INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
79.25 USD
-0.06 (-0.08%)
Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 130 industry peers in the Machinery industry. IR scores excellent on profitability, but 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
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.
IR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IR has a Return On Assets (2.97%) which is in line with its industry peers.
IR's Return On Equity of 5.34% is in line compared to the rest of the industry. IR outperforms 43.08% of its industry peers.
The Return On Invested Capital of IR (6.95%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.46%.
The last Return On Invested Capital (6.95%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 7.25%, IR is doing good in the industry, outperforming 61.54% 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 88.46% of the companies in the same industry.
IR's Operating Margin has improved in the last couple of years.
IR's Gross Margin of 43.72% is fine compared to the rest of the industry. IR outperforms 80.00% of its industry peers.
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IR is destroying value.
Compared to 1 year ago, IR has about the same amount of shares outstanding.
The number of shares outstanding for IR has been increased compared to 5 years ago.
The debt/assets ratio for IR is higher compared to a year ago.
2.2 Solvency
IR has an Altman-Z score of 3.37. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of IR (3.37) is comparable to the rest of the industry.
IR has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as IR would need 3.83 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.83, IR is doing good in the industry, outperforming 62.31% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
IR has a Debt to Equity ratio (0.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.37 |
ROIC/WACC0.74
WACC9.45%
2.3 Liquidity
A Current Ratio of 2.16 indicates that IR has no problem at all paying its short term obligations.
IR has a Current ratio (2.16) which is in line with its industry peers.
IR has a Quick Ratio of 1.51. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.51, IR is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for IR have decreased by -2.72% in the last year.
IR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.65% yearly.
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
Based on estimates for the next years, IR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.57% on average per year.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y2.95%
EPS Next 2Y5.99%
EPS Next 3Y7.33%
EPS Next 5Y10.57%
Revenue Next Year4.76%
Revenue Next 2Y4.65%
Revenue Next 3Y4.91%
Revenue Next 5Y6.57%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
IR is valuated rather expensively with a Price/Earnings ratio of 24.61.
Compared to the rest of the industry, the Price/Earnings ratio of IR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.34, IR is valued at the same level.
IR is valuated rather expensively with a Price/Forward Earnings ratio of 21.44.
IR's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, IR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IR is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as IR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.06 | ||
| EV/EBITDA | 17.81 |
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)8.34
PEG (5Y)1.57
EPS Next 2Y5.99%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, IR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, IR has a dividend in line with its industry peers.
With a Dividend Yield of 0.10, IR pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
IR has been paying a dividend for at least 10 years, so it has 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 2Y5.99%
EPS Next 3Y7.33%
NYSE:IR (12/9/2025, 1:22:01 PM)
79.25
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.78%
Inst Owner Change6.62%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap31.31B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target89.4 (12.81%)
Short Float %4.47%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP5.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.73%
Min EPS beat(2)-2.93%
Max EPS beat(2)-2.53%
EPS beat(4)0
Avg EPS beat(4)-3.35%
Min EPS beat(4)-4.75%
Max EPS beat(4)-2.53%
EPS beat(8)4
Avg EPS beat(8)1%
EPS beat(12)8
Avg EPS beat(12)4.95%
EPS beat(16)12
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-1.72%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-0.79%
Revenue beat(4)0
Avg Revenue beat(4)-2.55%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.79%
Revenue beat(8)0
Avg Revenue beat(8)-2.71%
Revenue beat(12)4
Avg Revenue beat(12)-0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.56%
PT rev (1m)-3.84%
PT rev (3m)-2.77%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 21.44 | ||
| P/S | 4.2 | ||
| P/FCF | 25.06 | ||
| P/OCF | 22.64 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.81 |
EPS(TTM)3.22
EY4.06%
EPS(NY)3.7
Fwd EY4.66%
FCF(TTM)3.16
FCFY3.99%
OCF(TTM)3.5
OCFY4.42%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)8.34
PEG (5Y)1.57
Graham Number43.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROCE | 9.06% | ||
| ROIC | 6.95% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 48.05% | ||
| OM | 19.75% | ||
| PM (TTM) | 7.25% | ||
| GM | 43.72% | ||
| FCFM | 16.75% |
ROA(3y)4.58%
ROA(5y)3.45%
ROE(3y)7.59%
ROE(5y)5.73%
ROIC(3y)6.33%
ROIC(5y)4.79%
ROICexc(3y)7.12%
ROICexc(5y)5.43%
ROICexgc(3y)46.29%
ROICexgc(5y)35.83%
ROCE(3y)8.25%
ROCE(5y)6.23%
ROICexgc growth 3Y22.68%
ROICexgc growth 5Y21.38%
ROICexc growth 3Y22.68%
ROICexc growth 5Y6.23%
OM growth 3Y18.5%
OM growth 5Y9.27%
PM growth 3Y2.02%
PM growth 5Y8.01%
GM growth 3Y4.32%
GM growth 5Y2.58%
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Debt/EBITDA | 2.44 | ||
| Cap/Depr | 27.3% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 5.47 | ||
| Cash Conversion | 70.49% | ||
| Profit Quality | 231% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.37 |
F-Score5
WACC9.45%
ROIC/WACC0.74
Cap/Depr(3y)25.25%
Cap/Depr(5y)20.22%
Cap/Sales(3y)1.73%
Cap/Sales(5y)1.5%
Profit Quality(3y)146.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.72%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%2.38%
EPS Next Y2.95%
EPS Next 2Y5.99%
EPS Next 3Y7.33%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.76%
Revenue Next 2Y4.65%
Revenue Next 3Y4.91%
Revenue Next 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year14.81%
EBIT Next 3Y9.91%
EBIT Next 5Y10.76%
FCF growth 1Y19.98%
FCF growth 3Y31.28%
FCF growth 5Y32.51%
OCF growth 1Y20.18%
OCF growth 3Y31.41%
OCF growth 5Y32.4%
INGERSOLL-RAND INC / IR FAQ
What is the ChartMill fundamental rating of INGERSOLL-RAND INC (IR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to IR.
What is the valuation status for IR stock?
ChartMill assigns a valuation rating of 2 / 10 to INGERSOLL-RAND INC (IR). This can be considered as Overvalued.
Can you provide the profitability details for INGERSOLL-RAND INC?
INGERSOLL-RAND INC (IR) has a profitability rating of 7 / 10.
What is the expected EPS growth for INGERSOLL-RAND INC (IR) stock?
The Earnings per Share (EPS) of INGERSOLL-RAND INC (IR) is expected to grow by 2.95% in the next year.
Can you provide the dividend sustainability for IR stock?
The dividend rating of INGERSOLL-RAND INC (IR) is 3 / 10 and the dividend payout ratio is 5.93%.