(TT) Trane Technologies - Ratings and Ratios
Hvac, Chillers, Controls, Transport-Refrigeration
Dividends
| Dividend Yield | 1.09% |
| Yield on Cost 5y | 3.36% |
| Yield CAGR 5y | 12.20% |
| Payout Consistency | 92.6% |
| Payout Ratio | 28.8% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 26.9% |
| Value at Risk 5%th | 41.9% |
| Relative Tail Risk | -5.24% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.02 |
| Alpha | -15.14 |
| CAGR/Max DD | 1.41 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.494 |
| Beta | 0.931 |
| Beta Downside | 0.744 |
| Drawdowns 3y | |
|---|---|
| Max DD | 24.44% |
| Mean DD | 5.13% |
| Median DD | 3.14% |
Description: TT Trane Technologies December 02, 2025
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, energy-recovery ventilators, and AI-enabled building-management services.
Key financial snapshots (FY 2023) show revenue of roughly $15.5 billion and an adjusted EBITDA margin of about 13 %, reflecting the company’s mix of high-margin aftermarket services and capital-intensive equipment sales. The firm’s earnings are sensitive to three primary drivers: (1) global construction and retro-fit activity, which fuels demand for new HVAC installations; (2) tightening climate-regulation that accelerates adoption of low-GWP refrigerants and decarbonization programs; and (3) commodity price volatility (e.g., copper, steel) that impacts equipment cost structures.
Trane’s strategic focus on energy-efficiency and digital services positions it to capture upside from the projected 5 % CAGR growth in the worldwide HVAC market through 2030, while its legacy in industrial process refrigeration provides a hedge against cyclical residential demand. Recent initiatives include expanding its water-source heat-pump line and scaling a subscription-based “smart-building” platform that bundles predictive maintenance with performance monitoring.
For a deeper quantitative view of TT’s valuation metrics and scenario analysis, the ValueRay platform offers a concise dashboard worth reviewing.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (2.93b TTM) > 0 and > 6% of Revenue (6% = 1.26b TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA -1.69pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 6.35% (prev 7.59%; Δ -1.24pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.14 (>3.0%) and CFO 2.95b > Net Income 2.93b (YES >=105%, WARN >=100%) |
| Net Debt (3.49b) to EBITDA (4.30b) ratio: 0.81 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.20 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (224.4m) change vs 12m ago -1.58% (target <= -2.0% for YES) |
| Gross Margin 36.42% (prev 35.28%; Δ 1.14pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 99.59% (prev 92.75%; Δ 6.84pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 16.91 (EBITDA TTM 4.30b / Interest Expense TTM 231.8m) >= 6 (WARN >= 3) |
Altman Z'' 4.04
| (A) 0.06 = (Total Current Assets 7.86b - Total Current Liabilities 6.52b) / Total Assets 21.37b |
| (B) 0.48 = Retained Earnings (Balance) 10.31b / Total Assets 21.37b |
| (C) 0.19 = EBIT TTM 3.92b / Avg Total Assets 21.14b |
| (D) 0.77 = Book Value of Equity 10.05b / Total Liabilities 13.03b |
| Total Rating: 4.04 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 86.66
| 1. Piotroski 7.50pt |
| 2. FCF Yield 2.69% |
| 3. FCF Margin 12.12% |
| 4. Debt/Equity 0.55 |
| 5. Debt/Ebitda 0.81 |
| 6. ROIC - WACC (= 15.74)% |
| 7. RoE 37.67% |
| 8. Rev. Trend 84.73% |
| 9. EPS Trend 81.39% |
What is the price of TT shares?
Over the past week, the price has changed by +0.05%, over one month by -8.10%, over three months by +0.04% and over the past year by -0.20%.
Is TT a buy, sell or hold?
- Strong Buy: 7
- Buy: 2
- Hold: 15
- Sell: 0
- Strong Sell: 2
What are the forecasts/targets for the TT price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 482 | 17.5% |
| Analysts Target Price | 482 | 17.5% |
| ValueRay Target Price | 530.1 | 29.2% |
TT Fundamental Data Overview November 26, 2025
P/E Trailing = 31.341
P/E Forward = 27.7008
P/S = 4.3331
P/B = 10.9214
P/EG = 2.5633
Beta = 1.187
Revenue TTM = 21.05b USD
EBIT TTM = 3.92b USD
EBITDA TTM = 4.30b USD
Long Term Debt = 3.92b USD (from longTermDebt, last quarter)
Short Term Debt = 694.7m USD (from shortTermDebt, last quarter)
Debt = 4.62b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.49b USD (from netDebt column, last quarter)
Enterprise Value = 94.71b USD (91.22b + Debt 4.62b - CCE 1.13b)
Interest Coverage Ratio = 16.91 (Ebit TTM 3.92b / Interest Expense TTM 231.8m)
FCF Yield = 2.69% (FCF TTM 2.55b / Enterprise Value 94.71b)
FCF Margin = 12.12% (FCF TTM 2.55b / Revenue TTM 21.05b)
Net Margin = 13.93% (Net Income TTM 2.93b / Revenue TTM 21.05b)
Gross Margin = 36.42% ((Revenue TTM 21.05b - Cost of Revenue TTM 13.38b) / Revenue TTM)
Gross Margin QoQ = 36.89% (prev 37.60%)
Tobins Q-Ratio = 4.43 (Enterprise Value 94.71b / Total Assets 21.37b)
Interest Expense / Debt = 1.20% (Interest Expense 55.6m / Debt 4.62b)
Taxrate = 21.21% (231.5m / 1.09b)
NOPAT = 3.09b (EBIT 3.92b * (1 - 21.21%))
Current Ratio = 1.20 (Total Current Assets 7.86b / Total Current Liabilities 6.52b)
Debt / Equity = 0.55 (Debt 4.62b / totalStockholderEquity, last quarter 8.35b)
Debt / EBITDA = 0.81 (Net Debt 3.49b / EBITDA 4.30b)
Debt / FCF = 1.37 (Net Debt 3.49b / FCF TTM 2.55b)
Total Stockholder Equity = 7.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 13.72% (Net Income 2.93b / Total Assets 21.37b)
RoE = 37.67% (Net Income TTM 2.93b / Total Stockholder Equity 7.78b)
RoCE = 33.49% (EBIT 3.92b / Capital Employed (Equity 7.78b + L.T.Debt 3.92b))
RoIC = 24.77% (NOPAT 3.09b / Invested Capital 12.47b)
WACC = 9.03% (E(91.22b)/V(95.83b) * Re(9.44%) + D(4.62b)/V(95.83b) * Rd(1.20%) * (1-Tc(0.21)))
Discount Rate = 9.44% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.20%
[DCF Debug] Terminal Value 77.04% ; FCFE base≈2.67b ; Y1≈3.29b ; Y5≈5.62b
Fair Price DCF = 335.2 (DCF Value 74.32b / Shares Outstanding 221.7m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 81.39 | EPS CAGR: 32.25% | SUE: 0.45 | # QB: 0
Revenue Correlation: 84.73 | Revenue CAGR: 13.52% | SUE: -0.40 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.70 | Chg30d=-0.045 | Revisions Net=-6 | Analysts=12
EPS next Year (2026-12-31): EPS=14.88 | Chg30d=+0.159 | Revisions Net=+11 | Growth EPS=+14.3% | Growth Revenue=+7.7%
Additional Sources for TT Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle