Trane Technologies plc - Class A
Exchange: NYSESector: Basic MaterialsIndustry: Building Products & Equipment
Ingersoll Rand advances the quality of life by creating comfortable, sustainable and efficient environments. Our people and our family of brands — including Club Car ®, Ingersoll Rand ®, Thermo King ® and Trane ® — work together to enhance the quality and comfort of air in homes and buildings; transport and protect food and perishables; and increase industrial productivity and efficiency. We are a global business committed to a world of sustainable progress and enduring results.
Did you know?
Capital expenditures decreased by 1% from FY24 to FY25.
Current Price
$486.50
+0.00%GoodMoat Value
$381.49
21.6% overvaluedProfile
Valuation (TTM)
Market Cap$107.68B
P/E37.15
EV$97.08B
P/B12.55
Shares Out221.33M
P/Sales4.98
Revenue$21.60B
EV/EBITDA26.43
Trane Technologies plc - Class A (TT) Stock Analysis
GoodMoat Analysis
Trane Technologies appears to be a high-quality business with a strong competitive position, evidenced by an excellent 34.0% ROE. However, its current price of $434 is above the GoodMoat target of $381.49, suggesting a valuation that requires caution for a value investor.
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Trane Technologies is a leader in the building products and equipment sector, providing energy-efficient heating, ventilation, and air conditioning (HVAC) systems and services. Applying the GoodMoat framework, the company likely possesses a durable moat. While a full 14-point analysis isn't possible with the provided data, key indicators point to several moat sources, including potential brand strength, regulatory barriers from efficiency standards, and high switching costs for complex commercial systems. The business quality is high, with an outstanding Return on Equity of 34.0%, which far exceeds the 15-20% ROIC threshold for quality, and a solid operating margin of 18.3%. The balance sheet is reasonable with a debt-to-equity ratio of 0.54.
For a value investor, the primary concern is valuation. The stock trades at a P/E of 33.0x, which is high for a company with 5.6% YoY revenue growth. The GoodMoat target price of $381.49 implies the stock is trading at a premium. Following the Decision Framework, the business likely passes the Moat & Quality Gate, but the Valuation & Risk Gate is 'with caution.' The current price offers no margin of safety relative to the target, and the P/E multiple appears elevated given the growth rate. This combination of strong business fundamentals and a full valuation makes it a company worth investigating further, but primarily to understand if future growth justifies the premium or to wait for a more attractive entry point.
Analysis based on data as of 2024-05-15.
Market Cap$107.68B
Current Price$486.50
P/E Ratio37.15
Forward P/E—
PEG Ratio-16.72
EPS$12.98
Book Value$38.76
P/B Ratio12.55
TT Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 8.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.9B
Revenue
13.1B
FY19
12.5B
FY20
14.1B
FY21
16.0B
FY22
17.7B
FY23
19.8B
FY24
21.3B
FY25
Net Income
1.4B
FY19
855M
FY20
1.4B
FY21
1.8B
FY22
2.0B
FY23
2.6B
FY24
2.9B
FY25
TT 52-Week Range
$375.50
$492.54
50-Day MA: $448.68200-Day MA: $424.69
Did you know?
Net income compounded at 12.9% annually over 6 years.
Trane Technologies plc - Class A (TT) Financial Summary
Trane Technologies plc - Class A (TT) is a Basic Materials company in the Building Products & Equipment industry, listed on NYSE. The stock currently trades at $486.50 with a market capitalization of $107.68B.
Key valuation metrics include a P/E ratio of 37.15, price-to-book ratio of 12.55, and EPS of $12.98. The company reports a profit margin of 13.4% and return on equity of 33.8%.
TT Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $107.68B |
| P/E Ratio | 37.15 |
| EPS | $12.98 |
| P/B Ratio | 12.55 |
| P/S Ratio | 4.98 |
| EV/EBITDA | 26.43 |
| Dividend Yield | 0.78% |
| Profit Margin | 13.4% |
| Return on Equity | 33.8% |
| Debt/Equity | 0.54 |
TT Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $13.08B | $1.41B |
| FY20 | $12.45B | $854.90M |
| FY21 | $14.14B | $1.42B |
| FY22 | $15.99B | $1.76B |
| FY23 | $17.68B | $2.02B |
| FY24 | $19.84B | $2.57B |
| FY25 | $21.32B | $2.92B |
Trane Technologies plc - Class A (TT) Valuation
Based on GoodMoat's DCF model, Trane Technologies plc - Class A has a fair value estimate of $381.49. At the current price of $486.50, the stock appears 27.5% overvalued relative to our intrinsic value estimate.
TT Quality Indicators
Trane Technologies plc - Class A maintains a profit margin of 13.4% and an operating margin of 18.3%. Return on equity stands at 33.8%. The current ratio is 1.25. Debt-to-equity ratio is 0.54.
About Trane Technologies plc - Class A
Ingersoll Rand advances the quality of life by creating comfortable, sustainable and efficient environments. Our people and our family of brands — including Club Car ®, Ingersoll Rand ®, Thermo King ® and Trane ® — work together to enhance the quality and comfort of air in homes and buildings; transport and protect food and perishables; and increase industrial productivity and efficiency. We are a global business committed to a world of sustainable progress and enduring results.
TT Free Cash Flow
Trane Technologies plc - Class A generated $2.83B in trailing twelve-month free cash flow, representing an FCF yield of 2.63%. This moderate FCF yield indicates reasonable cash generation.
TT Shares Outstanding
Trane Technologies plc - Class A has 0.22 billion shares outstanding at a share price of $486.50, giving it a market capitalization of $107.68B.
TT Recent Insider Trades
Recent insider transactions at Trane Technologies plc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Simmons Donald E. (Group President, Americas) | SELL | 4,593 | $2.30M |
| Elwell Elizabeth A. (VP & Chief Accounting Officer) | SELL | 635 | $268417.68 |
| Regnery David S (Chair and CEO) | SELL | 36,045 | $15.24M |