INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
79.46 USD
+1.72 (+2.21%)
79.41 USD
-0.05 (-0.06%)
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 valied quite expensively at the moment, while 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.
Of the past 5 years IR 4 years were profitable.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.97%, IR perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
IR has a Return On Equity (5.34%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 6.95%, IR is in line with its industry, outperforming 53.85% 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 10.34%.
The 3 year average ROIC (6.33%) for IR is below the current ROIC(6.95%), indicating increased profibility in the last year.
| 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
IR has a better Profit Margin (7.25%) than 62.31% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
IR's Operating Margin of 19.75% is amongst the best of the industry. IR outperforms 88.46% of its industry peers.
In the last couple of years the Operating Margin of IR has grown nicely.
IR has a Gross Margin of 43.72%. This is in the better half of the industry: IR outperforms 80.00% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| 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.
The number of shares outstanding for IR has been increased compared to 5 years ago.
Compared to 1 year ago, IR has a worse debt to assets ratio.
2.2 Solvency
IR has an Altman-Z score of 3.32. 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 3.32, IR is in the better half of the industry, outperforming 60.77% of the companies in the same 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.
IR has a Debt to FCF ratio of 3.83. This is in the better half of the industry: IR outperforms 63.08% of 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.
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 | 3.83 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.75
WACC9.24%
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.
A Quick Ratio of 1.51 indicates that IR should not have too much problems paying its short term obligations.
IR has a better Quick ratio (1.51) than 63.85% of its industry peers.
| 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.
IR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.20%.
Measured over the past years, IR shows a very strong growth in Revenue. The Revenue has been growing by 29.10% on average per year.
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.
IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
Revenue Next 5Y6.57%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 24.68.
Compared to the rest of the industry, the Price/Earnings ratio of IR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 25.98. IR is around the same levels.
A Price/Forward Earnings ratio of 21.06 indicates a rather expensive valuation of IR.
IR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.79. IR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 21.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IR.
IR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.13 | ||
| EV/EBITDA | 17.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IR may justify a higher PE ratio.
PEG (NY)5.98
PEG (5Y)1.58
EPS Next 2Y7.09%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.11%, IR is not a good candidate for dividend investing.
IR's Dividend Yield is comparable with the industry average which is at 1.97.
With a Dividend Yield of 0.11, IR pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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 2Y7.09%
EPS Next 3Y8.02%
79.46
+1.72 (+2.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change6.56%
Ins Owners0.17%
Ins Owner Change0.22%
Market Cap31.40B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target89.84 (13.06%)
Short Float %3.5%
Short Ratio3.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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)-2.3%
PT rev (3m)-2.99%
EPS NQ rev (1m)-8.25%
EPS NQ rev (3m)-8.94%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.68 | ||
| Fwd PE | 21.06 | ||
| P/S | 4.21 | ||
| P/FCF | 25.13 | ||
| P/OCF | 22.7 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.5 |
EPS(TTM)3.22
EY4.05%
EPS(NY)3.77
Fwd EY4.75%
FCF(TTM)3.16
FCFY3.98%
OCF(TTM)3.5
OCFY4.4%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)5.98
PEG (5Y)1.58
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 | 3.32 |
F-Score5
WACC9.24%
ROIC/WACC0.75
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 Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
Revenue Next 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year17.42%
EBIT Next 3Y10.55%
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 3 / 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 4.12% 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%.