.34
BVpS38.76
TBVpS-5.04
PEG (NY)2.16
PEG (5Y)1.5
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 7.27
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)16.49%
EPS 3Y21.04%
EPS 5Y24.05%
EPS Q2Q%9.58%
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%5.56%
Revenue Next Year9.11%
Revenue Next 2Y8.57%
Revenue Next 3Y8.28%
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 36.06 and the Price/Book (PB) ratio is 12.16.


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.