TT

Trane Technologies plc

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Industrials

industry

Construction

Exchange

NYSE

County of HQ

Ireland

Next Earnings Date

07/29/2026

Business Summary

TT Trane Technologies operates with a robust business model centered around innovative climate solutions. By offering energy-efficient products and services, the company secures long-term contracts and fosters customer loyalty. Its competitive moat is strengthened by a focus on sustainability and cutting-edge technology, ensuring a steady cash flow. This strategic positioning allows it to maintain a strong market presence and capitalize on industry trends.

 


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VALUATION

P/E

36.68

Market Cap ($M USD)

$105.33B

Forward P/E

21.42

PEG

0.30

PRICE TO SALES

4.88

PRICE TO BOOK

12.34

EV / EBITDA

25.62

5-Year Average P/E

Free Cash Flow Yield

3.00%

DCF Value

$265.72

Graham Number

$106.22

Price to FCF

33.33

EV to FCF

34.45

Earnings Yield

2.73%

FCF Yield

3.00%

DIVIDEND

Yield

0.81%

Annual Payout

$3.87

Payout Ratio

29.67%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$12.99

Next Year EPS Growth Estimate

$22.25

Next Year Revenue Growth Estimate

$2.97T

Return on Equity (ROE)

34.71%

FREE CASH FLOW

Operating Margin

18.17%

Debt-to-Equity

0.54

Piotroski F-Score

7

Altman Z-Score

6.56

Return on Invested Capital (ROIC)

25.40%

Current Ratio

1.10

Quick Ratio

0.77

Net Debt to EBITDA

0.83

Interest Coverage

17.44

Gross Profit margin

35.92%

FCF PER SHARE

$14.17

REVENUE PER SHARE

$96.83

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Gainseekers Quantitative Analysis

Summary

TT Trane Technologies plc is trading at a premium, with a Price/Earnings ratio of 36.68 and a Forward P/E of 21.42, suggesting high growth expectations. However, the stock’s Snapshot Price is significantly above its DCF Value and Graham Number, indicating potential overvaluation. The Altman Z-score of 6.56 reflects strong financial stability, while the Earnings Yield of 2.73% is lackluster. Despite these valuation concerns, the company exhibits robust growth potential, as evidenced by a PEG Forward of 0.30, suggesting it may be undervalued relative to its growth prospects.

AI Exposure / Tech Reliance

Operating in the Industrials sector, TT Trane Technologies is well-positioned to leverage AI and modern tech shifts. As a player in the Construction industry, integrating smart technologies and AI-driven solutions could enhance operational efficiencies and product offerings. This adaptability is crucial for maintaining competitiveness in an evolving market landscape.

The Bull Case

For value or GARP investors, TT Trane Technologies offers compelling reasons to buy. The company boasts a strong ROIC of 25.40%, indicating efficient capital allocation and robust profitability. A Piotroski F-Score of 7 suggests solid financial health, while an Operating Margin of 18.17% highlights its pricing power. Despite a modest FCF Yield of 3.00%, the firm's ability to generate consistent cash flow underscores its operational strength.

The Bear Case

Despite its strengths, TT Trane Technologies faces significant structural risks. The Price/Book ratio of 12.34 and Price/Sales of 4.88 reflect high valuation multiples, raising concerns about overvaluation. Additionally, the stock is trading close to its 52-week high, suggesting technical overextension. With a low TTM Yield of 0.81%, income-focused investors might find the dividend unappealing.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$522.73

Institutional Ownership %

1-Year Beta

1.26

Insider Buying % (6 Mo)

Distance to 52-Week High

5.66%

Distance to 52-Week Low

26.95%

EARNINGS SURPRISE %

3.95%

50-DAY SMA

$450.10

200-DAY SMA

$426.69

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.