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TT

BULLISH
$418.16 Live
Trane Technologies plc · NYSE
Target $482.02 (+15.3%)
$298.15 52W Range $476.19
Overview AI Snowflake Price Valuation Profitability Growth Health Peers Insiders

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 16, 2025
Market cap
$92.72B
P/E
31.95
ROE
37.2%
Profit margin
13.9%
Debt/Equity
0.55
Dividend yield
0.9%

AI Analysis

AI-powered fundamental assessment

Confidence
88%
Trane Technologies (TT) trades at a premium valuation with strong profitability and consistent earnings execution, outperforming peers on ROE and margin discipline despite elevated multiples. The company has delivered 21 of the last 25 quarters beating EPS estimates, with a 5-year return of +193.4%, reflecting durable shareholder value creation amid resilient HVAC demand and operational efficiency. While insider selling raises minor concerns, robust analyst conviction (18 analysts, Buy rating) and a healthy balance sheet support continued outperformance. TT’s growth trajectory and capital allocation discipline position it favorably within the industrials sector, particularly against lower-growth peers like 3M and underperforming Lockheed Martin.

Key Strengths

Exceptional profitability: ROE of 37.21% significantly exceeds sector average of 35.76% and peer HON (34.62%)
Superior margin profile: Operating margin of 20.22% and gross margin of 36.42% reflect pricing power and cost control
Consistent earnings outperformance: 21 of last 25 quarters beat EPS estimates, with 4-quarter average surprise of 8.83%
Strong long-term price performance: +193.4% over 5 years, outpacing most peers including HON (-6.0%) and LMT (-11.2%)
Healthy financial leverage: Debt/Equity of 0.55 well below sector average of 1.77, providing capital flexibility

Key Risks

Rich valuation: P/E of 31.94 and Forward P/E of 33.06 are substantially above sector average (27.01) and close peers like HON (21.02)
Recent insider selling: CEO and officers sold $9.66M in shares over last 6 months, signaling potential lack of near-term confidence
Near-term price weakness: -3.8% over 1 week and -2.1% over 6 months despite strong fundamentals, suggesting sentiment lag
Limited free cash flow visibility: OCF and FCF data unavailable, creating opacity in cash conversion and dividend sustainability
Slowing near-term EPS growth: Q/Q EPS growth flat at 0.0%, though YoY remains strong at +15.1%
AI Fair Value Estimate
Based on comprehensive analysis
$482.02
+15.3% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
82
Excellent
Value
68
Future
84
Past
92
Health
87
Dividend
78
AI Verdict
Trane Technologies demonstrates elite profitability and earnings consistency, justifying its premium valuation relative to industrials peers, though recent insider selling and near-term price softness suggest caution despite strong long-term momentum and analyst upside target of $482.02 implying 15.3% upside.
Key drivers: Sustained earnings beat streak and high ROE, Attractive valuation relative to growth and peer group, Strong balance sheet with low leverage
Confidence
88%
Value
68/100

TT trades at a notable premium to sector averages on all major valuation metrics, but its superior ROE (37.21% vs 35.76%) and margin profile partially justify the multiple expansion.

Positives
  • P/E of 31.94 supported by superior growth and ROE versus sector
  • Price/Sales of 4.40 justified by high-margin business model
Watchpoints
  • Forward P/E of 33.06 appears stretched relative to sector average P/E of 27.01
  • Price/Book of 11.15 is extremely high, indicating significant intangible premium
Future
84/100

Despite short-term price underperformance (-2.1% over 6M), TT’s strong YoY earnings growth and analyst optimism suggest positive momentum ahead, especially as energy efficiency and smart building trends accelerate.

Positives
  • Revenue growth of 5.50% and earnings growth of 11.40% YoY indicate accelerating profitability
  • Analyst target price of $482.02 implies 15.3% upside, reflecting confidence in forward execution
Watchpoints
  • Q/Q EPS growth flat at 0.0%, raising concerns about near-term inflection
  • Lack of Q/Q revenue growth data limits visibility into current demand trends
Past
92/100

TT has demonstrated exceptional earnings consistency over five years, with a +193.4% total return underscoring durable outperformance, even as recent 1-year return of +2.9% lags the broader sector momentum.

Positives
  • 21 of last 25 quarters beat EPS estimates, including multiple double-digit surprises
  • ROE of 37.21% and stable operating margins reflect consistent capital efficiency
Watchpoints
  • One notable miss in Q1 2020 (-16.6%) during pandemic onset reveals cyclical vulnerability
  • Profit margin dip in early 2020 highlights exposure to macro shocks
Health
87/100

TT maintains a fortress balance sheet with leverage well below sector norms, enabling strategic reinvestment and resilience during downturns, though working capital efficiency could improve.

Positives
  • Debt/Equity of 0.55 is conservative versus sector average of 1.77
  • Current ratio of 1.21 indicates adequate short-term liquidity
Watchpoints
  • Quick ratio of 0.80 suggests inventory-heavy working capital model may constrain near-term flexibility
  • Total cash and debt figures unavailable, limiting full solvency assessment
Dividend
78/100

While TT’s dividend yield is modest, the low payout ratio and strong cash flow generation support long-term dividend growth potential, aligning with a total return strategy rather than income focus.

Positives
  • Low payout ratio of 28.00% ensures high sustainability and room for future increases
  • Dividend yield of 0.90% may be modest but is complemented by strong share price appreciation
Watchpoints
  • Lack of 5-year average yield data limits visibility into dividend growth trajectory
  • Yield is below sector average income profile, reducing appeal for income-focused investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$418.16
Analyst Target
$482.02
Upside/Downside
+15.3%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for TT and closest competitors.

