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Trane TechnologiesMIL:1TTH +0.69%69 ROC (Joel Greenblatt) % is 117.76% as of Mar. 2026, which is 9% above its 10-year median of 108.50. GuruFocus rates MIL:1TTH with a GF Score™ of 69/100 and a GF Value™ of €365.53 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,779 Construction companies, Trane Technologies ranks better than 90.73% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Trane Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 117.76%.
The historical rank and industry rank for Trane Technologies's ROC (Joel Greenblatt) % or its related term are showing as below:
MIL:1TTH'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 44.53 Med: 108.5 Max: 158.98
Current: 139.21
During the past 13 years, Trane Technologies's highest ROC (Joel Greenblatt) % was 158.98%. The lowest was 44.53%. And the median was 108.50%.
MIL:1TTH's ROC (Joel Greenblatt) % is ranked better than 90.73% of 1779
companies
in the Construction industry
Industry Median: 19.59
vs MIL:1TTH: 139.21
Trane Technologies's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 18.60% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Trane Technologies ROC (Joel Greenblatt) % Related Terms
Trane Technologies ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Trane Technologies's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Building Products & Equipment subindustry, Trane Technologies's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 117.76% mean?
Trane Technologies (MIL:1TTH) has a ROC (Joel Greenblatt) % of 117.76% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Trane Technologies and its competitors. This is near median its historical median of 108.50. Over the past decade, Trane Technologies' ROC (Joel Greenblatt) % has ranged from 44.53 to 158.98. According to the industry distribution chart, Trane Technologies ranks #165 out of 1779 companies in the Construction industry, placing it in the top 9.3%.
Is Trane Technologies' ROC (Joel Greenblatt) % too high?
Trane Technologies' current ROC (Joel Greenblatt) % of 117.76% is near median its 10-year median of 108.50. Over the past 10 years, this metric has ranged from a low of 44.53 to a high of 158.98. The Construction industry median ROC (Joel Greenblatt) % is 19.59. Trane Technologies' value of 117.76% is 501.1% above this industry median. Based on the distribution chart, Trane Technologies ranks #165 out of 1779 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 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' ROC (Joel Greenblatt) % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #165 out of 1779 companies for ROC (Joel Greenblatt) %. This places Trane Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 19.59. Trane Technologies' value of 117.76% is 501.1% above this benchmark. Historically, Trane Technologies' own ROC (Joel Greenblatt) % has ranged from 44.53 to 158.98 over the past decade. While the company's 10-year median is 108.50 vs. the industry median of 19.59, 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 ROC (Joel Greenblatt) % for a Construction company?
The median ROC (Joel Greenblatt) % among Construction companies is 19.59, based on 1,779 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current ROC (Joel Greenblatt) % of 117.76% is 501.1% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Trane Technologies and its competitors. For the Construction industry, the median ROC (Joel Greenblatt) % is 19.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current ROC (Joel Greenblatt) % is 117.76%, which is near median its own 10-year median of 108.50. 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 Modestly Overvalued. The stock's GF Value™ is €365.53, compared to a current price of €422.10 — trading 15.5% above its estimated fair value. The current ROC (Joel Greenblatt) % is 117.76%, which is near median its 10-year median of 108.50 and 501.1% above the Construction industry median of 19.59. Trane Technologies' overall GF Score™ is 69/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Trane Technologies (MIL:1TTH), the current ROC (Joel Greenblatt) % is 117.76% 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 15.5% above its estimated GF Value™ of €365.53.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for MIL:1TTH:
ROC (Joel Greenblatt) %: 117.76% (near median its 10-year median of 108.50)
GF Value™: €365.53 vs. price of €422.10 (15.5% above fair value)
Industry Position: 501.1% above the Construction median (#165 of 1779)
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.
69GF Score
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