INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
81.28 USD
-0.29 (-0.36%)
81.28 USD
0 (0%)
Taking everything into account, IR scores 5 out of 10 in our fundamental rating. IR was compared to 132 industry peers in the Machinery industry. While IR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, IR is valued expensive at the moment.
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.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IR (2.97%) is comparable to the rest of the industry.
With a Return On Equity value of 5.34%, IR perfoms like the industry average, outperforming 44.70% of the companies in the same industry.
IR's Return On Invested Capital of 6.95% is in line compared to the rest of the industry. IR outperforms 53.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for IR is below the industry average of 10.27%.
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 Profit Margin of 7.25%. This is in the better half of the industry: IR outperforms 63.64% of its industry peers.
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 88.64% of the companies in the same industry.
IR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 43.72%, IR belongs to the best of the industry, outperforming 80.30% of the companies in the same industry.
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.
The number of shares outstanding for IR remains at a similar level compared to 1 year ago.
IR has more shares outstanding than it did 5 years ago.
IR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.43 indicates that IR is not in any danger for bankruptcy at the moment.
IR has a Altman-Z score of 3.43. This is comparable to the rest of the industry: IR outperforms 59.09% 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.
The Debt to FCF ratio of IR (3.83) is better than 62.12% 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 (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 | 3.43 |
ROIC/WACC0.75
WACC9.33%
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 has a Current ratio of 2.16. This is comparable to the rest of the industry: IR outperforms 57.58% of 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.
IR has a better Quick ratio (1.51) than 65.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
IR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.72%.
The Earnings Per Share has been growing by 15.65% on average over the past years. This is quite good.
Looking at the last year, IR shows a small growth in Revenue. The Revenue has grown by 4.20% in the last year.
IR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.10% yearly.
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
IR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.57% yearly.
Based on estimates for the next years, IR will show a small growth in Revenue. The Revenue will grow by 6.57% on average per year.
EPS Next Y2.95%
EPS Next 2Y5.91%
EPS Next 3Y7.28%
EPS Next 5Y10.57%
Revenue Next Year4.77%
Revenue Next 2Y4.62%
Revenue Next 3Y4.9%
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
With a Price/Earnings ratio of 25.24, 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 26.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 22.02, IR is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of IR to the average of the S&P500 Index (23.46), we can say IR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 22.02 |
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.
IR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.7 | ||
| EV/EBITDA | 18.21 |
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)8.55
PEG (5Y)1.61
EPS Next 2Y5.91%
EPS Next 3Y7.28%
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 0.98, IR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, IR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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
5.93% of the earnings are spent on dividend by IR. This is a low number and sustainable payout ratio.
DP5.93%
EPS Next 2Y5.91%
EPS Next 3Y7.28%
81.28
-0.29 (-0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.78%
Inst Owner Change6.63%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap32.11B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target90.06 (10.8%)
Short Float %4.41%
Short Ratio5.71
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)0.24%
PT rev (3m)-2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 22.02 | ||
| P/S | 4.31 | ||
| P/FCF | 25.7 | ||
| P/OCF | 23.22 | ||
| P/B | 3.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.21 |
EPS(TTM)3.22
EY3.96%
EPS(NY)3.69
Fwd EY4.54%
FCF(TTM)3.16
FCFY3.89%
OCF(TTM)3.5
OCFY4.31%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)8.55
PEG (5Y)1.61
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 | 3.43 |
F-Score5
WACC9.33%
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 Y2.95%
EPS Next 2Y5.91%
EPS Next 3Y7.28%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.77%
Revenue Next 2Y4.62%
Revenue Next 3Y4.9%
Revenue Next 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year14.81%
EBIT Next 3Y9.88%
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%.