Trane Technologies
Market Cap
US$21.9b
Last Updated
2020/07/11 23:53 UTC
Data Sources
Company Financials +
Executive Summary
Trane Technologies plc provides climate control solutions for buildings, homes, and transportation.
Snowflake Analysis
Established dividend payer with acceptable track record.
Similar Companies
Share Price & News
How has Trane Technologies's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.2%
TT
1.3%
US Building
2.3%
US Market
1 Year Return
-27.6%
TT
-8.1%
US Building
6.7%
US Market
Return vs Industry: TT underperformed the US Building industry which returned -8.1% over the past year.
Return vs Market: TT underperformed the US Market which returned 6.7% over the past year.
Shareholder returns
| TT | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 1.3% | 2.3% |
| 30 Day | 2.1% | 6.0% | 7.4% |
| 90 Day | 0.04% | 22.1% | 17.9% |
| 1 Year | -4.9%-27.6% | -1.3%-8.1% | 9.0%6.7% |
| 3 Year | 35.1%-1.3% | 11.2%0.9% | 36.6%27.7% |
| 5 Year | 93.1%35.5% | 45.7%22.1% | 64.2%46.1% |
Price Volatility Vs. Market
How volatile is Trane Technologies's share price compared to the market and industry in the last 5 years?
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Ingersoll-Rand Plc Just Released Its Full-Year Results And Analysts Are Updating Their EstimatesValuation
Is Trane Technologies undervalued compared to its fair value and its price relative to the market?
17.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TT ($91.64) is trading above our estimate of fair value ($54.77)
Significantly Below Fair Value: TT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TT is good value based on its PE Ratio (17.3x) compared to the US Building industry average (19.2x).
PE vs Market: TT is poor value based on its PE Ratio (17.3x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: TT is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: TT is overvalued based on its PB Ratio (3.8x) compared to the US Building industry average (2.3x).
Next Steps
Future Growth
How is Trane Technologies forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
18.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TT's forecast earnings growth (18.7% per year) is above the savings rate (2.2%).
Earnings vs Market: TT's earnings (18.7% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: TT's earnings are forecast to grow, but not significantly.
Revenue vs Market: TT's revenue (5.4% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: TT's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TT's Return on Equity is forecast to be low in 3 years time (17.1%).
Next Steps
Past Performance
How has Trane Technologies performed over the past 5 years?
10.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TT has high quality earnings.
Growing Profit Margin: TT's current net profit margins (7.8%) are lower than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: TT's earnings have grown by 10.4% per year over the past 5 years.
Accelerating Growth: TT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TT had negative earnings growth (-7.1%) over the past year, making it difficult to compare to the Building industry average (-6.8%).
Return on Equity
High ROE: TT's Return on Equity (22.3%) is considered high.
Next Steps
Financial Health
How is Trane Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: TT's short term assets ($6.6B) exceed its short term liabilities ($4.2B).
Long Term Liabilities: TT's short term assets ($6.6B) do not cover its long term liabilities ($7.6B).
Debt to Equity History and Analysis
Debt Level: TT's debt to equity ratio (96.3%) is considered high.
Reducing Debt: TT's debt to equity ratio has increased from 78.4% to 96.3% over the past 5 years.
Debt Coverage: TT's debt is well covered by operating cash flow (29.5%).
Interest Coverage: TT's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Next Steps
Dividend
What is Trane Technologies's current dividend yield, its reliability and sustainability?
2.31%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TT's dividend (2.31%) is higher than the bottom 25% of dividend payers in the US market (1.68%).
High Dividend: TT's dividend (2.31%) is low compared to the top 25% of dividend payers in the US market (4.6%).
Stability and Growth of Payments
Stable Dividend: TT's dividends per share have been stable in the past 10 years.
