INGERSOLL-RAND INC (IR) Fundamental Analysis & Valuation

NYSE:IR • US45687V1061

82.42 USD
-2.75 (-3.23%)
Last: Mar 12, 2026, 12:22 PM
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This IR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 131 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. IR is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

7

1. IR Profitability Analysis

1.1 Basic Checks

  • In the past year IR was profitable.
  • IR had a positive operating cash flow in the past year.
  • IR had positive earnings in each of the past 5 years.
  • In the past 5 years IR always reported a positive cash flow from operatings.
IR Yearly Net Income VS EBIT VS OCF VS FCFIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.18%, IR is in line with its industry, outperforming 47.33% of the companies in the same industry.
  • IR has a Return On Equity (5.76%) which is comparable to the rest of the industry.
  • Looking at the Return On Invested Capital, with a value of 7.13%, IR is in line with its industry, outperforming 54.96% of the companies in the same industry.
  • IR had an Average Return On Invested Capital over the past 3 years of 6.98%. This is below the industry average of 10.16%.
  • The 3 year average ROIC (6.98%) for IR is below the current ROIC(7.13%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 3.18%
ROE 5.76%
ROIC 7.13%
ROA(3y)4.28%
ROA(5y)4.13%
ROE(3y)7.32%
ROE(5y)6.96%
ROIC(3y)6.98%
ROIC(5y)5.92%
IR Yearly ROA, ROE, ROICIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5 10 -10 15

1.3 Margins

  • IR has a better Profit Margin (7.60%) than 64.12% of its industry peers.
  • IR's Profit Margin has declined in the last couple of years.
  • IR's Operating Margin of 19.73% is amongst the best of the industry. IR outperforms 89.31% of its industry peers.
  • In the last couple of years the Operating Margin of IR has grown nicely.
  • With an excellent Gross Margin value of 43.61%, IR belongs to the best of the industry, outperforming 82.44% of the companies in the same industry.
  • In the last couple of years the Gross Margin of IR has grown nicely.
Industry RankSector Rank
OM 19.73%
PM (TTM) 7.6%
GM 43.61%
OM growth 3Y9.9%
OM growth 5Y23.36%
PM growth 3Y-9.41%
PM growth 5YN/A
GM growth 3Y3.52%
GM growth 5Y4.28%
IR Yearly Profit, Operating, Gross MarginsIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30 40

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6

2. IR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IR is destroying value.
  • The number of shares outstanding for IR has been reduced compared to 1 year ago.
  • The number of shares outstanding for IR has been reduced compared to 5 years ago.
  • The debt/assets ratio for IR has been reduced compared to a year ago.
IR Yearly Shares OutstandingIR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M
IR Yearly Total Debt VS Total AssetsIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.53 indicates that IR is not in any danger for bankruptcy at the moment.
  • IR's Altman-Z score of 3.53 is fine compared to the rest of the industry. IR outperforms 61.07% of its industry peers.
  • IR has a debt to FCF ratio of 3.92. This is a good value and a sign of high solvency as IR would need 3.92 years to pay back of all of its debts.
  • IR has a Debt to FCF ratio (3.92) which is in line with its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
  • IR's Debt to Equity ratio of 0.47 is in line compared to the rest of the industry. IR outperforms 48.09% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 3.92
Altman-Z 3.53
ROIC/WACC0.78
WACC9.18%
IR Yearly LT Debt VS Equity VS FCFIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 2.06 indicates that IR has no problem at all paying its short term obligations.
  • IR has a Current ratio of 2.06. This is comparable to the rest of the industry: IR outperforms 48.85% of its industry peers.
  • A Quick Ratio of 1.49 indicates that IR should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.49, IR is in the better half of the industry, outperforming 63.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 1.49
IR Yearly Current Assets VS Current LiabilitesIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. IR Growth Analysis

3.1 Past

  • IR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.52%.
  • Measured over the past years, IR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.21% on average per year.
  • IR shows a small growth in Revenue. In the last year, the Revenue has grown by 5.75%.
  • Measured over the past years, IR shows a quite strong growth in Revenue. The Revenue has been growing by 14.00% on average per year.
EPS 1Y (TTM)1.52%
EPS 3Y12.12%
EPS 5Y17.21%
EPS Q2Q%14.29%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y8.95%
Revenue growth 5Y14%
Sales Q2Q%10.14%

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 13.04% on average per year.
  • IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
EPS Next Y9.84%
EPS Next 2Y10.02%
EPS Next 3Y12.12%
EPS Next 5Y13.04%
Revenue Next Year4.78%
Revenue Next 2Y4.84%
Revenue Next 3Y4.94%
Revenue Next 5Y7.11%

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.
IR Yearly Revenue VS EstimatesIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B 8B 10B
IR Yearly EPS VS EstimatesIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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3

4. IR Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 24.68 indicates a rather expensive valuation of IR.
  • Compared to the rest of the industry, the Price/Earnings ratio of IR is on the same level as its industry peers.
  • IR is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 22.47, the valuation of IR can be described as rather expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as IR.
  • IR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.27, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.68
Fwd PE 22.47
IR Price Earnings VS Forward Price EarningsIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • IR's Enterprise Value to EBITDA is on the same level as the industry average.
  • IR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.69
EV/EBITDA 18.45
IR Per share dataIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

