INGERSOLL-RAND INC (IR)
US45687V1061 - Common Stock
Taking everything into account, IR scores 6 out of 10 in our fundamental rating. IR was compared to 131 industry peers in the Machinery industry. IR has an excellent profitability rating, but there are some minor concerns on its financial health. IR is valued quite expensive, but it does show an excellent growth. This makes IR very considerable for growth investing!
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.
Of the past 5 years IR 4 years were profitable.
IR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of IR (4.61%) is comparable to the rest of the industry.
IR's Return On Equity of 8.17% is in line compared to the rest of the industry. IR outperforms 53.54% of its industry peers.
IR's Return On Invested Capital of 6.79% is in line compared to the rest of the industry. IR outperforms 52.76% of its industry peers.
IR had an Average Return On Invested Capital over the past 3 years of 5.30%. This is significantly below the industry average of 10.97%.
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 81.89% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a better Operating Margin (19.90%) than 88.19% of its industry peers.
IR's Operating Margin has been stable in the last couple of years.
The Gross Margin of IR (43.81%) is better than 83.46% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IR is destroying value.
IR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for IR has been increased compared to 5 years ago.
The debt/assets ratio for IR has been reduced compared to a year ago.
2.2 Solvency
IR has an Altman-Z score of 4.13. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.13, IR is in the better half of the industry, outperforming 66.93% of the companies in the same industry.
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 better Debt to FCF ratio (3.66) than 60.63% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
IR has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: IR outperforms 50.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 4.13 |
ROIC/WACC0.75
WACC9%
2.3 Liquidity
A Current Ratio of 2.36 indicates that IR has no problem at all paying its short term obligations.
The Current ratio of IR (2.36) is comparable to the rest of the industry.
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 Quick ratio of 1.71. This is in the better half of the industry: IR outperforms 70.87% 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.
The Revenue has been growing slightly by 7.18% in the past year.
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
IR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.77% yearly.
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.
EPS Next Y15.18%
EPS Next 2Y10.97%
EPS Next 3Y10.66%
EPS Next 5Y12.77%
Revenue Next Year6.27%
Revenue Next 2Y6.34%
Revenue Next 3Y6.13%
Revenue Next 5Y8.51%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
IR is valuated quite expensively with a Price/Earnings ratio of 31.15.
Compared to the rest of the industry, the Price/Earnings ratio of IR indicates a slightly more expensive valuation: IR is more expensive than 64.57% of the companies listed in the same industry.
IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.68.
Based on the Price/Forward Earnings ratio of 28.29, the valuation of IR can be described as expensive.
IR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.58. IR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.15 | ||
| Fwd PE | 28.29 |
4.2 Price Multiples
IR's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. IR is more expensive than 66.93% 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 | 31.76 | ||
| EV/EBITDA | 23.66 |
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)2.05
PEG (5Y)3.28
EPS Next 2Y10.97%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, IR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.54, IR has a dividend in line with its industry peers.
With a Dividend Yield of 0.08, IR pays less dividend than the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
IR has been paying a dividend for at least 10 years, so it has 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
3.85% of the earnings are spent on dividend by IR. This is a low number and sustainable payout ratio.
DP3.85%
EPS Next 2Y10.97%
EPS Next 3Y10.66%
INGERSOLL-RAND INC
NYSE:IR (11/20/2024, 8:04:00 PM)
Premarket: 102.9 -0.21 (-0.2%)103.11
+0.73 (+0.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap41.55B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.15 | ||
| Fwd PE | 28.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.05
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.9% | ||
| PM (TTM) | 11.72% | ||
| GM | 43.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.38%
EPS 3Y25.15%
EPS 5Y
EPS Q2Q%
EPS Next Y15.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y