Trane Technologies plc (TT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics and a price that offers a margin of safety. Trane Technologies makes and services heating, ventilation, air conditioning, and refrigeration equipment. The filed record shows revenue of $17.7B in fiscal year 2023, the year ended 2023-12-31, $19.8B in fiscal year 2024, the year ended 2024-12-31, and $21.3B in fiscal year 2025, the year ended 2025-12-31. Net income rose from $2.0B to $2.6B to $2.9B over those same periods. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.4B, net income $925.7M, and diluted EPS $4.16. That is a real, profitable enterprise. FairStock calculations show ROE of 36.64%, a Piotroski F-score of 8/9, an Altman Z-score of 5.21, and trailing free cash flow of $3.5B. The Lynch category is FAST GROWER, based on profit growth of 27.8% a year over five years and revenue growth of 11.4%. However, price matters. At the 2026-10-13 close of $478.01, FairStock calculates P/E of 35.59, P/B of 12.21, PEG of 6.12, EV/EBITDA of 24.98, FCF yield of 3.4%, and a Graham Number of $108.57. The margin of safety versus that Graham Number is -340.28%. That is not a bargain; it is a premium price for a good business. Bulls can point to strong returns and cash generation. Bears can say the market already expects much, especially with recent profit growth slower than the five-year record. I prefer wonderful businesses, but I also insist on a sensible price. Here, the business looks strong; the price looks full.

In plain English: Trane Technologies makes and services heating, cooling, and refrigeration equipment for buildings and transport. The business looks strong: sales, profits, and cash generation have been rising, and its balance sheet appears solid. But the stock price looks expensive compared with the company's current earnings and cash flow, so there is little cushion if growth slows.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer