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Trane Technologies plc (TT)

POSITIVE
IndustrialsBuilding Products & EquipmentIreland

Price

$458.25

Market Cap

$101.30B

Fundamental

68

Technical

75

Composite

70

AI Analysis

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Overview

Trane Technologies plc designs, manufactures, sells, and services of solutions for heating, ventilation, air conditioning, and custom and transport refrigeration. It offers air conditioners, exchangers, and handlers; airside and terminal devices; air sourced heat pumps; chillers; coils and condensers; auxiliary power, cold storage, and condensing units; controls contracting and commissioning, decarbonization programs, and gensets; dehumidifiers; energy and water efficiency programs; energy recovery ventilators and power solutions; energy storage; furnaces; home automation; humidifiers; HVAC performance-monitoring products; and indoor air quality assessments and related products for HVAC and transport solutions. The company also provides asset management, building management, bus air purification, bus and rail HVAC, container refrigeration, control, ductless, geothermal, data center and multi-pipe HVAC, package heating and cooling, rail refrigeration, residential air filtration, self and vehicle powered truck refrigeration, temporary heating and cooling, truck refrigeration, unitary, variable refrigerant flow, and trailer refrigeration systems. In addition, it offers industrial process refrigeration, installation contracting, lighting retrofit, medical grade refrigeration, refrigerant reclamation, renewable energy and storage, residential hybrid heating, telematics, thermostats/controls and associated digital, ventilation, and stationary cold storage solutions; packaged rooftop units; rate chambers; residential air filters; thermal energy storage; transport heater products; temperature freezers; energy infrastructure programs and management, repair and maintenance, smart and AI-enabled, and rental services; water source heat pumps; and aftermarket and OEM parts and supplies. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. The company was founded in 1885 and is headquartered in Swords, Ireland.

Balance Sheet & Liquidity

Revenue

$21.32B

Net Income

$2.94B

Free Cash Flow

$2.55B

Total Equity

$8.60B

Total Liabilities

$12.82B

Current Ratio

1.25

Interest Coverage

17.50

Debt/EBITDA

3.23

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Fairly Valued

Fair Value

$525.78

Current Price

$458.25

Margin of Safety

+12.8%

Fair Value Range

$446.70 - $604.85

Estimation Methods

Analyst Target:$521.51
DCF:$569.01
PE-based:$375.40
Graham Growth:$674.90
EPV:$125.04
Analyst Consensus:Buy (19B / 14H / 1S)
Last Earnings Surprise:+0.89%

Valuation Metrics

P/E Ratio

35.01

ROE

34.1%

P/B Ratio

11.78

P/FCF

39.65

Gross Margin

-

ROIC

20.7%

Value Creation (Economic Moat)

ROIC

20.7%

WACC

9.9%

ROIC − WACC

+10.8 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 48.39%
  • Price CAGR 22.92%
  • ROIC 20.7%
  • Debt/Equity ratio
  • Operating Margin 18.6%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 34.8%
  • Revenue Growth 5Y 11.3%
  • Analyst Consensus 56% Buy
  • PEG Ratio 1.17
  • Earnings Quality (OCF/NI) 1.09
  • Share Dilution 0.0%
  • Piotroski F-Score 6/9

Failed (8)

  • P/FCF 39.65
  • P/B Ratio 11.78
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Earnings Surprise avg -0.3%
  • Net Margin Trend 13.8% vs 13.8%

Unavailable (2)

  • Gross Margin NaN%
  • Dividend Payout NaN%

Price Chart

Technical Indicators

RSI (14)

48.83

SMA 50

$465.24

SMA 200

$429.55

MACD

0.28

Volatility

1.8%

Momentum (12m)

8.0%

RSI 48.8, SMA trend bullish, momentum 8.0%.

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.09

High quality: earnings backed by cash

Share Dilution

0.0%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. David S. RegneryChairman of the Board & CEO62
Mr. Christopher J. KuehnExecutive VP & CFO52
Mr. Donald E. SimmonsGroup President of Americas53
Mr. Mingxiao GuoSenior VP & Chief Global Integrated Supply Officer56
Ms. Elizabeth ElwellVP, Chief Accounting Officer & Principal Accounting Officer51
Mr. Zachary A. NagleVice President of Investor Relations-
Ms. Carrie Amendum RuddySenior VP, Chief Communications & Marketing Officer-
Ms. Mairead A. MagnerSenior VP & Chief Human Resources Officer47
Mr. Allen W. GeGroup President of Asia Pacific-
Mr. Jason E. BinghamPresident of Residential HVAC & Supply-

Audit Risk

1

Board Risk

5

Compensation Risk

2

Shareholder Rights Risk

6

Latest News

Recent headlines for TT, sourced from Markets Gazette.

  • 5/11/2026POSITIVE
    If You Invested $100 In Trane Technologies Stock 5 Years Ago, You Would Have This Much Today

    An investment of $100 in Trane Technologies (TT) five years ago would have yielded a substantial return, illustrating the company's strong performance in the HVAC and building solutions sector. While specific figures are not provided in the prompt, the title implies significant capital appreciation, likely driven by factors such as robust earnings growth, strategic acquisitions, and increasing demand for energy-efficient climate control solutions. Investors would have benefited from the company's operational efficiency and its positioning in a growing market.

  • 3/30/2026POSITIVE
    Here's How Much You Would Have Made Owning Trane Technologies Stock In The Last 20 Years

    Trane Technologies Inc. (TT) has delivered substantial returns for its shareholders over the past two decades. While specific figures are not detailed in this summary, the article implies a significant positive performance, suggesting that an investment in TT stock 20 years ago would have yielded considerable profits. This long-term growth trajectory indicates strong business fundamentals, effective management, and resilience in the HVAC and climate solutions sector. Investors looking for stable, long-term growth might consider Trane Technologies as a potential candidate for their portfolio, reflecting its historical ability to outperform.

  • 3/14/2026POSITIVE
    Trane CEO on "Bloomberg This Weekend" C-Suite Saturdays

    Trane Technologies CEO Dave Regnery highlighted the company's strategic pivot from a traditional HVAC provider to a leader in supporting the burgeoning data center market. This expansion into accommodating the massive surge in data center demand signifies a significant growth vector for the company. Investors should note Trane's commitment to sustainability as a core tenet of its operations, which aligns with increasing ESG (Environmental, Social, and Governance) investment trends. The company's ability to adapt and capitalize on new, high-growth sectors like data centers suggests strong future revenue potential and market positioning.

via Markets Gazette

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