Trane TechnologiesFRA:2IS -0.59%92 Interest Coverage is 13.96 as of Mar. 2026, which is 70% above its 10-year median of 8.19. GuruFocus rates FRA:2IS with a GF Score™ of 92/100 and a GF Value™ of €367.72 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,351 Construction companies, Trane Technologies ranks better than 65.73% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Trane Technologies's
Operating Income
for the
three
months ended in Mar. 2026 was €671 Mil. Trane Technologies's Interest Expense for the
three
months ended in Mar. 2026 was €-48 Mil.
Trane Technologies's interest coverage for the quarter that ended in Mar. 2026 was 13.96.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Trane Technologies's Interest Coverage or its related term are showing as below:
FRA:2IS'
s Interest Coverage Range Over the Past 10 Years
Min: 6.16 Med: 8.19 Max: 17.5
Current: 17.44
FRA:2IS's Interest Coverage is ranked better than 65.73% of 1351
companies
in the Construction industry
Industry Median: 7.81
vs FRA:2IS: 17.44
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Trane Technologies Interest Coverage Related Terms
Trane Technologies Interest Coverage Historical Data
* Premium members only.
The historical data trend for Trane Technologies's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:2IS vs JCI, CARR, MAIR: Interest Coverage Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trane Technologies Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Trane Technologies (FRA:2IS) has a Interest Coverage of 13.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Trane Technologies and its competitors. This is 70% above median its historical median of 8.19. Over the past decade, Trane Technologies' Interest Coverage has ranged from 6.16 to 17.50. According to the industry distribution chart, Trane Technologies ranks #463 out of 1351 companies in the Construction industry, placing it in the top 34.3%.
Is Trane Technologies' Interest Coverage too high?
Trane Technologies' current Interest Coverage of 13.96 is 70% above median its 10-year median of 8.19. Over the past 10 years, this metric has ranged from a low of 6.16 to a high of 17.50. The Construction industry median Interest Coverage is 7.81. Trane Technologies' value of 13.96 is 78.7% above this industry median. Based on the distribution chart, Trane Technologies ranks #463 out of 1351 companies in the Construction industry, which is above the industry midpoint. Overall, Trane Technologies has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Interest Coverage compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #463 out of 1351 companies for Interest Coverage. This puts Trane Technologies in the upper half of its industry. The industry median Interest Coverage is 7.81. Trane Technologies' value of 13.96 is 78.7% above this benchmark. Historically, Trane Technologies' own Interest Coverage has ranged from 6.16 to 17.50 over the past decade. While the company's 10-year median is 8.19 vs. the industry median of 7.81, Trane Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Interest Coverage of 13.96 is 78.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Trane Technologies and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Interest Coverage is 13.96, which is 70% above median its own 10-year median of 8.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trane Technologies stock overvalued right now?
Based on GuruFocus' analysis, Trane Technologies (FRA:2IS) is currently considered Modestly Overvalued. The stock's GF Value™ is €367.72, compared to a current price of €422.30 — trading 14.8% above its estimated fair value. The current Interest Coverage is 13.96, which is 70% above median its 10-year median of 8.19 and 78.7% above the Construction industry median of 7.81. Trane Technologies' overall GF Score™ is 92/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current Interest Coverage is 13.96 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trane Technologies (FRA:2IS) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of €422.30 is trading 14.8% above its estimated GF Value™ of €367.72.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2IS:
Interest Coverage: 13.96 (70% above median its 10-year median of 8.19)
GF Value™: €367.72 vs. price of €422.30 (14.8% above fair value)
Industry Position: 78.7% above the Construction median (#463 of 1351)
No single metric tells the full story. See the FRA:2IS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. While the firm is domiciled in Ireland, North America accounts for approximately 80% of its revenue, with 13% from EMEA and 7% Asia-Pacific. The company was formed in 2020 when its former parent, Ingersoll Rand, merged with Gardner Denver in a tax-advantaged reverse Morris trust transaction.
92GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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