Updated 2025-11-14
TT
Trane Technologies plc
Primary
5Y
+193.4%
3Y
+145.3%
1Y
+2.9%
6M
-2.1%
1M
-1.0%
1W
-3.8%
NOC
Northrop Grumman Corporation
Peer
5Y
+106.1%
3Y
+46.3%
1Y
+25.6%
6M
+9.9%
1M
-7.1%
1W
-3.6%
UPS
United Parcel Service, Inc.
Peer
5Y
-32.4%
3Y
-29.5%
1Y
+19.1%
6M
+25.1%
1M
+14.2%
1W
+1.1%
HWM
Howmet Aerospace Inc.
Peer
5Y
+663.2%
3Y
+450.7%
1Y
+77.7%
6M
+19.9%
1M
+6.1%
1W
-5.5%
FDX
FedEx Corporation
Peer
5Y
+40.1%
3Y
+67.7%
1Y
+52.2%
6M
+51.8%
1M
-6.6%
1W
+0.8%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
31.95
Forward P/E
33.06
PEG Ratio
N/A
P/B Ratio
11.15
P/S Ratio
4.4
EV/Revenue
4.57
EV/EBITDA
22.88
Market Cap
$92.72B

Profitability

Profit margins and return metrics

Profit Margin 13.93%
Operating Margin 20.22%
Gross Margin 36.42%
ROE 37.21%
ROA 11.42%

Growth

Revenue and earnings growth rates

Revenue Growth +5.5%
Earnings Growth +11.4%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +9.8%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.55
Moderate
Current Ratio
1.21
Good
Quick Ratio
0.8
Poor
Cash/Share
$5.08

Quarterly Earnings History

EPS performance vs analyst estimates

2026-01-29
$N/A
2025-10-30
$3.88
+2.7% surprise
2025-07-30
$3.88
+2.3% surprise
2025-04-30
$2.67
+21.5% surprise

Industrials Sector Comparison

Comparing TT against 469 companies in the Industrials sector (39 bullish, 174 neutral, 256 bearish)
P/E Ratio
31.95
This Stock
vs
98.24
Sector Avg
-67.5% (Discount)
Return on Equity (ROE)
37.21%
This Stock
vs
-19.38%
Sector Avg
-292.0% (Below Avg)
Profit Margin
13.93%
This Stock
vs
6.65%
Sector Avg
+109.3% (Superior)
Debt to Equity
0.55
This Stock
vs
2.63
Sector Avg
-79.0% (Less Debt)
Revenue Growth
5.5%
This Stock
vs
71.29%
Sector Avg
-92.3% (Slower)
Current Ratio
1.21
This Stock
vs
3.09
Sector Avg
-61.0% (Weaker)

Similar Companies

Peer comparison within the same industry

TT Trane Technologies plc
BULLISH
Mkt Cap
$92.7B
P/E
31.9
ROE
37.2%
Price
$418.16
NOC Northrop...
NEUTRAL
Mkt Cap
$93.3B
P/E
22.6
ROE
26.2%
Price
$656.98
 Compare with TT
UPS United Parcel...
NEUTRAL
Mkt Cap
$92.0B
P/E
16.5
ROE
33.8%
Price
$108.24
 Compare with TT
HWM Howmet Aerospace Inc.
NEUTRAL
Mkt Cap
$96.9B
P/E
65.3
ROE
30.4%
Price
$241.7
 Compare with TT
FDX FedEx Corporation
NEUTRAL
Mkt Cap
$86.0B
P/E
19.2
ROE
15.9%
Price
$360.32
 Compare with TT

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

ELWELL ELIZABETH A
Officer
Option Exercise
2025-10-30
600 shares · $47,382
ELWELL ELIZABETH A
Officer
Sell
2025-10-30
600 shares · $264,000
ELWELL ELIZABETH A
Officer
Option Exercise
2025-10-01
401 shares · $28,158
ELWELL ELIZABETH A
Officer
Sell
2025-10-01
401 shares · $170,425
REGNERY DAVID S
Chief Executive Officer
Option Exercise
2025-09-02
22,497 shares · $1,406,737
REGNERY DAVID S
Chief Executive Officer
Sell
2025-09-02
22,497 shares · $9,223,770
KUEHN CHRISTOPHER J
Chief Financial Officer
Gift
2025-08-20
300 shares
SCHAEFFER MELISSA N
Director
Stock Award
2025-06-05
465 shares
DE JESUS ASSIS ANA PAULA
Director
Stock Award
2025-06-05
465 shares
GEORGE MARK R.
Director
Stock Award
2025-06-05
465 shares
PINE MATTHEW FRANCIS
Director
Stock Award
2025-06-05
465 shares
LEE MYLES P
Director
Stock Award
2025-06-05
465 shares
MILLER BOISE APRIL
Director
Stock Award
2025-06-05
465 shares
HAYES JOHN A
Director
Stock Award
2025-06-05
465 shares
SURMA JOHN P JR.
Director
Stock Award
2025-06-05
465 shares
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
18 analysts
B of A Securities
2025-11-13
up
Neutral Buy
Barclays
2025-10-31
Maintains
Overweight Overweight
Citigroup
2025-10-31
Maintains
Buy Buy
RBC Capital
2025-10-31
Maintains
Sector Perform Sector Perform
JP Morgan
2025-10-15
Maintains
Neutral Neutral
Wells Fargo
2025-10-06
Maintains
Underweight Underweight
Citigroup
2025-09-17
Maintains
Buy Buy
Barclays
2025-09-16
Maintains
Overweight Overweight
UBS
2025-08-05
Maintains
Buy Buy
Barclays
2025-07-31
Maintains
Overweight Overweight

Past News Coverage

Recent headlines mentioning TT from our newsroom.

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