StockCV
Trane Technologies plc logo

Trane Technologies plc

Auto Controls For Regulating Residential & Comml Environments

$476.98
+1.50%
Market cap $105B

Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The company generates approximately 70% of sales from equipment and 30% from parts and services.

It is a $105B technology company. Revenue grew 7.0% over the last year, it keeps 13¢ of every dollar of sales as profit, and its net debt equals ~0.8 years of free cash flow. It trades at 35.6× earnings — in the most expensive third of its own history.

Location
Co. Dublin, L2
Employees
44 000
Sector
Technology

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation44Growth90Profitability90Health74Quality95Moat81

Strong growth, profitability, quality and moat; Valuation lags behind.

Valuation44
  • P/E vs own history82th pct · 0/25
  • FCF yield3.4% · 12/25
  • P/S4.7x · 20/25
  • EV/EBITDA24.7x · 12/25
Growth90
  • Revenue CAGR10.8% · 20/25
  • Net income CAGR19.7% · 20/25
  • EPS CAGR ~5Y27.8% · 25/25
  • Fwd implied growth37.4% · 25/25
Profitability90
  • ROIC27.1% · 25/25
  • ROE34.6% · 25/25
  • Net margin13.3% · 20/25
  • Operating margin17.9% · 20/25
Health74
  • Altman Z5.57 · 25/25
  • Current ratio1.07 · 12/25
  • Interest coverage16.8x · 25/25
  • Net cash / debtD/A 13% · 12/25
Quality95
  • Piotroski F8/9 · 25/25
  • Beneish M-2.45 · 20/25
  • FCF conversion120% · 25/25
  • Margin stabilityσ 3.6% · 25/25
Moat81
  • ROIC >12% years10/10 yrs · 25/25
  • Median gross margin31.0% · 13/25
  • FCF-positive years10/10 yrs · 25/25
  • Worst-year net marginworst 6.9% · 18/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. FY2025Financial
    Best year on record
    $2.92B net income
  2. 2020Milestone
    Ingersoll Rand spun off its non-refrigeration businesses and was rebranded as Trane Technologies
  3. 2017Milestone
    The Asthma and Allergy Foundation of America and Allergy Standards Limited announced that the…
  4. FY2016Financial
    Profitable every year on record
    10 consecutive profitable years in our data
  5. FY2016Financial
    Revenue already above $10B
    $13.5B in first reported year
  6. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  7. Dec 17, 2007Acquisition
    Trane announced it had agreed to be acquired by Ireland-based Ingersoll Rand in a cash and…
  8. Nov 28, 2007Milestone
    American Standard then renamed itself Trane Inc. effective November 28, 2007
  9. 1984Acquisition
    Trane was acquired by the American Standard Companies
  10. 1982Acquisition
    Trane purchased General Electric's Central Air Conditioning Division
  11. 1931Product
    Trane's first air conditioning unit was developed in 1931

Achievements

Verifiable track record, straight from the reported numbers.

#43 largest of 220 Technology companies by market cap
$10 000 invested in 2021 would be worth ~$25 095 today — price return only
$21.3B revenue in FY2025
Revenue up 7.0% year over year
Profitable 10 years in a row
Positive free cash flow 10 years in a row
44 000 employees
ROIC of 27.1%

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • Strong cash conversion — FCF is 16.0% of revenue
  • Could repay net debt from ~0.9 years of free cash flow
  • Interest covered 16.8× by operating earnings
  • High returns on invested capital (ROIC 27.1%)
  • Piotroski F-Score 8/9 — fundamentally strong checklist

Watch-outs

Nothing stands out as a concern in the available data.

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

11 of 11 checks passed
  • Revenue growing+7.0% YoY
  • Profitable$2.95B TTM
  • Profit growing+20.2% YoY
  • Generates cash$3.55B TTM
  • Debt under control~0.8y of cash flow to repay
  • Established company$105B market cap
  • Not printing shares+0.1% shares over ~5y
  • Proven track record10/10 profitable years
  • Financially stableAltman Z 5.6 — safe
  • Pays a dividendyield 0.84%
  • Valuation not extremeP/E 35.6
Peer comparisonTrane Technologies plc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
TT this company$105.0B35.6+7.0%13.3%Solid
NVDA Nvidia Corp$5.5T28.6+83.4%63.7%Mixed
AAPL Apple Inc.$4.9T38.1+14.2%27.6%Strong
GOOGL Alphabet Inc.$4.3T17.6+20.1%54.8%Mixed
MSFT Microsoft Corp$4.0T29.7+17.8%40.3%Strong
SPCX Space Exploration Technologies Corp.$2.1T—+33.2%-34.0%Strained
META Meta Platforms, Inc.$1.8T26.9+27.7%29.8%Mixed

Head-to-head: TT vs NVDA · TT vs AAPL · TT vs GOOGL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 9Buy 10Hold 14

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

Want the live picture — intraday moves, valuation history and full analysis?

Deeper analysis of TT on PreMarketPrice

Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $476.98 · market cap $105B.