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Trane Technologies has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Trane Technologies's Interest Coverage for the quarter that ended in Jun. 2026 was 23.06.
Trane Technologies's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.18.
As of today, Trane Technologies's Altman Z-Score is 6.02.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Trane Technologies has the Financial Strength Rank of 7.
Trane Technologies Financial Strength Related Terms
TT vs JCI, CARR, LII: Financial Strength Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Financial Strength distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Financial Strength 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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Trane Technologies has a Z-score of 6.02, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 6.02 is strong.
* 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 (TT) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Trane Technologies and its competitors. This is 17% above median its historical median of 6.00. Over the past decade, Trane Technologies' Financial Strength has ranged from 6.00 to 7.00.
Is Trane Technologies' Financial Strength too high?
Trane Technologies' current Financial Strength of 7 is 17% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 7.00. Overall, Trane Technologies has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Financial Strength compare to JCI and CARR?
Trane Technologies' Financial Strength of 7 can be compared against companies in the Construction industry. Historically, Trane Technologies' own Financial Strength has ranged from 6.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Construction company?
A good Financial Strength depends on the Construction industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Trane Technologies and its competitors. Trane Technologies's current Financial Strength is 7, which is 17% above median its own 10-year median of 6.00. 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 (TT) is currently considered Fairly Valued. The stock's GF Value™ is $444.24, compared to a current price of $453.43 — trading 2.1% above its estimated fair value. The current Financial Strength is 7, which is 17% above median its 10-year median of 6.00. Trane Technologies' overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Trane Technologies (TT), the current Financial Strength is 7 as of Jun. 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 (TT) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of $453.43 is trading 2.1% above its estimated GF Value™ of $444.24.
GuruFocus considers Trane Technologies to be Fairly Valued.
Key valuation signals for TT:
Financial Strength: 7 (17% above median its 10-year median of 6.00)
GF Value™: $444.24 vs. price of $453.43 (2.1% above fair value)
No single metric tells the full story. See the TT 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.
94GF Score
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