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.
  • The decent profitability rating of IR may justify a higher PE ratio.
  • IR's earnings are expected to grow with 12.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)1.43
EPS Next 2Y10.02%
EPS Next 3Y12.12%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. IR Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.08%, IR is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.13, IR has a dividend in line with its industry peers.
  • With a Dividend Yield of 0.08, IR pays less dividend than the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 0.08%

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
IR Yearly Dividends per shareIR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • IR pays out 5.47% of its income as dividend. This is a sustainable payout ratio.
DP5.47%
EPS Next 2Y10.02%
EPS Next 3Y12.12%
IR Yearly Income VS Free CF VS DividendIR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B
IR Dividend Payout.IR Dividend Payout, showing the Payout Ratio.IR Dividend Payout.PayoutRetained Earnings

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IR Fundamentals: All Metrics, Ratios and Statistics

INGERSOLL-RAND INC

NYSE:IR (3/12/2026, 12:22:05 PM)

82.42

-2.75 (-3.23%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)02-12
Earnings (Next)04-29
Inst Owners105.04%
Inst Owner Change-2.41%
Ins Owners0.17%
Ins Owner Change2.45%
Market Cap32.56B
Revenue(TTM)7.65B
Net Income(TTM)581.40M
Analysts76.8
Price Target104.35 (26.61%)
Short Float %4.09%
Short Ratio4.24
Dividend
Industry RankSector Rank
Dividend Yield 0.08%
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP5.47%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-04
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.13%
Min EPS beat(2)-2.93%
Max EPS beat(2)3.18%
EPS beat(4)1
Avg EPS beat(4)-1.76%
Min EPS beat(4)-4.75%
Max EPS beat(4)3.18%
EPS beat(8)4
Avg EPS beat(8)0.34%
EPS beat(12)8
Avg EPS beat(12)4.24%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-2.64%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.84%
Min Revenue beat(4)-3.44%
Max Revenue beat(4)-0.47%
Revenue beat(8)0
Avg Revenue beat(8)-2.69%
Revenue beat(12)3
Avg Revenue beat(12)-0.98%
Revenue beat(16)7
Avg Revenue beat(16)-0.4%
PT rev (1m)14.2%
PT rev (3m)16.71%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-2.2%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 24.68
Fwd PE 22.47
P/S 4.26
P/FCF 26.69
P/OCF 24.02
P/B 3.23
P/tB N/A
EV/EBITDA 18.45
EPS(TTM)3.34
EY4.05%
EPS(NY)3.67
Fwd EY4.45%
FCF(TTM)3.09
FCFY3.75%
OCF(TTM)3.43
OCFY4.16%
SpS19.36
BVpS25.54
TBVpS-6.67
PEG (NY)2.51
PEG (5Y)1.43
Graham Number43.81
Profitability
Industry RankSector Rank
ROA 3.18%
ROE 5.76%
ROCE 9.3%
ROIC 7.13%
ROICexc 7.73%
ROICexgc 51.27%
OM 19.73%
PM (TTM) 7.6%
GM 43.61%
FCFM 15.95%
ROA(3y)4.28%
ROA(5y)4.13%
ROE(3y)7.32%
ROE(5y)6.96%
ROIC(3y)6.98%
ROIC(5y)5.92%
ROICexc(3y)7.73%
ROICexc(5y)6.64%
ROICexgc(3y)51.08%
ROICexgc(5y)43.67%
ROCE(3y)9.11%
ROCE(5y)7.72%
ROICexgc growth 3Y11.76%
ROICexgc growth 5Y33.98%
ROICexc growth 3Y9.56%
ROICexc growth 5Y36.29%
OM growth 3Y9.9%
OM growth 5Y23.36%
PM growth 3Y-9.41%
PM growth 5YN/A
GM growth 3Y3.52%
GM growth 5Y4.28%
F-Score6
Asset Turnover0.42
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 3.92
Debt/EBITDA 2.37
Cap/Depr 26.81%
Cap/Sales 1.77%
Interest Coverage 6.06
Cash Conversion 67.27%
Profit Quality 209.86%
Current Ratio 2.06
Quick Ratio 1.49
Altman-Z 3.53
F-Score6
WACC9.18%
ROIC/WACC0.78
Cap/Depr(3y)26.9%
Cap/Depr(5y)23.55%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.64%
Profit Quality(3y)173.99%
Profit Quality(5y)149.33%
High Growth Momentum
Growth
EPS 1Y (TTM)1.52%
EPS 3Y12.12%
EPS 5Y17.21%
EPS Q2Q%14.29%
EPS Next Y9.84%
EPS Next 2Y10.02%
EPS Next 3Y12.12%
EPS Next 5Y13.04%
Revenue 1Y (TTM)5.75%
Revenue growth 3Y8.95%
Revenue growth 5Y14%
Sales Q2Q%10.14%
Revenue Next Year4.78%
Revenue Next 2Y4.84%
Revenue Next 3Y4.94%
Revenue Next 5Y7.11%
EBIT growth 1Y4.1%
EBIT growth 3Y19.73%
EBIT growth 5Y40.63%
EBIT Next Year19.41%
EBIT Next 3Y11.06%
EBIT Next 5Y13.06%
FCF growth 1Y-2.2%
FCF growth 3Y16.8%
FCF growth 5Y6.94%
OCF growth 1Y-2.94%
OCF growth 3Y16.37%
OCF growth 5Y8.2%

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 3 / 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 24.68 and the Price/Book (PB) ratio is 3.23.


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 9.84% in the next year.