(TT) Trane Technologies - Overview
Stock: Hvac, Chillers, Heat-Pumps, Refrigeration, Controls
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.95% |
| Yield on Cost 5y | 2.70% |
| Yield CAGR 5y | 12.35% |
| Payout Consistency | 97.3% |
| Payout Ratio | 28.2% |
| Risk 5d forecast | |
|---|---|
| Volatility | 24.5% |
| Relative Tail Risk | -4.93% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.87 |
| Alpha | 13.86 |
| Character TTM | |
|---|---|
| Beta | 0.896 |
| Beta Downside | 0.750 |
| Drawdowns 3y | |
|---|---|
| Max DD | 24.44% |
| CAGR/Max DD | 1.53 |
Description: TT Trane Technologies January 27, 2026
Trane Technologies plc (NYSE:TT) designs, manufactures and services a broad portfolio of heating, ventilation, air-conditioning (HVAC) and transport-refrigeration solutions, ranging from air-source heat pumps and chillers to digital controls, decarbonisation programs and AI-enabled asset-management services. The firm, formerly Ingersoll-Rand, operates globally from its headquarters in Swords, Ireland, and serves residential, commercial, industrial and transportation markets.
In its most recent fiscal year (2023), Trane reported revenue of **$15.6 billion**, an adjusted earnings-per-share of **$3.28**, and an operating margin of **13%**. The company’s order backlog stood at **$12 billion**, providing visibility into near-term demand, while free-cash-flow generation reached **$1.2 billion**, supporting dividend payouts and ongoing R&D investment.
Key macro drivers for Trane include: (1) accelerating global HVAC demand, with the market projected to grow at a **5.5% CAGR through 2030** as building-code tightening and climate-change mitigation push higher efficiency standards; (2) rising construction activity in the United States, where total construction spending rose **4% YoY** in Q4 2023, bolstering new-build HVAC installations; and (3) increasing adoption of low-global-warming-potential refrigerants, which is reshaping product mix toward heat-pump and electrified solutions.
For a deeper quantitative assessment, see the ValueRay dashboard.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income: 2.92b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.13 > 0.02 and ΔFCF/TA -0.50 > 1.0 |
| NWC/Revenue: 7.39% < 20% (prev 6.40%; Δ 1.00% < -1%) |
| CFO/TA 0.15 > 3% & CFO 3.22b > Net Income 2.92b |
| Net Debt (2.85b) to EBITDA (4.28b): 0.67 < 3 |
| Current Ratio: 1.25 > 1.5 & < 3 |
| Outstanding Shares: last quarter (223.6m) vs 12m ago -1.63% < -2% |
| Gross Margin: 36.16% > 18% (prev 0.36%; Δ 3580 % > 0.5%) |
| Asset Turnover: 102.6% > 50% (prev 98.47%; Δ 4.12% > 0%) |
| Interest Coverage Ratio: 17.17 > 6 (EBITDA TTM 4.28b / Interest Expense TTM 227.5m) |
Altman Z'' 4.02
| A: 0.07 (Total Current Assets 7.86b - Total Current Liabilities 6.29b) / Total Assets 21.42b |
| B: 0.48 (Retained Earnings 10.31b / Total Assets 21.42b) |
| C: 0.19 (EBIT TTM 3.91b / Avg Total Assets 20.78b) |
| D: 0.67 (Book Value of Equity 8.60b / Total Liabilities 12.82b) |
| Altman-Z'' Score: 4.02 = AA |
Beneish M -3.03
| DSRI: 0.97 (Receivables 3.24b/3.09b, Revenue 21.32b/19.84b) |
| GMI: 0.99 (GM 36.16% / 35.69%) |
| AQI: 0.99 (AQ_t 0.53 / AQ_t-1 0.54) |
| SGI: 1.07 (Revenue 21.32b / 19.84b) |
| TATA: -0.01 (NI 2.92b - CFO 3.22b) / TA 21.42b) |
| Beneish M-Score: -3.03 (Cap -4..+1) = AA |
What is the price of TT shares?
