Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Trane TechnologiesFRA:2IS +2.06%92 3-Year ROIIC % is 76.62 as of Dec. 2025, which is 58% above its 10-year median of 48.54. GuruFocus rates FRA:2IS with a GF Score™ of 92/100 and a GF Value™ of €366.33 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,682 Construction companies, Trane Technologies ranks better than 91.2% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Trane Technologies's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 76.62%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Trane Technologies's 3-Year ROIIC % or its related term are showing as below:
FRA:2IS's 3-Year ROIIC % is ranked better than 91.2% of 1682
companies
in the Construction industry
Industry Median: 4.675
vs FRA:2IS: 76.62
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Trane Technologies 3-Year ROIIC % Related Terms
Trane Technologies 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Trane Technologies's 3-Year ROIIC % 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, LII: 3-Year ROIIC % Comparison
For the Building Products & Equipment subindustry, Trane Technologies's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Trane Technologies (FRA:2IS) has a 3-Year ROIIC % of 76.62 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Trane Technologies and its competitors. This is 58% above median its historical median of 48.54. According to the industry distribution chart, Trane Technologies ranks #148 out of 1682 companies in the Construction industry, placing it in the top 8.8%.
Is Trane Technologies' 3-Year ROIIC % too high?
Trane Technologies' current 3-Year ROIIC % of 76.62 is 58% above median its 10-year median of 48.54. The Construction industry median 3-Year ROIIC % is 4.68. Trane Technologies' value of 76.62 is 1538.9% above this industry median. Based on the distribution chart, Trane Technologies ranks #148 out of 1682 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' 3-Year ROIIC % compare to JCI and CARR?
According to the Construction industry distribution chart, Trane Technologies ranks #148 out of 1682 companies for 3-Year ROIIC %. This places Trane Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 4.68. Trane Technologies' value of 76.62 is 1538.9% above this benchmark. While the company's 10-year median is 48.54 vs. the industry median of 4.68, 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 3-Year ROIIC % for a Construction company?
The median 3-Year ROIIC % among Construction companies is 4.68, based on 1,682 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Trane Technologies's current 3-Year ROIIC % of 76.62 is 1538.9% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Trane Technologies and its competitors. For the Construction industry, the median 3-Year ROIIC % is 4.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trane Technologies's current 3-Year ROIIC % is 76.62, which is 58% above median its own 10-year median of 48.54. 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 €366.33, compared to a current price of €420.40 — trading 14.8% above its estimated fair value. The current 3-Year ROIIC % is 76.62, which is 58% above median its 10-year median of 48.54 and 1538.9% above the Construction industry median of 4.68. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Trane Technologies (FRA:2IS), the current 3-Year ROIIC % is 76.62 as of Dec. 2025. 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 €420.40 is trading 14.8% above its estimated GF Value™ of €366.33.
GuruFocus considers Trane Technologies to be Modestly Overvalued.
Key valuation signals for FRA:2IS:
3-Year ROIIC %: 76.62 (58% above median its 10-year median of 48.54)
GF Value™: €366.33 vs. price of €420.40 (14.8% above fair value)
Industry Position: 1538.9% above the Construction median (#148 of 1682)
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
Get the complete analysis for FRA:2IS
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:2IS has been successfully added to your 
