INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
NYSE:IR - New York Stock Exchange, Inc. - US45687V1061 - Common Stock
We assign a fundamental rating of 6 out of 10 to IR. IR was compared to 131 industry peers in the Machinery industry. While IR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. IR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year IR was profitable.
In the past year IR had a positive cash flow from operations.
IR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.61%, IR perfoms like the industry average, outperforming 55.12% of the companies in the same industry.
IR has a Return On Equity (8.17%) which is in line with its industry peers.
The Return On Invested Capital of IR (6.79%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for IR is significantly below the industry average of 11.19%.
The 3 year average ROIC (5.30%) for IR is below the current ROIC(6.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.17% | ||
| ROIC | 6.79% |
ROA(3y)4.27%
ROA(5y)3.21%
ROE(3y)6.93%
ROE(5y)5.79%
ROIC(3y)5.3%
ROIC(5y)4.48%
1.3 Margins
The Profit Margin of IR (11.72%) is better than 81.10% of its industry peers.
IR's Profit Margin has improved in the last couple of years.
IR's Operating Margin of 19.90% is amongst the best of the industry. IR outperforms 87.40% of its industry peers.
IR's Operating Margin has been stable in the last couple of years.
IR has a Gross Margin of 43.81%. This is amongst the best in the industry. IR outperforms 80.31% of its industry peers.
IR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.9% | ||
| PM (TTM) | 11.72% | ||
| GM | 43.81% |
OM growth 3Y37.76%
OM growth 5Y1.4%
PM growth 3YN/A
PM growth 5Y2.49%
GM growth 3Y5.83%
GM growth 5Y2.17%
2. Health
2.1 Basic Checks
IR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IR has been reduced compared to 1 year ago.
Compared to 5 years ago, IR has more shares outstanding
The debt/assets ratio for IR has been reduced compared to a year ago.
2.2 Solvency
IR has an Altman-Z score of 3.85. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
IR's Altman-Z score of 3.85 is in line compared to the rest of the industry. IR outperforms 58.27% of its industry peers.
The Debt to FCF ratio of IR is 3.66, which is a good value as it means it would take IR, 3.66 years of fcf income to pay off all of its debts.
IR has a Debt to FCF ratio (3.66) which is in line with its industry peers.
IR has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.66 | ||
| Altman-Z | 3.85 |
ROIC/WACC0.72
WACC9.48%
2.3 Liquidity
IR has a Current Ratio of 2.36. This indicates that IR is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of IR (2.36) is better than 60.63% of its industry peers.
IR has a Quick Ratio of 1.71. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
IR has a better Quick ratio (1.71) than 72.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
IR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.38%, which is quite good.
The Earnings Per Share has been growing by 9.50% on average over the past years. This is quite good.
IR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.18%.
IR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.65% yearly.
EPS 1Y (TTM)17.38%
EPS 3Y25.15%
EPS 5Y9.5%
EPS Q2Q%9.09%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y20.65%
Sales Q2Q%7.02%
3.2 Future
Based on estimates for the next years, IR will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.42% on average per year.
IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.26% yearly.
EPS Next Y15.2%
EPS Next 2Y11.05%
EPS Next 3Y10.75%
EPS Next 5Y11.42%
Revenue Next Year6.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.19%
Revenue Next 5Y7.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.42, which means the current valuation is very expensive for IR.
IR's Price/Earnings ratio is in line with the industry average.
IR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.77, IR can be considered very expensive at the moment.
IR's Price/Forward Earnings ratio is in line with the industry average.
IR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 25.77 |
4.2 Price Multiples
64.57% of the companies in the same industry are cheaper than IR, based on the Enterprise Value to EBITDA ratio.
IR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.98 | ||
| EV/EBITDA | 21.75 |
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)1.87
PEG (5Y)2.99
EPS Next 2Y11.05%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, IR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.65, IR has a dividend in line with its industry peers.
With a Dividend Yield of 0.09, IR pays less dividend than the S&P500 average, which is at 2.28.
| 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.
IR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IR pays out 3.85% of its income as dividend. This is a sustainable payout ratio.
