QualityDipStocks / Industrials · Auto parts
Trane Technologies TT
On dip watch: 19% below its 52-week high.
A quality company trading near our fair value estimate.
- Fair value est.
- $405.65−1%
- Market Value
- forming
- Off 52-wk high
- −19%
- Risk vs market
- Above marketbeta 1.18
5 bullish · 2 bearish See why
Key levels
Every level vs today’s $410.00
- 52-wk lowlowest close, 1 year$376.43−8.2%
- Fair value est.base case$405.65−1.1%
- PriceFri Oct 30 close$410.00you are here
- 52-wk highhighest close, 1 year$503.46+22.8%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 10.1% ±2 points. Bear = 10.5% and 8.1%; bull = 8.5% and 12.1% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, TT’s free cash flow would need to grow about 10% a year for five years; our estimate uses 10%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much TT moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 2.3× the S&P 500’s.
- Beta vs S&P 500
- 1.18
- Volatility
- 30% vs 13% SPY
- Correlation SPY
- 0.51
- Correlation QQQ
- 0.48
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ProfitabilityReturn on equity of 36% over the last 12 months, up 5 points in two years.
Cash returnsFree cash flow grew 51% over the last 12 months vs the 12 months before.
ProfitabilityOperating margin widened to 18.6% in FY2025 from 16.4% in FY2023 (SEC filings).
GrowthSales grew 10% to $23.2B over the last 12 months vs the 12 months before (SEC filings).
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 2 of 5
ValuationPrice / book of 10.0×, above the 4.4× median for the 134 Industrials companies we cover.
ValuationP/E of 28.8×, above the 27.5× median for the 130 Industrials companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on Trane Technologies in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Industrials
All fundamentals
P/E 28.8 · FCF yield 4.2% · ROE 36%
Valuation
- P/E
- 28.8×3-yr-end avg 30.2× · Industrials median 27.5×
- Price / FCF
- 23.8×
- FCF yield
- 4.2%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 3.91×
- Price / book
- 9.96×
- Market cap
- $90.8Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $23.2B
- Sales growth, 12 months
- +10.3%vs the 12 months before
- Sales growth, 3 yrs
- +10.1%/yrfrom FY2022
- Diluted EPS, 12 months
- $14.16
- EPS growth, last FY
- +15.5%
- Net income, 12 months
- $3.2B
- Net income growth
- +7%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 17.9%
- Net margin
- 13.6%
- FCF margin
- 16.4%
- Return on equity
- 36%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- n/anot reported in its SEC filings
- Total debt
- $4.2B
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- 0.46×
- Interest coverage
- 19.2×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $3.8B
- FCF growth, 12 months
- +51%
- Dividend yield
- 0.99%$902M paid
- Payout ratio
- 29%
- Buybacks, 12 months
- $1.6B1.7% of market cap
- Share count, 1 year
- −1.3%diluted shares vs a year ago
- Stock-based comp
- $98M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Trane Technologies’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $405.65 · FCF value $412.59
Assumes 10.1% growth for 5 years (revenue grew 10.1% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $17.24 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. We watch it daily for our three reversal signal rules while it sits in a dip.
Momentum & 52-week range
RSI 31 · 5 days −7.8%
The business
FCF $3.8B · Sales +18%
- Free cash flow, 12 months$3.8B
- Free-cash-flow yield4.0%
- Free-cash-flow margin16%
- Gross margin35%
- Operating margin18%
- Return on invested capital25%
- Return on equity36%
- Sales growth (latest quarter vs year-ago quarter)+18%
- Net debt / EBITDA0.7×
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when TT fires a reversal signal
One text when a published rule fires on TT or any of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.