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Trane TechnologiesMIL:1TTH 71 Return-on-Tangible-Asset is 19.63% as of Mar. 2026, which is 13% above its 10-year median of 17.42. GuruFocus rates MIL:1TTH with a GF Score™ of 71/100 and a GF Value™ of €399.11 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,783 Construction companies, Trane Technologies ranks better than 98.32% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Trane Technologies's annualizedNet Income for the quarter that ended in Mar. 2026 was €2,022 Mil. Trane Technologies's average total tangible assets for the quarter that ended in Mar. 2026 was €10,299 Mil. Therefore, Trane Technologies's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 19.63%.
The historical rank and industry rank for Trane Technologies's Return-on-Tangible-Asset or its related term are showing as below:
MIL:1TTH'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.93 Med: 17.42 Max: 26.02
Current: 25.3
During the past 13 years, Trane Technologies's highest Return-on-Tangible-Asset was 26.02%. The lowest was 7.93%. And the median was 17.42%.
MIL:1TTH's Return-on-Tangible-Asset is ranked better than 98.32% of 1783
companies
in the Construction industry
Industry Median: 3.05
vs MIL:1TTH: 25.30
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Trane Technologies Return-on-Tangible-Asset Related Terms
Trane Technologies Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Trane Technologies's Return-on-Tangible-Asset 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.
MIL:1TTH vs JCI, CARR, LII: Return-on-Tangible-Asset Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 19.63% mean?
Trane Technologies (MIL:1TTH) has a Return-on-Tangible-Asset of 19.63% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Trane Technologies and its competitors. This is 13% above median its historical median of 17.42. Over the past decade, Trane Technologies' Return-on-Tangible-Asset has ranged from 7.93 to 26.02. According to the industry distribution chart, Trane Technologies ranks #30 out of 1783 companies in the Construction industry, placing it in the top 1.7%.
Is Trane Technologies' Return-on-Tangible-Asset too high?
Trane Technologies' current Return-on-Tangible-Asset of 19.63% is 13% above median its 10-year median of 17.42. Over the past 10 years, this metric has ranged from a low of 7.93 to a high of 26.02. The Construction industry median Return-on-Tangible-Asset is 3.05. Trane Technologies' value of 19.63% is 543.6% above this industry median. Based on the distribution chart, Trane Technologies ranks #30 out of 1783 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 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Return-on-Tangible-Asset compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #30 out of 1783 companies for Return-on-Tangible-Asset. This places Trane Technologies in the top 2% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.05. Trane Technologies' value of 19.63% is 543.6% above this benchmark. Historically, Trane Technologies' own Return-on-Tangible-Asset has ranged from 7.93 to 26.02 over the past decade. While the company's 10-year median is 17.42 vs. the industry median of 3.05, 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 Return-on-Tangible-Asset for a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.05, based on 1,783 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current Return-on-Tangible-Asset of 19.63% is 543.6% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Trane Technologies and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current Return-on-Tangible-Asset is 19.63%, which is 13% above median its own 10-year median of 17.42. 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 (MIL:1TTH) is currently considered Fairly Valued. The stock's GF Value™ is €399.11, compared to a current price of €422.10 — trading 5.8% above its estimated fair value. The current Return-on-Tangible-Asset is 19.63%, which is 13% above median its 10-year median of 17.42 and 543.6% above the Construction industry median of 3.05. Trane Technologies' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Trane Technologies (MIL:1TTH), the current Return-on-Tangible-Asset is 19.63% 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 (MIL:1TTH) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of €422.10 is trading 5.8% above its estimated GF Value™ of €399.11.
GuruFocus considers Trane Technologies to be Fairly Valued.
Key valuation signals for MIL:1TTH:
Return-on-Tangible-Asset: 19.63% (13% above median its 10-year median of 17.42)
GF Value™: €399.11 vs. price of €422.10 (5.8% above fair value)
Industry Position: 543.6% above the Construction median (#30 of 1783)
No single metric tells the full story. See the MIL:1TTH 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.
71GF Score
Get the complete analysis for MIL:1TTH
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