Trane Technologies
Market Cap
US$43.9b
Last Updated
2021/05/09 22:49 UTC
Data Sources
Company Financials +
Executive Summary
Trane Technologies plc, together with its subsidiaries, designs, manufactures, sells, and services climate control products for heating, ventilation, air conditioning, and transport solutions. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with adequate balance sheet.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TT's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
5.7%
TT
4.6%
US Building
0.2%
US Market
1 Year Return
117.7%
TT
109.8%
US Building
49.9%
US Market
Return vs Industry: TT exceeded the US Building industry which returned 111% over the past year.
Return vs Market: TT exceeded the US Market which returned 49.9% over the past year.
Shareholder returns
| TT | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.7% | 4.6% | 0.2% |
| 30 Day | 8.3% | 7.4% | 1.5% |
| 90 Day | 23.3% | 19.4% | 3.3% |
| 1 Year | 121.5%117.7% | 112.6%109.8% | 52.4%49.9% |
| 3 Year | 181.8%106.8% | 106.8%88.9% | 63.7%53.4% |
| 5 Year | 297.3%180.0% | 160.8%123.6% | 130.6%104.9% |
Long-Term Price Volatility Vs. Market
How volatile is Trane Technologies's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Here's What Analysts Are Forecasting For Ingersoll-Rand Plc After Its Yearly Results1 year ago | Simply Wall St
Ingersoll-Rand Plc (NYSE:IR) Insiders Have Been Selling1 year ago | Simply Wall St
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?
37.97x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: TT ($183.68) is trading above our estimate of fair value ($96.42)
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 (38x) compared to the US Building industry average (26.5x).
PE vs Market: TT is poor value based on its PE Ratio (38x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: TT is poor value based on its PEG Ratio (5.1x)
Price to Book Ratio
PB vs Industry: TT is overvalued based on its PB Ratio (7x) compared to the US Building industry average (3.1x).
Future Growth
How is Trane Technologies forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TT's forecast earnings growth (7.5% per year) is above the savings rate (2%).
Earnings vs Market: TT's earnings (7.5% per year) are forecast to grow slower than the US market (15.1% per year).
High Growth Earnings: TT's earnings are forecast to grow, but not significantly.
Revenue vs Market: TT's revenue (5.2% per year) is forecast to grow slower than the US market (9.1% per year).
High Growth Revenue: TT's revenue (5.2% 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 (28.9%)
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 (9.1%) are higher than last year (8.1%).
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 (10.5%) exceeds its 5-year average (-4.1% per year).
Earnings vs Industry: TT earnings growth over the past year (10.5%) underperformed the Building industry 23.3%.
Return on Equity
High ROE: TT's Return on Equity (18.6%) is considered low.
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 ($7.3B).
Debt to Equity History and Analysis
Debt Level: TT's debt to equity ratio (72.2%) is considered high.
Reducing Debt: TT's debt to equity ratio has reduced from 76.3% to 72.2% over the past 5 years.
Debt Coverage: TT's debt is well covered by operating cash flow (44.4%).
Interest Coverage: TT's interest payments on its debt are well covered by EBIT (7.4x coverage).
Balance Sheet
Dividend
What is Trane Technologies's current dividend yield, its reliability and sustainability?
1.28%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: TT's dividend (1.28%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: TT's dividend (1.28%) is low compared to the top 25% of dividend payers in the US market (3.4%).
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 (45.1%), 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 (37% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Mike Lamach (56 yo)
11.25yrs
Tenure
US$28,107,486
Compensation
Mr. Michael W. Lamach, also known as Mike, serves as the Chief Executive Officer of Trane Technologies plc (formerly known as Ingersoll-Rand Plc) since February 4, 2010 and also serves as its Chairman sinc...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD28.11M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TT's management team is seasoned and experienced (6.3 years average tenure).
Board Members
Experienced Board: TT's board of directors are seasoned and experienced ( 11.3 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$43.927b
- Shares outstanding: 239.15m
- Website: https://www.tranetechnologies.com
Number of Employees
Location
- Trane Technologies plc
- 170/175 Lakeview Drive
- Airside Business Park
- Swords
- Co. Dublin
- Ireland
Listings
Biography
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 ai...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/09 22:49 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2021/03/31 |
| 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.