| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 4/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
TT Stock Overview
Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services climate control products for heating, ventilation, air conditioning, and transport solutions.
Rewards
Risk Analysis
No risks detected for TT from our risk checks.
Trane Technologies Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$174.98 |
| 52 Week High | US$207.06 |
| 52 Week Low | US$137.98 |
| Beta | 1.23 |
| 1 Month Change | -10.81% |
| 3 Month Change | -3.41% |
| 1 Year Change | 14.61% |
| 3 Year Change | 85.22% |
| 5 Year Change | 118.73% |
| Change since IPO | 1,968.73% |
Recent News & Updates
Trane Is A Great Company But Currently Overvalued
Trane Technologies Plc is a manufacturer of heating, ventilating and air conditioning (HVAC) systems and building management systems and controls. The company is experiencing secular tailwinds thanks to several mega-trends including energy efficiency and smart buildings. The shares have performed well and are now relatively expensive, so we recommend waiting before starting a new position in the name.
Shareholder Returns
| TT | US Building | US Market | |
|---|---|---|---|
| 7D | -2.8% | -8.0% | -4.0% |
| 1Y | 14.6% | 16.3% | 6.6% |
Return vs Industry: TT underperformed the US Building industry which returned 17.8% over the past year.
Return vs Market: TT exceeded the US Market which returned 7.7% over the past year.
Price Volatility
| TT volatility | |
|---|---|
| TT Average Weekly Movement | 3.6% |
| Building Industry Average Movement | 5.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.7% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: TT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: TT's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1885 | 35,000 | Dave Regnery | https://www.tranetechnologies.com |
Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services climate control products for heating, ventilation, air conditioning, and transport solutions. It 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 assessments and related 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. The company 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, electric-powered trailer and truck, hybrid-powered trailer, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration systems, as well as aftermarket and OEM parts and supplies.
Trane Technologies Fundamentals Summary
| TT fundamental statistics | |
|---|---|
| Market Cap | US$41.56b |
| Earnings (TTM) | US$1.36b |
| Revenue (TTM) | US$13.75b |
30.5x
P/E Ratio3.0x
P/S RatioIs TT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TT income statement (TTM) | |
|---|---|
| Revenue | US$13.75b |
| Cost of Revenue | US$9.36b |
| Gross Profit | US$4.38b |
| Expenses | US$3.02b |
| Earnings | US$1.36b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 31, 2022
| Earnings per share (EPS) | 5.74 |
| Gross Margin | 31.88% |
| Net Profit Margin | 9.92% |
| Debt/Equity Ratio | 74.6% |
How did TT perform over the long term?
See historical performance and comparisonDividends
1.3%
Current Dividend Yield40%
Payout RatioValuation
Is Trane Technologies undervalued compared to its fair value and its price relative to the market?
30.47x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TT ($173.75) is trading above our estimate of fair value ($132.8)
Significantly Below Fair Value: TT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: TT is poor value based on its PE Ratio (30.3x) compared to the US Building industry average (20.6x).
PE vs Market: TT is poor value based on its PE Ratio (30.3x) compared to the US market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: TT is poor value based on its PEG Ratio (2.7x)
Price to Book Ratio
PB vs Industry: TT is overvalued based on its PB Ratio (6.4x) compared to the US Building industry average (2.5x).
Future Growth
How is Trane Technologies forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
11.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TT's forecast earnings growth (11.1% per year) is above the savings rate (2%).
Earnings vs Market: TT's earnings (11.1% per year) are forecast to grow slower than the US market (13.1% per year).
High Growth Earnings: TT's earnings are forecast to grow, but not significantly.
Revenue vs Market: TT's revenue (5.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: TT's revenue (5.3% 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 high in 3 years time (27.8%)
Past Performance
How has Trane Technologies performed over the past 5 years?
-4.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TT has high quality earnings.
Growing Profit Margin: TT's current net profit margins (9.9%) are higher than last year (7.6%).
Past Earnings Growth Analysis
Earnings Trend: TT's earnings have declined by 4.1% per year over the past 5 years.
Accelerating Growth: TT's earnings growth over the past year (45%) exceeds its 5-year average (-4.1% per year).
Earnings vs Industry: TT earnings growth over the past year (45%) underperformed the Building industry 45%.
Return on Equity
High ROE: TT's Return on Equity (21.2%) is considered high.
Financial Health
How is Trane Technologies's financial position?
Financial Position Analysis
Short Term Liabilities: TT's short term assets ($7.0B) exceed its short term liabilities ($4.3B).
Long Term Liabilities: TT's short term assets ($7.0B) do not cover its long term liabilities ($7.4B).
Debt to Equity History and Analysis
Debt Level: TT's net debt to equity ratio (32.4%) is considered satisfactory.
Reducing Debt: TT's debt to equity ratio has increased from 59.6% to 74.6% over the past 5 years.
Debt Coverage: TT's debt is well covered by operating cash flow (36.9%).
Interest Coverage: TT's interest payments on its debt are well covered by EBIT (8.4x coverage).
Balance Sheet
Dividend
What is Trane Technologies's current dividend yield, its reliability and sustainability?
1.35%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: TT's dividend (1.36%) is higher than the bottom 25% of dividend payers in the US market (1.34%).
High Dividend: TT's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.49%).
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 (40.4%), 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 (34.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Dave Regnery (57 yo)
0.50
Tenure
US$8,764,223
Compensation
Mr. David S. Regnery, also known as Dave, serves as Chair of the Board of Trane Technologies plc since January 1, 2022. He serves as Chief Executive Officer and Director at Trane Technologies plc (formerly...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD8.76M) is about average for companies of similar size in the US market ($USD11.31M).
Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: TT's management team is considered experienced (4.4 years average tenure).
Board Members
Experienced Board: TT's board of directors are seasoned and experienced ( 11.2 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Trane Technologies plc's 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
- Implied Market Cap: US$41.565b
- Shares outstanding: 237.54m
- Website: https://www.tranetechnologies.com
Number of Employees
Location
- Trane Technologies plc
- 170/175 Lakeview Drive
- Airside Business Park
- Swords
- Co. Dublin
- Ireland
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:36 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.