Trane Technologies (TT) Stock Analysis
This is a peer-relative look at Trane Technologies (TT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Capital Goods peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | TT |
|---|---|
| Name | Trane Technologies plc |
| Country/Region | Ireland |
| GICS Sector | Industrials |
| GICS Industry Group | Capital Goods |
| GICS Industry | Building Products |
| GICS Sub-Industry | Building Products |
| Market Capitalization | 87.94 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Total Return (1Y) | -2.56% | 6.84% |
| Total Return (3Y, Annualized) | 25.06% | 17.66% |
| Total Return (5Y, Annualized) | 18.70% | 9.09% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 30.26% | 44.38% |
| Beta (5Y) | 1.18 | 1.19 |
| Max Drawdown (5Y) | -39.76% | -49.95% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.23 | 0.06 |
| Sortino Ratio (1Y) | -0.31 | 0.09 |
Profitability
ROE (TTM)
Trane Technologies (TT) posts ROE of 36.94%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
TT
Capital Goods industry group
36.94%
Group distribution
- Max
- 40.55%
- TT
- 36.94%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Largest peers
- GEV
- 93.04%
- CAT
- 56.14%
- GE
- 50.17%
- TT
- 36.94%
- DE
- 18.24%
- RTX
- 12.85%
- BA
- --
Net Margin (TTM)
Trane Technologies (TT) keeps 13.56% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
TT
Capital Goods industry group
13.56%
Group distribution
- Max
- 27.47%
- TT
- 13.56%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Largest peers
- GEV
- 23.54%
- GE
- 17.31%
- CAT
- 15.21%
- TT
- 13.56%
- DE
- 10.17%
- RTX
- 8.75%
- BA
- 8.07%
Operating Margin (TTM)
Trane Technologies (TT) turns 19.85% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
TT
Capital Goods industry group
19.85%
Group distribution
- Max
- 36.60%
- TT
- 19.85%
- Q3
- 18.33%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Largest peers
- CAT
- 20.19%
- TT
- 19.85%
- GE
- 18.49%
- RTX
- 15.54%
- DE
- 13.37%
- GEV
- 12.77%
- BA
- 0.30%
Profitability Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| ROE (TTM) | 36.94% | 12.12% |
| ROA (TTM) | 11.42% | 5.29% |
| Net Margin (TTM) | 13.56% | 6.30% |
| Operating Margin (TTM) | 19.85% | 11.12% |
| Gross Margin (TTM) | 34.99% | 29.63% |
Growth
Revenue Growth
Trane Technologies (TT) grew revenue 7.48%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Trane Technologies (TT) grew earnings per share 15.48%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 7.48% | 8.11% |
| Revenue Growth (3Y CAGR) | 10.06% | 6.45% |
| EPS Growth (YoY) | 15.48% | 5.45% |
| EPS Growth (3Y CAGR) | 20.17% | 7.15% |
Financial Strength
Current Ratio (MRQ)
Trane Technologies (TT) has current ratio of 1.12, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.
TT
Capital Goods industry group
1.12
Group distribution
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- TT
- 1.12
- Min
- 0.36
Largest peers
- DE
- 2.13
- CAT
- 1.42
- BA
- 1.13
- TT
- 1.12
- RTX
- 1.05
- GE
- 0.98
- GEV
- 0.83
Debt / Equity (MRQ)
Trane Technologies (TT) has debt-to-equity ratio of 0.46, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
TT
Capital Goods industry group
0.46
Group distribution
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TT
- 0.46
- Q1
- 0.29
- Min
- 0.00
Largest peers
- BA
- 7.39
- DE
- 2.30
- CAT
- 2.10
- GE
- 1.16
- RTX
- 0.55
- TT
- 0.46
- GEV
- 0.30
Financial Strength Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 2.08 |
| Debt / Equity (MRQ) | 0.46 | 0.60 |
| Net Debt / EBITDA | 0.66 | 1.78 |
Dividends
Dividend Yield (TTM)
Trane Technologies (TT) has dividend yield of 1.04%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
TT
Capital Goods industry group
1.04%
Group distribution
- Max
- 2.66%
- Q3
- 1.14%
- TT
- 1.04%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 1.47%
- CAT
- 1.13%
- TT
- 1.04%
- DE
- 0.98%
- GE
- 0.56%
- GEV
- 0.26%
- BA
- 0.00%
Dividend Payout Ratio (TTM)
Trane Technologies (TT) has payout ratio of 28.42%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
TT
Capital Goods industry group
28.42%
Group distribution
- Max
- 67.39%
- TT
- 28.42%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- RTX
- 45.85%
- DE
- 36.02%
- TT
- 28.42%
- CAT
- 24.18%
- GE
- 20.23%
- GEV
- 4.59%
- BA
- 0.00%
Dividend Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 1.04% | 0.24% |
| Dividend Payout Ratio (TTM) | 28.42% | 6.86% |
Valuation
P/E Ratio (TTM)
Trane Technologies (TT) trades at P/E ratio of 27.92, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
TT
Capital Goods industry group
27.92
Group distribution
- Max
- 59.38
- Q3
- 35.92
- TT
- 27.92
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
Largest peers
- DE
- 37.33
- GE
- 36.94
- RTX
- 30.82
- TT
- 27.92
- CAT
- 21.92
- GEV
- 20.32
- BA
- 17.89
P/S Ratio (TTM)
Trane Technologies (TT) trades at 3.79 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
TT
Capital Goods industry group
3.79
Group distribution
- Max
- 7.54
- TT
- 3.79
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
Largest peers
- GE
- 6.38
- GEV
- 4.65
- TT
- 3.79
- DE
- 3.78
- CAT
- 3.29
- RTX
- 2.66
- BA
- 1.45
P/B Ratio (MRQ)
Trane Technologies (TT) trades at 9.66 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
TT
Capital Goods industry group
9.66
Group distribution
- TT
- 9.66
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Largest peers
- BA
- 20.99
- GE
- 19.06
- GEV
- 18.00
- CAT
- 11.90
- TT
- 9.66
- DE
- 6.47
- RTX
- 3.69
Valuation Metrics
| Metric | Current stock: TT | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 27.92 | 25.41 |
| P/S Ratio (TTM) | 3.79 | 2.15 |
| P/B Ratio (MRQ) | 9.66 | 3.12 |
| Free Cash Flow Yield (TTM) | 3.94% | 3.03% |