TRANE TECHNOLOGIES PLC (TT) Stock Fundamental Analysis

NYSE:TT • IE00BK9ZQ967

462.32 USD
+5.18 (+1.13%)
At close: Feb 27, 2026
459.15 USD
-3.17 (-0.69%)
After Hours: 2/27/2026, 8:04:00 PM
Fundamental Rating

6

TT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 42 industry peers in the Building Products industry. TT gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
  • 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

  • Looking at the Return On Assets, with a value of 13.63%, TT belongs to the top of the industry, outperforming 88.10% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 34.02%, TT belongs to the top of the industry, outperforming 90.48% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 21.16%, TT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TT is significantly above the industry average of 11.92%.
  • 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

  • With a decent Profit Margin value of 13.69%, TT is doing good in 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.
  • TT has a better Operating Margin (18.61%) than 76.19% 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

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.
  • 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
  • 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 7.16. This indicates that TT is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of TT (7.16) is better than 83.33% of its industry peers.
  • 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.
  • Looking at the Debt to FCF ratio, with a value of 1.64, TT is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
  • TT has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
  • 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 7.16
ROIC/WACC2.81
WACC7.53%
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.
  • TT has a worse Current ratio (1.25) 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.
  • Looking at the Quick ratio, with a value of 0.92, TT is doing worse than 76.19% of the companies in the same industry.
  • 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.
  • Looking at the last year, TT shows a small growth in Revenue. The Revenue has grown by 7.48% in the last 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 2Y15.01%
EPS Next 3Y13.91%
EPS Next 5Y15.99%
Revenue Next Year9.13%
Revenue Next 2Y8.58%
Revenue Next 3Y8.15%
Revenue Next 5Y9.65%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

  • With a Price/Earnings ratio of 35.37, TT can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, TT is valued a bit more expensive than the industry average as 69.05% of the companies are valued more cheaply.
  • When comparing the Price/Earnings ratio of TT to the average of the S&P500 Index (27.07), we can say TT is valued slightly more expensively.
  • TT is valuated quite expensively with a Price/Forward Earnings ratio of 30.32.
  • Based on the Price/Forward Earnings ratio, TT is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. TT is around the same levels.
Industry RankSector Rank
PE 35.37
Fwd PE 30.32
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

  • Based on the Enterprise Value to EBITDA ratio, TT is valued a bit more expensive than 71.43% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TT is valued a bit more expensive than 64.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 36.4
EV/EBITDA 24.21
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.
  • TT has an outstanding profitability rating, which may justify a higher PE ratio.
  • TT's earnings are expected to grow with 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)1.47
EPS Next 2Y15.01%
EPS Next 3Y13.91%

6

5. Dividend

5.1 Amount

  • TT has a yearly dividend return of 0.92%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.66, TT pays a bit more dividend than its industry peers.
  • 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 0.92%

5.2 History

  • The dividend of TT is nicely growing with an annual growth rate of 12.04%!
  • 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 2026 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 (2/27/2026, 8:04:00 PM)

After market: 459.15 -3.17 (-0.69%)

462.32

+5.18 (+1.13%)

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-0.65%
Ins Owners0.25%
Ins Owner Change0.58%
Market Cap102.33B
Revenue(TTM)21.32B
Net Income(TTM)2.92B
Analysts75.15
Price Target490.06 (6%)
Short Float %1.93%
Short Ratio2.57
Dividend
Industry RankSector Rank
Dividend Yield 0.92%
Yearly Dividend3.76
Dividend Growth(5Y)12.04%
DP28.69%
Div Incr Years14
Div Non Decr Years14
Ex-Date03-06
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)1.54%
PT rev (3m)-0.31%
EPS NQ rev (1m)-5.06%
EPS NQ rev (3m)-6.58%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)1.59%
Revenue NY rev (3m)0.93%
Valuation
Industry RankSector Rank
PE 35.37
Fwd PE 30.32
P/S 4.8
P/FCF 36.4
P/OCF 32.03
P/B 11.93
P/tB N/A
EV/EBITDA 24.21
EPS(TTM)13.07
EY2.83%
EPS(NY)15.25
Fwd EY3.3%
FCF(TTM)12.7
FCFY2.75%
OCF(TTM)14.43
OCFY3.12%
SpS96.34
BVpS38.76
TBVpS-5.04
PEG (NY)2.12
PEG (5Y)1.47
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 7.16
F-Score9
WACC7.53%
ROIC/WACC2.81
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 Year9.13%
Revenue Next 2Y8.58%
Revenue Next 3Y8.15%
Revenue Next 5Y9.65%
EBIT growth 1Y13.35%
EBIT growth 3Y17.93%
EBIT growth 5Y19.78%
EBIT Next Year20.15%
EBIT Next 3Y13.49%
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 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.


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.