NYSE:IR qualifies as a high growth stock and is consolidating.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether INGERSOLL-RAND INC (NYSE:IR) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but INGERSOLL-RAND INC has surfaced on our radar for growth with base formation, warranting further examination.

Deciphering NYSE:IR's Growth Rating

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:IR scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 21.35% over the past year.
• The Earnings Per Share has been growing by 9.50% on average over the past years. This is quite good.
• IR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.99%.
• Measured over the past years, IR shows a very strong growth in Revenue. The Revenue has been growing by 20.65% on average per year.
• The Earnings Per Share is expected to grow by 12.77% on average over the next years. This is quite good.
• Based on estimates for the next years, IR will show a quite strong growth in Revenue. The Revenue will grow by 8.51% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Assessing Health for NYSE:IR

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:IR has received a 6 out of 10:

• An Altman-Z score of 3.65 indicates that IR is not in any danger for bankruptcy at the moment.
• IR has a better Altman-Z score (3.65) than 65.38% of its industry peers.
• The Debt to FCF ratio of IR is 3.65, which is a good value as it means it would take IR, 3.65 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.65, IR is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
• A Debt/Equity ratio of 0.48 indicates that IR is not too dependend on debt financing.
• A Current Ratio of 2.18 indicates that IR has no problem at all paying its short term obligations.
• IR's Quick ratio of 1.52 is fine compared to the rest of the industry. IR outperforms 70.77% of its industry peers.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:IR was assigned a score of 7 for profitability:

• The last Return On Invested Capital (6.68%) for IR is above the 3 year average (5.30%), which is a sign of increasing profitability.
• IR has a Profit Margin of 11.73%. This is in the better half of the industry: IR outperforms 80.00% of its industry peers.
• IR's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 19.48%, IR belongs to the best of the industry, outperforming 86.15% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 43.49%, IR belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
• IR's Gross Margin has improved in the last couple of years.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:IR this score is currently 8:

Although the technical rating is bad, IR does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 86.84, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for IR in the last couple of days, which is a good sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of IR for a complete fundamental analysis.

Our latest full technical report of IR contains the most current technical analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.