Growing Dividend: TT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40%), TT's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: TT's dividends in 3 years are forecast to be well covered by earnings (41.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Mike Lamach (56yo)
10.42yrs
Tenure
US$24,217,128
Compensation
Mr. Michael W. Lamach, also known as Mike, serves as the Chief Executive Officer of Trane Technologies plc since February 4, 2010 and also serves as its Chairman since June 2010. Mr. Lamach serves as the C ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD24.22M) is above average for companies of similar size in the US market ($USD11.50M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.42yrs | US$24.22m | 0.085% $18.6m | |
| President & COO | 0.50yr | US$7.00m | 0.017% $3.7m | |
| Executive VP | no data | US$3.05m | 0.0080% $1.7m | |
| EVP, Chief Human Resources | 9.67yrs | US$5.06m | 0.023% $4.9m | |
| Senior VP & CFO | 0.50yr | no data | 0.0094% $2.1m | |
| VP & Chief Accounting Officer | 0.50yr | no data | 0.00093% $203.9k | |
| Senior VP & Chief Information Officer | 7.5yrs | no data | no data | |
| Vice President of Investor Relations | no data | no data | no data | |
| Senior VP & General Counsel | 1.25yrs | no data | 0.0071% $1.6m | |
| President of Asia Pacific HVAC & Transport | 0.25yr | no data | no data |
1.3yrs
Average Tenure
56yo
Average Age
Experienced Management: TT's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 10.42yrs | US$24.22m | 0.085% $18.6m | |
| Executive VP | no data | US$3.05m | 0.0080% $1.7m | |
| EVP, Chief Human Resources | 9.67yrs | US$5.06m | 0.023% $4.9m | |
| Member of Advisory Council | no data | US$3.01m | no data | |
| Executive Director of CEES & Member of Advisory Council | 9.67yrs | no data | no data | |
| Independent Director | 13.5yrs | US$320.06k | 0.012% $2.6m | |
| Lead Independent Director | 10.5yrs | US$362.56k | 0.0018% $399.0k | |
| Independent Director | 23.5yrs | US$325.06k | 0.012% $2.6m | |
| Independent Director | 7.5yrs | US$335.06k | 0.0038% $841.8k | |
| Independent Director | 19.5yrs | US$327.56k | 0.012% $2.7m |
10.3yrs
Average Tenure
66yo
Average Age
Experienced Board: TT's board of directors are seasoned and experienced ( 10.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Trane Technologies plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Trane Technologies plc
- Ticker: TT
- Exchange: NYSE
- Founded: 1885
- Industry: Building Products
- Sector: Capital Goods
- Market Cap: US$21.921b
- Shares outstanding: 239.21m
- Website: https://www.tranetechnologies.com
Number of Employees
Location
- Trane Technologies plc
- 170/175 Lakeview Drive
- Airside Business Park
- Swords
- Co. Dublin
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| TT | NYSE (New York Stock Exchange) | Yes | Common Shares of $1 | US | USD | Jan 1968 |
| 0Y2S | LSE (London Stock Exchange) | Yes | Common Shares of $1 | GB | USD | Jan 1968 |
| 4CO | DB (Deutsche Boerse AG) | Yes | Common Shares of $1 | DE | EUR | Jan 1968 |
| I1RP34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Trane Technologies plc provides climate control solutions for buildings, homes, and transportation. It offers offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation products; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality; industrial refrigeration products; large and light commercial unitary products;motor replacements; refrigerant reclamation products; thermostats/controls; transport heater products; variable refrigerant flow products; and water source heat pumps. It also provides building management, control, ductless, geothermal, package heating and cooling, temporary heating and cooling, and unitary systems; bus, rail, and multi-pipe heating, ventilation, and air conditioning systems; and container, cryogenic, diesel-powered, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration systems, as well as aftermarket and OEM parts and supplies. In addition, it offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. Trane Technologies plc markets and sells its products under the American Standard, Nexia, Thermo King, and Trane brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. The company was formerly known as Ingersoll-Rand Plc and changed its name to Trane Technologies plc in March 2020. Trane Technologies plc was founded in 1885 and is headquartered in Swords, Ireland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/11 23:53 |
| End of Day Share Price | 2020/07/10 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.