INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:IR • US45687V1061
88.68 USD
+2.59 (+3.01%)
Last: Feb 2, 2026, 02:02 PM
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
- In the past year IR had a positive cash flow from operations.
- Of the past 5 years IR 4 years were profitable.
- Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
- IR's Return On Assets of 2.97% is in line compared to the rest of the industry. IR outperforms 46.21% of its industry peers.
- The Return On Equity of IR (5.34%) is comparable to the rest of the industry.
- With a Return On Invested Capital value of 6.95%, IR perfoms like the industry average, outperforming 53.03% of the companies in the same industry.
- IR had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.18%.
- 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
- 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.
- The Operating Margin of IR (19.75%) is better than 89.39% of its industry peers.
- IR's Operating Margin has improved in the last couple of years.
- The Gross Margin of IR (43.72%) is better than 81.82% 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.
- IR has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, IR has more shares outstanding
- Compared to 1 year ago, IR has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.57 indicates that IR is not in any danger for bankruptcy at the moment.
- IR has a better Altman-Z score (3.57) than 60.61% of its industry peers.
- 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.
- IR has a Debt to FCF ratio of 3.83. This is in the better half of the industry: IR outperforms 60.61% of its industry peers.
- A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.47, IR is in line with its industry, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.73
WACC9.57%
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.
- With a decent Quick ratio value of 1.51, IR is doing good in the industry, outperforming 65.15% 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.
- 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.
- Looking at the last year, IR shows a small growth in Revenue. The Revenue has grown by 4.20% in the last 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.
- Based on estimates for the next years, IR will show a small growth in Revenue. The Revenue will grow by 6.58% on average per year.
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
- 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.
- 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
- With a Price/Earnings ratio of 27.54, IR can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as IR.
- IR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.17, which indicates a rather expensive current valuation of IR.
- IR's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. IR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 24.17 |
4.2 Price Multiples
- IR's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as IR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.04 | ||
| EV/EBITDA | 19.18 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- IR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)9.67
PEG (5Y)1.76
EPS Next 2Y5.6%
EPS Next 3Y7.1%
5. Dividend
5.1 Amount
- IR has a yearly dividend return of 0.09%, which is pretty low.
- IR's Dividend Yield is comparable with the industry average which is at 1.01.
- 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%
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 27.54 and the Price/Book (PB) ratio is 3.46.
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.