Trane Technologies plc (TT)
Industrials · Building Products · US stock · S&P 500 component
$448.80
▼ -22.62 (4.80%)
Fair valueOvervalued
$364 −19.0% to fair value
$182fair band $310–$441$546
Day's range
$443.00 – $467.06
52-week range
$348.06 – $505.87
About Trane Technologies plc
Trane Technologies provides heating, ventilation and air conditioning systems, refrigeration for transport and related controls and services. Its equipment is installed in commercial buildings, homes and transport fleets, and it has a significant service and parts business. The company earns money from sales of equipment, from maintenance contracts and replacement parts, and from energy efficiency projects. Construction activity and building energy demand influence its results.
Sales came to $22.2 billion in the last twelve months, having expanded at 10.1% a year across the last three years. Its operating margin came to 17.9%, and return on invested capital was 24%. Net debt stands at 1.1 times EBITDA. The company pays a dividend, yielding 0.9%. On the site's X-Ray Score it receives 56 out of 100.
Price chart
52-wk range $348.06 – $505.87Volume 1,921,204Daily, split-adjusted
Vitals
Market cap$99.9B
52-week range$348.06 – $505.87
Volume (last day)1,921,204
P/E (TTM)34.0
EBIT / EV yield3.8%
Free-cash-flow yield3.6%
Dividend yield0.9%
Revenue (TTM)$22.2B
Net income (TTM)$2.9B
Operating margin17.9%
Return on capital23.8%
Debt incl. leases$4.6B
Cash & securities$0
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$364middle half of models $305 – $434
Overvalued
−19.0% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $449
Undervalued < $310Fair $310 – $441Overvalued > $441
P/E multiple
$442
P/B multiple
$385
P/S multiple
$374
EV/EBITDA multiple
$406
EV/EBIT multiple
$400
EV/revenue multiple
$394
10-year DCF, EBITDA exit
$434
5-year DCF, EBITDA exit
$457
10-year DCF, revenue exit
$434
5-year DCF, revenue exit
$454
10-year DCF, growth exit
$251
5-year DCF, growth exit
$235
Dividend discount, stable
$180
Dividend discount, multi-stage
$336
Earnings power value
$274
Growth the price implies
19.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
22/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.8%
Free-cash-flow yield3.6%
Fair value vs price0.8×
Growth
Strong
78/100
Growing faster than most of its sector.
See the numbers →
Revenue growth (3y)10.1%
EPS growth (3y)20.2%
Growth consistency100%
Profitability
Fair
62/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital23.8%
Operating margin17.9%
Financial health
Fair
66/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score9 / 9
Net debt / EBITDA1.1×
Interest cover18.1×
Dividends
Fair
59/100
Dividend is typical for its sector.
See the numbers →
Dividend yield0.9%
Dividends vs free cash flow26%
Dividend growth10.5%
Quarterly results: last 6 quarters
+11.2%
Mar '25
+8.3%
Jun '25
+5.5%
Sep '25
+5.5%
Dec '25
+6.0%
Mar '26
+10.6%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $6.4B, diluted EPS $4.16.
Compare with peers
AOS Smith A O Corp65 LII Lennox International I...59 ALLE Allegion plc59 MAS Masco Corp53Other Building Products companies by X-Ray Score.
SWOT analysis: Trane Technologies plc
Strengthsinside the company
- Return on invested capital is 23.8%, against a median of 20.9% for industry peers.
- Revenue has grown 10.1% a year over three years (median 3.9% for industry peers).
- Earnings per share have compounded at 20.2% a year over three years.
- Operating profit covers interest 18x, so debt costs are a small drag.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- No specific opportunity is visible in our valuation, sector or growth data.
Threatsvaluation and setting
- Trades at 33.9x earnings, 61% above the 21.0x median of industry peers, so the price already assumes better results.
- The price is 19% above our fair value estimate, so there is little room for disappointment.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare TT with peers and sector
Medians of 6 Building Products peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): JCI 31, CARR 27, MAS 53, ALLE 59, LII 59, AOS 65.
