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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#605
Positioning
Market Dominance
Manufacturing
Measuring And Control Equipment
$93.9B
Dave S. Regnery
Trane Technologies plc engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration. The company also provides building management, control, ductless, geothermal, package heating and cooling, temporary heating, cooling, and unitary systems. It markets its products under the Trane and Thermo King brands through sales offices, distributors, and dealers.
Headcount
39.0K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = TT ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$TT Trane Technologies plc | 61 | 73 | 65 | 53 | 33.2x | 25.9x | 36.2% | 14.5% | 36.6% | 19.2% | 14.3% | 8.2% | 0.9% | 54.0x | $93.9B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Trane Technologies plc (TT) receives a "Hold" rating with a composite score of 60.9/100. It ranks #605 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Dave S. Regnery
Chief Executive Officer
Labor Force
39,000
73
37
82
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for TT
HQ Base
CO. DUBLIN, North Carolina
In-line with peers — no strong momentum signal
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for TT.
View All RatingsNet income exceeding cash flow (Accrual bloat detected)
Material decline in asset turnover efficiency detected
ROE proxy 36.2% (sector -2.5%)
GM 37% vs sector 43%, OM 19% vs sector 1%
Capital turnover N/A, R&D intensity 1.6%
Rev growth 8%, 10yr history
Interest coverage 17.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns Trane Technologies plc a Hold rating, with a composite score of 60.9/100 and 3 out of 5 stars. Ranked #605 of 7,333 stocks, TT presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
TT earns a quality score of 73/100, indicating above-average business quality. The company reports a return on equity of 36.2% (sector avg: -2.5%), gross margins of 36.6% (sector avg: 42.5%), net margins of 14.3% (sector avg: -0.2%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
TT's value score of 65/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 33.17x, an EV/EBITDA of 25.88x, a P/B ratio of 12.02x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Trane Technologies plc's investment score of 37/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 8.2% vs. a sector average of 5.9% and a return on assets of 14.5% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
TT demonstrates moderate momentum with a score of 53/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 8.2% year-over-year, while a beta of 0.89 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
TT shows good financial stability with a score of 82/100. Key stability metrics include a beta of 0.89 and a debt-to-equity ratio of 54.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 50/100 for TT suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 54.00x). With a $93.9B market cap (large-cap), Trane Technologies plc may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
TT offers a modest dividend yield of 0.9%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
Trane Technologies plc is a large-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #605 of 7,333 overall (92nd percentile). Key comparisons include ROE of 36.2% exceeding the -2.5% sector median and operating margins of 19.2% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While TT currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Stability (82) vs Investment (37) — closing this gap could shift the rating.
EV/EBITDA 126% ABOVE SECTOR MEDIAN
ROE 1561% BELOW SECTOR MEDIAN
Gross Margin 14% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Trane Technologies plc (TT) as a Hold with a composite score of 60.9/100 at a current price of $463.60. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in stability (82th percentile) and quality (73th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (37th percentile) and momentum (53th percentile) tempers our overall conviction. We assign a Narrow Moat rating (63/100), Medium uncertainty, and Standard capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
Trane Technologies plc holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 60.9/100 places it at rank #605 in our full 7,333-stock universe. With a $93.9B market capitalization, Trane Technologies plc operates at meaningful scale within the Manufacturing sector, providing competitive advantages in distribution, procurement, and customer reach.
Revenue is growing at 8%, though momentum at the 53th percentile suggests the market has not yet fully recognized this trajectory. This potential disconnect between fundamental improvement and market recognition could represent an opportunity for patient investors if the growth trend persists.
The margin cascade tells an important story: gross margins of 37% (-5.9pp vs sector) narrow to operating margins of 19% (+17.9pp vs sector) and net margins of 14.3%, yielding a gross-to-net conversion rate of 39%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $463.60, Trane Technologies plc is trading near fair value based on current fundamentals. Our value factor score of 65/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 33.2x (a 49% premium to the sector median of 22.3x), EV/EBITDA of 25.9x (at a premium), P/B of 12.0x, P/S of 4.8x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Returns on equity of 36.2% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
A value factor score of 65/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
Return on assets of 14.5% indicates efficient deployment of the full asset base, not just equity capital.
