company background image
TT

Trane TechnologiesNYSE:TT Stock Report

Last Price

US$174.98

Market Cap

US$41.6b

7D

-2.8%

1Y

14.6%

Updated

21 Jan, 2022

Data

Company Financials +
TT fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance4/6
Financial Health4/6
Dividends5/6

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

Earnings are forecast to grow 11.11% per year

Pays a reliable dividend of 1.36%

Risk Analysis

No risks detected for TT from our risk checks.

Trane Technologies Competitors

Johnson Controls International

NYSE:JCI

US$51.2b

Carrier Global

NYSE:CARR

US$41.6b

Carlisle Companies

NYSE:CSL

US$11.9b

Lennox International

NYSE:LII

US$10.4b

Price History & Performance

Summary of all time highs, changes and price drops for Trane Technologies
Historical stock prices
Current Share PriceUS$174.98
52 Week HighUS$207.06
52 Week LowUS$137.98
Beta1.23
1 Month Change-10.81%
3 Month Change-3.41%
1 Year Change14.61%
3 Year Change85.22%
5 Year Change118.73%
Change since IPO1,968.73%

Recent News & Updates

Nov 03

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

TTUS BuildingUS Market
7D-2.8%-8.0%-4.0%
1Y14.6%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

Is TT's price volatile compared to industry and market?
TT volatility
TT Average Weekly Movement3.6%
Building Industry Average Movement5.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
188535,000Dave Regneryhttps://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

How do Trane Technologies's earnings and revenue compare to its market cap?
TT fundamental statistics
Market CapUS$41.56b
Earnings (TTM)US$1.36b
Revenue (TTM)US$13.75b

30.5x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TT income statement (TTM)
RevenueUS$13.75b
Cost of RevenueUS$9.36b
Gross ProfitUS$4.38b
ExpensesUS$3.02b
EarningsUS$1.36b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 31, 2022

Earnings per share (EPS)5.74
Gross Margin31.88%
Net Profit Margin9.92%
Debt/Equity Ratio74.6%

How did TT perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:36
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.