INGERSOLL-RAND INC (IR)
US45687V1061 - Common Stock
Overall IR gets a fundamental rating of 6 out of 10. We evaluated IR against 132 industry peers in the Machinery industry. IR scores excellent on profitability, but there are some minor concerns on its financial health. IR is valied quite expensively at the moment, while 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.
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
IR has a Return On Assets of 4.61%. This is comparable to the rest of the industry: IR outperforms 56.15% of its industry peers.
With a Return On Equity value of 8.17%, IR perfoms like the industry average, outperforming 54.62% of the companies in the same industry.
IR's Return On Invested Capital of 6.79% is in line compared to the rest of the industry. IR outperforms 54.62% 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 10.90%.
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
IR has a Profit Margin of 11.72%. This is amongst the best in the industry. IR outperforms 81.54% of its industry peers.
IR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 19.90%, IR belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Operating Margin of IR has remained more or less at the same level.
IR has a better Gross Margin (43.81%) than 80.77% 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.
IR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.80 indicates that IR is not in any danger for bankruptcy at the moment.
IR has a better Altman-Z score (3.80) than 62.31% 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.
Looking at the Debt to FCF ratio, with a value of 3.66, IR is in the better half of the industry, outperforming 61.54% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 3.8 |
ROIC/WACC0.76
WACC8.92%
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.
IR has a Current ratio (2.36) which is in line with its industry peers.
A Quick Ratio of 1.71 indicates that IR should not have too much problems paying its short term obligations.
IR's Quick ratio of 1.71 is fine compared to the rest of the industry. IR outperforms 71.54% 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 11.44% on average per year.
Based on estimates for the next years, IR will show a small growth in Revenue. The Revenue will grow by 7.37% on average per year.
EPS Next Y15.2%
EPS Next 2Y11.05%
EPS Next 3Y10.75%
EPS Next 5Y11.44%
Revenue Next Year6.31%
Revenue Next 2Y6.46%
Revenue Next 3Y6.3%
Revenue Next 5Y7.37%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.88, which means the current valuation is very expensive for IR.
Compared to the rest of the industry, the Price/Earnings ratio of IR indicates a slightly more expensive valuation: IR is more expensive than 60.77% 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 27.73.
IR is valuated quite expensively with a Price/Forward Earnings ratio of 25.28.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, IR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.88 | ||
| Fwd PE | 25.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IR is valued a bit more expensive than the industry average as 64.62% of the companies are valued more cheaply.
IR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.42 | ||
| EV/EBITDA | 21.37 |
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)1.83
PEG (5Y)2.93
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.
IR's Dividend Yield is comparable with the industry average which is at 1.69.
Compared to an average S&P500 Dividend Yield of 2.34, IR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
5.2 History
IR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of IR decreased 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 2Y11.05%
EPS Next 3Y10.75%
INGERSOLL-RAND INC
NYSE:IR (12/20/2024, 8:18:52 PM)
After market: 92.28 0 (0%)92.28
+1.02 (+1.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.1%
Inst Owner Change1.4%
Ins Owners0.18%
Ins Owner Change-0.56%
Market Cap37.19B
Analysts78.4
Price Target112.45 (21.86%)
Short Float %2.3%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Dividend Growth(5Y)N/A
DP3.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)3.75%
PT rev (3m)7.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.68%
EPS NY rev (1m)0.02%
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)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.88 | ||
| Fwd PE | 25.28 | ||
| P/S | 5.2 | ||
| P/FCF | 28.42 | ||
| P/OCF | 25.61 | ||
| P/B | 3.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.37 |
EPS(TTM)3.31
EY3.59%
EPS(NY)3.65
Fwd EY3.96%
FCF(TTM)3.25
FCFY3.52%
OCF(TTM)3.6
OCFY3.9%
SpS17.76
BVpS25.48
TBVpS-5.92
PEG (NY)1.83
PEG (5Y)2.93
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 | 3.8 |
F-Score6
WACC8.92%
ROIC/WACC0.76
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 5Y11.44%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y20.65%
Sales Q2Q%7.02%
Revenue Next Year6.31%
Revenue Next 2Y6.46%
Revenue Next 3Y6.3%
Revenue Next 5Y7.37%
EBIT growth 1Y21.24%
EBIT growth 3Y65.39%
EBIT growth 5Y22.34%
EBIT Next Year44.89%
EBIT Next 3Y19.25%
EBIT Next 5Y15.37%
FCF growth 1Y99.22%
FCF growth 3Y13.4%
FCF growth 5Y26.52%
OCF growth 1Y95.99%
OCF growth 3Y14.64%
OCF growth 5Y25.38%