Trane TechnologiesFRA:2IS -1.45%92 ROE % is 27.40% as of Mar. 2026, which is 19% above its 10-year median of 23.09. 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 1,743 Construction companies, Trane Technologies ranks better than 93.86% on this metric.
The historical rank and industry rank for Trane Technologies's ROE % or its related term are showing as below:
FRA:2IS'
s ROE % Range Over the Past 10 Years
Min: 12.5 Med: 23.09 Max: 36.4
Current: 35.5
During the past 13 years, Trane Technologies's highest ROE % was 36.40%. The lowest was 12.50%. And the median was 23.09%.
FRA:2IS's ROE % is ranked better than 93.86% of 1743
companies
in the Construction industry
Industry Median: 6.71
vs FRA:2IS: 35.50
Trane Technologies (FRA:2IS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Trane Technologies ROE % Related Terms
Trane Technologies ROE % Historical Data
* Premium members only.
The historical data trend for Trane Technologies's ROE % 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.
For the Building Products & Equipment subindustry, Trane Technologies's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's ROE % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Trane Technologies (FRA:2IS) has a ROE % of 27.40% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Trane Technologies and its competitors. This is 19% above median its historical median of 23.09. Over the past decade, Trane Technologies' ROE % has ranged from 12.50 to 36.40. According to the industry distribution chart, Trane Technologies ranks #107 out of 1743 companies in the Construction industry, placing it in the top 6.1%.
Is Trane Technologies' ROE % too high?
Trane Technologies' current ROE % of 27.40% is 19% above median its 10-year median of 23.09. Over the past 10 years, this metric has ranged from a low of 12.50 to a high of 36.40. The Construction industry median ROE % is 6.71. Trane Technologies' value of 27.40% is 308.3% above this industry median. Based on the distribution chart, Trane Technologies ranks #107 out of 1743 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' ROE % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #107 out of 1743 companies for ROE %. This places Trane Technologies in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.71. Trane Technologies' value of 27.40% is 308.3% above this benchmark. Historically, Trane Technologies' own ROE % has ranged from 12.50 to 36.40 over the past decade. While the company's 10-year median is 23.09 vs. the industry median of 6.71, 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 ROE % for a Construction company?
The median ROE % among Construction companies is 6.71, based on 1,743 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current ROE % of 27.40% is 308.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Trane Technologies and its competitors. For the Construction industry, the median ROE % is 6.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current ROE % is 27.40%, which is 19% above median its own 10-year median of 23.09. 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 ROE % is 27.40%, which is 19% above median its 10-year median of 23.09 and 308.3% above the Construction industry median of 6.71. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current ROE % is 27.40% 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:
ROE %: 27.40% (19% above median its 10-year median of 23.09)
GF Value™: €369.36 vs. price of €421.30 (14.1% above fair value)
Industry Position: 308.3% above the Construction median (#107 of 1743)
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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