DP3.85%
EPS Next 2Y11.05%
EPS Next 3Y10.75%
INGERSOLL-RAND INC
NYSE:IR (1/21/2025, 8:08:02 PM)
After market: 94.08 0 (0%)94.08
+2.2 (+2.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.1%
Inst Owner Change-0.04%
Ins Owners0.18%
Ins Owner Change-0.61%
Market Cap37.92B
Analysts76.8
Price Target113.16 (20.28%)
Short Float %2.18%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP3.85%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.65%
Min EPS beat(2)0.25%
Max EPS beat(2)3.04%
EPS beat(4)4
Avg EPS beat(4)5.36%
Min EPS beat(4)0.25%
Max EPS beat(4)9.69%
EPS beat(8)8
Avg EPS beat(8)9.11%
EPS beat(12)12
Avg EPS beat(12)7.7%
EPS beat(16)16
Avg EPS beat(16)9.79%
Revenue beat(2)0
Avg Revenue beat(2)-3.13%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)-2.68%
Revenue beat(4)0
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-4.62%
Max Revenue beat(4)-0.58%
Revenue beat(8)4
Avg Revenue beat(8)0.18%
Revenue beat(12)7
Avg Revenue beat(12)0.11%
Revenue beat(16)9
Avg Revenue beat(16)-1.94%
PT rev (1m)0.63%
PT rev (3m)8.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.42 | ||
| Fwd PE | 25.77 | ||
| P/S | 5.3 | ||
| P/FCF | 28.98 | ||
| P/OCF | 26.11 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.75 |
EPS(TTM)3.31
EY3.52%
EPS(NY)3.65
Fwd EY3.88%
FCF(TTM)3.25
FCFY3.45%
OCF(TTM)3.6
OCFY3.83%
SpS17.76
BVpS25.48
TBVpS-5.92
PEG (NY)1.87
PEG (5Y)2.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.17% | ||
| ROCE | 8.67% | ||
| ROIC | 6.79% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 46.42% | ||
| OM | 19.9% | ||
| PM (TTM) | 11.72% | ||
| GM | 43.81% | ||
| FCFM | 18.28% |
ROA(3y)4.27%
ROA(5y)3.21%
ROE(3y)6.93%
ROE(5y)5.79%
ROIC(3y)5.3%
ROIC(5y)4.48%
ROICexc(3y)6.07%
ROICexc(5y)5.13%
ROICexgc(3y)39.03%
ROICexgc(5y)29.9%
ROCE(3y)6.77%
ROCE(5y)5.72%
ROICexcg growth 3Y61.03%
ROICexcg growth 5Y7.63%
ROICexc growth 3Y68.38%
ROICexc growth 5Y-3.69%
OM growth 3Y37.76%
OM growth 5Y1.4%
PM growth 3YN/A
PM growth 5Y2.49%
GM growth 3Y5.83%
GM growth 5Y2.17%
F-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.66 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 30.13% | ||
| Cap/Sales | 2% | ||
| Interest Coverage | 12.45 | ||
| Cash Conversion | 76.41% | ||
| Profit Quality | 156.03% | ||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z | 3.85 |
F-Score6
WACC9.48%
ROIC/WACC0.72
Cap/Depr(3y)20%
Cap/Depr(5y)19.21%
Cap/Sales(3y)1.46%
Cap/Sales(5y)1.46%
Profit Quality(3y)129.33%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.38%
EPS 3Y25.15%
EPS 5Y9.5%
EPS Q2Q%9.09%
EPS Next Y15.2%
EPS Next 2Y11.05%
EPS Next 3Y10.75%
EPS Next 5Y11.42%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y20.65%
Sales Q2Q%7.02%
Revenue Next Year6.27%
Revenue Next 2Y6.31%
Revenue Next 3Y6.19%
Revenue Next 5Y7.26%
EBIT growth 1Y21.24%
EBIT growth 3Y65.39%
EBIT growth 5Y22.34%
EBIT Next Year44.75%
EBIT Next 3Y18.97%
EBIT Next 5Y15.34%
FCF growth 1Y99.22%
FCF growth 3Y13.4%
FCF growth 5Y26.52%
OCF growth 1Y95.99%
OCF growth 3Y14.64%
OCF growth 5Y25.38%