Over the past week, the price has changed by +8.13%, over one month by +19.33%, over three months by +4.64% and over the past year by +28.35%.
Is TT a buy, sell or hold?
- StrongBuy: 7
- Buy: 2
- Hold: 15
- Sell: 0
- StrongSell: 2
What are the forecasts/targets for the TT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 483.8 | 6.4% |
| Analysts Target Price | 483.8 | 6.4% |
| ValueRay Target Price | 585.4 | 28.7% |
TT Fundamental Data Overview February 07, 2026
P/E Forward = 29.9401
P/S = 4.5517
P/B = 11.3745
P/EG = 2.7671
Revenue TTM = 21.32b USD
EBIT TTM = 3.91b USD
EBITDA TTM = 4.28b USD
Long Term Debt = 3.92b USD (from longTermDebt, last quarter)
Short Term Debt = 693.0m USD (from shortTermDebt, last quarter)
Debt = 4.62b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.85b USD (from netDebt column, last quarter)
Enterprise Value = 99.90b USD (97.05b + Debt 4.62b - CCE 1.76b)
Interest Coverage Ratio = 17.17 (Ebit TTM 3.91b / Interest Expense TTM 227.5m)
EV/FCF = 35.19x (Enterprise Value 99.90b / FCF TTM 2.84b)
FCF Yield = 2.84% (FCF TTM 2.84b / Enterprise Value 99.90b)
FCF Margin = 13.32% (FCF TTM 2.84b / Revenue TTM 21.32b)
Net Margin = 13.69% (Net Income TTM 2.92b / Revenue TTM 21.32b)
Gross Margin = 36.16% ((Revenue TTM 21.32b - Cost of Revenue TTM 13.61b) / Revenue TTM)
Gross Margin QoQ = 34.09% (prev 36.89%)
Tobins Q-Ratio = 4.66 (Enterprise Value 99.90b / Total Assets 21.42b)
Interest Expense / Debt = 1.20% (Interest Expense 55.6m / Debt 4.62b)
Taxrate = 16.57% (122.8m / 741.3m)
NOPAT = 3.26b (EBIT 3.91b * (1 - 16.57%))
Current Ratio = 1.25 (Total Current Assets 7.86b / Total Current Liabilities 6.29b)
Debt / Equity = 0.54 (Debt 4.62b / totalStockholderEquity, last quarter 8.60b)
Debt / EBITDA = 0.67 (Net Debt 2.85b / EBITDA 4.28b)
Debt / FCF = 1.00 (Net Debt 2.85b / FCF TTM 2.84b)
Total Stockholder Equity = 8.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.04% (Net Income 2.92b / Total Assets 21.42b)
RoE = 36.17% (Net Income TTM 2.92b / Total Stockholder Equity 8.07b)
RoCE = 32.58% (EBIT 3.91b / Capital Employed (Equity 8.07b + L.T.Debt 3.92b))
RoIC = 25.97% (NOPAT 3.26b / Invested Capital 12.55b)
WACC = 8.85% (E(97.05b)/V(101.67b) * Re(9.22%) + D(4.62b)/V(101.67b) * Rd(1.20%) * (1-Tc(0.17)))
Discount Rate = 9.22% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.38%
[DCF Debug] Terminal Value 78.56% ; FCFF base≈2.81b ; Y1≈3.47b ; Y5≈5.91b
Fair Price DCF = 371.3 (EV 85.17b - Net Debt 2.85b = Equity 82.32b / Shares 221.7m; r=8.85% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 66.88 | EPS CAGR: 28.40% | SUE: 0.25 | # QB: 0
Revenue Correlation: 80.65 | Revenue CAGR: 12.07% | SUE: 0.25 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.52 | Chg30d=-0.163 | Revisions Net=-7 | Analysts=19
EPS current Year (2026-12-31): EPS=14.82 | Chg30d=-0.059 | Revisions Net=+1 | Growth EPS=+13.5% | Growth Revenue=+8.8%
EPS next Year (2027-12-31): EPS=16.79 | Chg30d=+0.034 | Revisions Net=+4 | Growth EPS=+13.3% | Growth Revenue=+7.8%