Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 132 industry peers in the Machinery industry. While IR has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, IR is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

IR had positive earnings in the past year.
IR had a positive operating cash flow in the past year.
IR had positive earnings in 4 of the past 5 years.
In the past 5 years IR always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of 2.97%, IR perfoms like the industry average, outperforming 46.21% of the companies in the same industry.
IR has a Return On Equity (5.34%) which is in line with its industry peers.
IR's Return On Invested Capital of 6.95% is in line compared to the rest of the industry. IR outperforms 53.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.20%.
The 3 year average ROIC (6.33%) for IR is below the current ROIC(6.95%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	2.97%
ROE	5.34%
ROIC	6.95%

ROA(3y)4.58%

ROA(5y)3.45%

ROE(3y)7.59%

ROE(5y)5.73%

ROIC(3y)6.33%

ROIC(5y)4.79%

1.3 Margins

Looking at the Profit Margin, with a value of 7.25%, IR is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of IR has grown nicely.
Looking at the Operating Margin, with a value of 19.75%, IR belongs to the top of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Operating Margin of IR has grown nicely.
With an excellent Gross Margin value of 43.72%, IR belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
IR's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	19.75%
PM (TTM)	7.25%
GM	43.72%

OM growth 3Y18.5%

OM growth 5Y9.27%

PM growth 3Y2.02%

PM growth 5Y8.01%

GM growth 3Y4.32%

GM growth 5Y2.58%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IR is destroying value.
The number of shares outstanding for IR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, IR has more shares outstanding
IR has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.65 indicates that IR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.65, IR is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
The Debt to FCF ratio of IR is 3.83, which is a good value as it means it would take IR, 3.83 years of fcf income to pay off all of its debts.
IR has a better Debt to FCF ratio (3.83) than 60.61% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
The Debt to Equity ratio of IR (0.47) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	3.83
Altman-Z	3.65

ROIC/WACC0.73

WACC9.54%

2.3 Liquidity

IR has a Current Ratio of 2.16. This indicates that IR is financially healthy and has no problem in meeting its short term obligations.
IR's Current ratio of 2.16 is in line compared to the rest of the industry. IR outperforms 57.58% of its industry peers.
A Quick Ratio of 1.51 indicates that IR should not have too much problems paying its short term obligations.
IR has a better Quick ratio (1.51) than 65.15% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.16
Quick Ratio	1.51

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

IR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.72%.
Measured over the past years, IR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.65% on average per year.
The Revenue has been growing slightly by 4.20% in the past year.
The Revenue has been growing by 29.10% on average over the past years. This is a very strong growth!

EPS 1Y (TTM)-2.72%

EPS 3Y15.06%

EPS 5Y15.65%

EPS Q2Q%2.38%

Revenue 1Y (TTM)4.2%

Revenue growth 3Y11.98%

Revenue growth 5Y29.1%

Sales Q2Q%5.05%

3.2 Future

The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.

EPS Next Y2.85%

EPS Next 2Y5.6%

EPS Next 3Y7.1%

EPS Next 5Y10.57%

Revenue Next Year4.78%

Revenue Next 2Y4.67%

Revenue Next 3Y4.86%

Revenue Next 5Y6.58%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 26.74, the valuation of IR can be described as expensive.
IR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.30, IR is valued at the same level.
With a Price/Forward Earnings ratio of 23.47, IR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IR is on the same level as its industry peers.
IR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	26.74
Fwd PE	23.47

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IR is valued a bit more expensive than 60.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IR is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	27.22
EV/EBITDA	19.74

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IR does not grow enough to justify the current Price/Earnings ratio.
IR has a very decent profitability rating, which may justify a higher PE ratio.

PEG (NY)9.39

PEG (5Y)1.71

EPS Next 2Y5.6%

EPS Next 3Y7.1%

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5. Dividend

5.1 Amount

With a yearly dividend of 0.09%, IR is not a good candidate for dividend investing.
IR's Dividend Yield is comparable with the industry average which is at 1.02.
Compared to an average S&P500 Dividend Yield of 1.83, IR's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	0.09%

5.2 History

IR has paid a dividend for at least 10 years, which is a reliable track record.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

IR pays out 5.93% of its income as dividend. This is a sustainable payout ratio.

DP5.93%

EPS Next 2Y5.6%

EPS Next 3Y7.1%

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INGERSOLL-RAND INC / IR FAQ

What is the fundamental rating for IR stock?

ChartMill assigns a fundamental rating of 5 / 10 to IR.

Can you provide the valuation status for INGERSOLL-RAND INC?

ChartMill assigns a valuation rating of 2 / 10 to INGERSOLL-RAND INC (IR). This can be considered as Overvalued.

How profitable is INGERSOLL-RAND INC (IR) stock?

INGERSOLL-RAND INC (IR) has a profitability rating of 7 / 10.

Can you provide the PE and PB ratios for IR stock?

The Price/Earnings (PE) ratio for INGERSOLL-RAND INC (IR) is 26.74 and the Price/Book (PB) ratio is 3.36.

What is the earnings growth outlook for INGERSOLL-RAND INC?

The Earnings per Share (EPS) of INGERSOLL-RAND INC (IR) is expected to grow by 2.85% in the next year.