Trane TechnologiesFRA:2IS -1.45%92 Operating Margin % is 15.62% as of Mar. 2026, which is 15% above its 10-year median of 13.54. GuruFocus rates FRA:2IS with a GF Score™ of 92/100 and a GF Value™ of €369.36 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,767 Construction companies, Trane Technologies ranks better than 88.46% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Trane Technologies Operating Margin % Related Terms
Trane Technologies Operating Margin % Historical Data
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The historical data trend for Trane Technologies's Operating Margin % 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.
FRA:2IS vs JCI, CARR, MAIR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Trane Technologies's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Operating Margin % of 15.62% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Trane Technologies and its competitors. This is 15% above median its historical median of 13.54. Over the past decade, Trane Technologies' Operating Margin % has ranged from 11.73 to 18.61. According to the industry distribution chart, Trane Technologies ranks #204 out of 1767 companies in the Construction industry, placing it in the top 11.5%.
Is Trane Technologies' Operating Margin % too high?
Trane Technologies' current Operating Margin % of 15.62% is 15% above median its 10-year median of 13.54. Over the past 10 years, this metric has ranged from a low of 11.73 to a high of 18.61. The Construction industry median Operating Margin % is 5.89. Trane Technologies' value of 15.62% is 165.2% above this industry median. Based on the distribution chart, Trane Technologies ranks #204 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #204 out of 1767 companies for Operating Margin %. This places Trane Technologies in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Trane Technologies' value of 15.62% is 165.2% above this benchmark. Historically, Trane Technologies' own Operating Margin % has ranged from 11.73 to 18.61 over the past decade. While the company's 10-year median is 13.54 vs. the industry median of 5.89, 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 Operating Margin % for a Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Operating Margin % of 15.62% is 165.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Trane Technologies and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Operating Margin % is 15.62%, which is 15% above median its own 10-year median of 13.54. 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 €369.36, compared to a current price of €421.30 — trading 14.1% above its estimated fair value. The current Operating Margin % is 15.62%, which is 15% above median its 10-year median of 13.54 and 165.2% above the Construction industry median of 5.89. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current Operating Margin % is 15.62% 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 €421.30 is trading 14.1% above its estimated GF Value™ of €369.36.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2IS:
Operating Margin %: 15.62% (15% above median its 10-year median of 13.54)
GF Value™: €369.36 vs. price of €421.30 (14.1% above fair value)
Industry Position: 165.2% above the Construction median (#204 of 1767)
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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