INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
88.16 USD
+0.84 (+0.96%)
87.01 USD
-1.15 (-1.3%)
Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 132 industry peers in the Machinery industry. IR has an excellent profitability rating, but there are some minor concerns on its financial health. IR is quite expensive at the moment. 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.
- IR had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.97%, IR is in line with its industry, outperforming 46.21% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 5.34%, IR is in line with its industry, outperforming 44.70% of the companies in the same industry.
- IR has a Return On Invested Capital (6.95%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for IR is below the industry average of 10.24%.
- 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's Profit Margin of 7.25% is fine compared to the rest 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.
- IR has a Operating Margin of 19.75%. This is amongst the best in the industry. IR outperforms 88.64% of its industry peers.
- In the last couple of years the Operating Margin of IR has grown nicely.
- IR's Gross Margin of 43.72% is amongst the best of the industry. IR outperforms 81.82% 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.
- IR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.61 indicates that IR is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.61, IR is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
- The Debt to FCF ratio of IR is 3.83, which is a good value as it means it would take IR, 3.83 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 3.83, IR is doing good in the industry, outperforming 61.36% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.74
WACC9.44%
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.
- Looking at the Current ratio, with a value of 2.16, IR is in line with its industry, outperforming 57.58% of the companies in the same industry.
- 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 65.15% 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
- 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.
- The Revenue is expected to grow by 6.58% on average over the next years.
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 5Y6.58%
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 27.38, IR can be considered very expensive at the moment.
- IR's Price/Earnings is on the same level as the industry average.
- IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.47.
- A Price/Forward Earnings ratio of 23.89 indicates a rather expensive valuation of IR.
- IR's Price/Forward Earnings is on the same level as the industry average.
- IR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 23.89 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as IR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.88 | ||
| EV/EBITDA | 19.43 |
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.
PEG (NY)9.27
PEG (5Y)1.75
EPS Next 2Y5.91%
EPS Next 3Y7.28%
5. Dividend
5.1 Amount
- IR has a yearly dividend return of 0.09%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.80, IR has a dividend in line with its industry peers.
- With a Dividend Yield of 0.09, IR pays less dividend than the S&P500 average, which is at 1.89.
| 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.
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 2Y5.91%
EPS Next 3Y7.28%
88.16
+0.84 (+0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners105.04%
Inst Owner Change0.1%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap34.83B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target90.06 (2.16%)
Short Float %4.42%
Short Ratio5.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP5.93%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.73%
PT rev (3m)-2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 23.89 | ||
| P/S | 4.67 | ||
| P/FCF | 27.88 | ||
| P/OCF | 25.19 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.43 |
EPS(TTM)3.22
EY3.65%
EPS(NY)3.69
Fwd EY4.19%
FCF(TTM)3.16
FCFY3.59%
OCF(TTM)3.5
OCFY3.97%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)9.27
PEG (5Y)1.75
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 | 3.61 |
F-Score5
WACC9.44%
ROIC/WACC0.74
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 5Y6.58%
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 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 27.38 and the Price/Book (PB) ratio is 3.44.
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 2.95% in the next year.