| Metric | TT | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 56 | 56 | 50 |
| Valuation | 22 | 63 | 48 |
| Growth | 78 | 46 | 50 |
| Profitability | 62 | 59 | 50 |
| Financial health | 66 | 47 | 49 |
| Dividends | 59 | 51 | 53 |
Sector leaders: highest X-Ray Score in Industrials
TT ranks #24 of 81 in Industrials and #4 of 7 in Building Products by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for TT
Each factor is rated by where TT stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 7 Good · 8 Average · 6 Bad of 21
Growth: 2 · 1 · 0
Profitability: 2 · 2 · 0
Financial strength: 2 · 1 · 1
Valuation: 0 · 1 · 4
Cash flow: 1 · 3 · 0
Efficiency: 0 · 0 · 1
| Factor | TT | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +10.1% | Good beats 79% | +5.6% | – | – |
| Revenue growth, last year | +7.5% | Average beats 66% | +4.5% | +12.2% | ▼ Worse |
| EPS growth, 3 years a year | +20.2% | Good beats 79% | +5.7% | – | – |
| Profitability | |||||
| Operating margin | 17.9% | Average beats 59% | 17.5% | 16.4% | ≈ In line |
| Net margin | 13.3% | Average beats 54% | 12.8% | 11.4% | ▲ Better |
| Return on invested capital | 23.8% | Good beats 71% | 14.9% | – | – |
| Return on equity | 34.2% | Good beats 68% | 23.7% | 28.9% | ▲ Better |
| Financial strength | |||||
| Net debt / EBITDA | 1.1x | Good beats 71% | 1.8x | 1.1x | ≈ In line |
| Interest cover | 18.1x | Average beats 47% | 21.4x | 12.3x | ▲ Better |
| Current ratio | 1.07 | Bad beats 29% | 1.25 | 1.21 | ▼ Worse |
| Piotroski F-score | 9 / 9 | Good beats 96% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 33.9x | Bad beats 31% | 28.9x | 30.0x | ▼ Worse |
| Price / book | 11.6x | Bad beats 24% | 6.2x | 8.0x | ▼ Worse |
| Price / sales | 4.5x | Average beats 34% | 3.5x | 3.5x | ▼ Worse |
| EV / EBITDA | 23.9x | Bad beats 22% | 18.5x | 20.8x | ▼ Worse |
| Free cash flow yield | 3.6% | Bad beats 32% | 3.8% | 3.2% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 16.0% | Average beats 61% | 13.8% | 11.8% | ▲ Better |
| Cash from operations / net income | 1.31 | Average beats 43% | 1.39 | 1.12 | ▲ Better |
| Free cash flow growth, 3 years a year | +32.4% | Good beats 85% | +14.5% | – | – |
| Accruals (lower is better) | −3.9% | Average beats 60% | −3.2% | – | – |
| Efficiency | |||||
| Days sales outstanding | 70 days | Bad beats 25% | 57 days | 61 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 7 Good · ● 4 Average · ● 4 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldBad
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDAGood
Interest coverAverage
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalGood
Operating marginAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 56/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $14.1B | $16.0B | $17.7B | $19.8B | $21.3B |
| Operating income | $2.0B | $2.4B | $2.9B | $3.5B | $4.0B |
| Net income | $1.4B | $1.8B | $2.0B | $2.6B | $2.9B |
| Operating cash flow | $1.6B | $1.5B | $2.4B | $3.1B | $3.2B |
| Operating margin | 14.3% | 15.1% | 16.4% | 17.6% | 18.6% |
| Free cash flow | $1.4B | $1.2B | $2.1B | $2.8B | $2.8B |
| Diluted EPS | $5.87 | $7.48 | $8.77 | $11.24 | $12.98 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
3 bullish · 2 neutral · 11 bearish
Weekly
Neutral
6 bullish · 1 neutral · 5 bearish
Monthly
Strongly bullish
6 bullish · 1 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 466.7 | Bearish |
| EMA 10 | 462.9 | Bearish |
| SMA 20 | 464.4 | Bearish |
| EMA 20 | 461.2 | Bearish |
| SMA 50 | 453.2 | Bearish |
| EMA 50 | 458.3 | Bearish |
| SMA 100 | 462.7 | Bearish |
| EMA 100 | 457.4 | Bearish |
| SMA 200 | 451.5 | Bearish |
| EMA 200 | 449.2 | Bearish |
Oscillators (daily)
| RSI (14) | 43.74 | Neutral |
| MACD (12, 26) | 2.98 | Bullish |
| Momentum (12) | -5.79 | Bearish |
| Stochastic %K (14) | 14.10 | Bullish |
| Williams %R (14) | -85.90 | Bullish |
| CCI (20) | -91.47 | Neutral |
Pivot points (classic, last session)
S3 414.8 | S2 428.9 | S1 438.8 | Pivot 453.0 | R1 462.9 | R2 477.0 | R3 487.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.09 USD
Yield on today's price
0.91%
Frequency
Quarterly
Next ex-dividend date
4 Dec 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 1.0500 |
| 1.0500 | |
| 1.0500 | |
| 1.0500 | |
| 0.9400 | |
| 0.9400 | |
| 0.9400 | |
| 0.9400 | |
| 0.8400 | |
| 0.8400 | |
| 0.8400 | |
| 0.8400 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold TT
| ETF | Share of the fund |
|---|---|
| XHB SPDR S&P Homebuilders | 3.24% |
| PAVE Global X U.S. Infrastructure Developme... | 3.19% |
| FTCS First Trust Capital Strength | 2.08% |
| XLI Industrial Select Sector SPDR | 1.88% |
| JEPI JPMorgan Equity Premium Income | 1.60% |
| FIDU Fidelity MSCI Industrials Index | 1.43% |
| VIS Vanguard Industrials | 1.42% |
| TRFK Pacer Data and Digital Revolution | 1.27% |
The eight funds with the largest weight in TT among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
TT stock splits
TT has split its stock 3 times since 1992. The latest was a 2-for-1 split on 2 Sep 2005.
Full TT stock split history →TT SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change; Regulation FD disclosure
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Entered a material agreement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.