(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 | 23.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 24.7% |
| Relative Tail Risk | -4.99% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.59 |
| Alpha | 2.19 |
| Character TTM | |
|---|---|
| Beta | 0.892 |
| Beta Downside | 0.747 |
| Drawdowns 3y | |
|---|---|
| Max DD | 24.44% |
| CAGR/Max DD | 1.39 |
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) 7.5
| Net Income: 2.93b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -1.69 > 1.0 |
| NWC/Revenue: 6.35% < 20% (prev 7.59%; Δ -1.24% < -1%) |
| CFO/TA 0.14 > 3% & CFO 2.95b > Net Income 2.93b |
| Net Debt (3.49b) to EBITDA (4.30b): 0.81 < 3 |
| Current Ratio: 1.20 > 1.5 & < 3 |
| Outstanding Shares: last quarter (224.4m) vs 12m ago -1.58% < -2% |
| Gross Margin: 36.42% > 18% (prev 0.35%; Δ 3607 % > 0.5%) |
| Asset Turnover: 99.59% > 50% (prev 92.75%; Δ 6.84% > 0%) |
| Interest Coverage Ratio: 16.91 > 6 (EBITDA TTM 4.30b / Interest Expense TTM 231.8m) |
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 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) |
| Altman-Z'' Score: 4.04 = AA |
Beneish M -2.90
| DSRI: 1.10 (Receivables 4.07b/3.39b, Revenue 21.05b/19.39b) |
| GMI: 0.97 (GM 36.42% / 35.28%) |
| AQI: 1.01 (AQ_t 0.53 / AQ_t-1 0.52) |
| SGI: 1.09 (Revenue 21.05b / 19.39b) |
| TATA: -0.00 (NI 2.93b - CFO 2.95b) / TA 21.37b) |
| Beneish M-Score: -2.90 (Cap -4..+1) = A |
What is the price of TT shares?
Over the past week, the price has changed by +7.85%, over one month by +6.81%, over three months by -4.53% and over the past year by +19.04%.
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 | 476.5 | 12.1% |
| Analysts Target Price | 476.5 | 12.1% |
| ValueRay Target Price | 515.7 | 21.3% |
TT Fundamental Data Overview January 31, 2026
P/E Forward = 26.6667
P/S = 4.5036
P/B = 10.498
P/EG = 2.4639
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 = 98.30b USD (94.81b + Debt 4.62b - CCE 1.13b)
Interest Coverage Ratio = 16.91 (Ebit TTM 3.92b / Interest Expense TTM 231.8m)
EV/FCF = 38.53x (Enterprise Value 98.30b / FCF TTM 2.55b)
FCF Yield = 2.60% (FCF TTM 2.55b / Enterprise Value 98.30b)
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 = 4.60 (Enterprise Value 98.30b / 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 = 13.87% (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 = 8.82% (E(94.81b)/V(99.42b) * Re(9.20%) + D(4.62b)/V(99.42b) * Rd(1.20%) * (1-Tc(0.21)))
Discount Rate = 9.20% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.20%
[DCF Debug] Terminal Value 78.65% ; FCFF base≈2.67b ; Y1≈3.29b ; Y5≈5.61b
Fair Price DCF = 350.9 (EV 81.30b - Net Debt 3.49b = Equity 77.81b / Shares 221.7m; r=8.82% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: 66.88 | EPS CAGR: 28.40% | SUE: 0.25 | # QB: 0
Revenue Correlation: 84.65 | Revenue CAGR: 13.52% | SUE: -0.40 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.62 | Chg30d=-0.066 | Revisions Net=-4 | Analysts=12
EPS current Year (2026-12-31): EPS=14.77 | Chg30d=-0.107 | Revisions Net=-3 | Growth EPS=+13.1% | Growth Revenue=+8.6%
EPS next Year (2027-12-31): EPS=16.73 | Chg30d=-0.025 | Revisions Net=+0 | Growth EPS=+13.3% | Growth Revenue=+6.5%