Even high-quality stocks face risks from valuation compression, competitive disruption, or macro shocks that are difficult to quantify in advance.
We assign a Medium uncertainty rating to Trane Technologies plc. The stock presents a balanced risk profile: risk factors are within normal ranges. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
We identify no major risk factors at this time. The company's stability factor sits at the 82th percentile with quality at the 73th percentile, both of which support our low-risk assessment. The absence of material leverage, profitability, or volatility concerns reduces the likelihood of a permanent capital loss scenario.
Key risk mitigants include: above-average stability (82th percentile) suggests predictable business dynamics; large-cap scale ($93.9B) provides resilience. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate Trane Technologies plc's capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 36.2%, and the balance sheet is managed within acceptable parameters (D/E: 54%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; Trane Technologies plc falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. The 0.87% dividend yield provides some income return, but the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, Trane Technologies plc receives a Hold rating with a composite score of 60.9/100 (rank #605 of 7,333). Our quantitative framework assigns a Narrow Moat (63/100, trend: stable), Medium uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 62/100.
Our analysis supports a neutral stance on Trane Technologies plc. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign Trane Technologies plc a Narrow Moat rating with a composite moat score of 63/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that Trane Technologies plc can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being economic value creation at 18.1/20.
The strongest moat sources are economic value creation (18.1/20) and financial resilience (18.1/20). ROE proxy 36.2% (sector -2.5%). Interest coverage 17.5x. These pillars form the core of Trane Technologies plc's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0.6/20) and growth durability (11.9/20). Capital turnover N/A, R&D intensity 1.6%. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect Trane Technologies plc's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 37% providing a solid profitability foundation, operating margins of 19% reflecting effective cost management, moderate revenue growth of 8%. The margin cascade from 37% gross to 19% operating to 14.3% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 73th percentile.
The margin profile shows gross margins of 37%, operating margins of 19%, net margins of 14.3%. Return metrics include ROE of 36.2% and ROA of 14.5%. Relative to the Manufacturing sector, gross margins are 5.9 percentage points below the sector median of 43%, and ROE of 36.2% compares to a sector median of -2.5%.
The balance sheet reflects moderate leverage with D/E of 54%, a dividend yield of 0.87%, revenue growth of 8%. The sector median D/E is 0%, putting Trane Technologies plc at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
About Trane Technologies plc Trane Technologies plc, together with its subsidiaries, engages in the designing, manufacturing, selling, and servicing of solutions for heating, ventilation, air conditioning, and transport refrigeration. 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
Trane Technologies (TT) is back in focus after quarterly earnings exceeded expectations, supported by robust commercial HVAC demand, a 22% jump in organic bookings and a record backlog that sharpens attention on its cash flow profile. See our latest analysis for Trane Technologies. Despite a 1 day share price decline of 1.54% and a 7 day share price return of 1.15%, Trane’s 30 day share price return of 19.09% and 1 year total shareholder return of 33.86% suggest momentum building on the back...
Trane Technologies (NYSE:TT) has completed its acquisition of Stellar Energy Americas. The deal adds data center focused thermal management and modular cooling solutions to Trane’s portfolio. The transaction is positioned to support efficient and scalable cooling for data centers across the Americas. For investors looking at NYSE:TT, this move adds another piece to Trane’s core focus on heating, cooling, and energy efficiency solutions. Data centers require reliable thermal management to...
Johnson Controls stock fell up to 10% after Nvidia CEO Jensen Huang announced that the company's next-generation Vera Rubin AI infrastructure will use warm-water cooling instead of traditional air cooling. This shift threatens demand for Johnson Controls' and Trane's data center cooling solutions, which represent a mid-teens percentage of their revenue but serve as a key growth engine.