INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
81.57 USD
+0.12 (+0.15%)
81.57 USD
0 (0%)
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. 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.
IR had positive earnings in 4 of the past 5 years.
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 46.97% of the companies in the same industry.
IR has a Return On Equity (5.34%) which is comparable to the rest of the industry.
The Return On Invested Capital of IR (6.95%) is comparable to the rest of the industry.
IR had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.27%.
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.
With an excellent Operating Margin value of 19.75%, IR belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
In the last couple of years the Operating Margin of IR has grown nicely.
IR has a Gross Margin of 43.72%. This is amongst the best in the industry. IR outperforms 80.30% 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
IR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, IR has more shares outstanding
IR has a worse debt/assets ratio than last year.
2.2 Solvency
IR has an Altman-Z score of 3.44. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.44, IR is doing good in the industry, outperforming 61.36% 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.
With a decent Debt to FCF ratio value of 3.83, IR is doing good in the industry, outperforming 62.12% 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 | 3.44 |
ROIC/WACC0.74
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.16 indicates that IR has no problem at all paying its short term obligations.
The Current ratio of IR (2.16) is comparable to the rest of the industry.
A Quick Ratio of 1.51 indicates that IR should not have too much problems paying its short term obligations.
IR's Quick ratio of 1.51 is fine compared to the rest of the industry. IR outperforms 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%.
IR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.65% yearly.
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
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 6.57% 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 25.33, IR can be considered very expensive at the moment.
IR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.59. IR is around the same levels.
IR is valuated rather expensively with a Price/Forward Earnings ratio of 22.10.
IR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.03. IR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 22.1 |
4.2 Price Multiples
IR's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as IR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.79 | ||
| EV/EBITDA | 18.27 |
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)8.58
PEG (5Y)1.62
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 1.04, IR has a dividend in line with its industry peers.
With a Dividend Yield of 0.10, IR pays less dividend than the S&P500 average, which is at 1.87.
| 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%
81.57
+0.12 (+0.15%)
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 Cap32.23B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target90.06 (10.41%)
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)-3.14%
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 | 25.33 | ||
| Fwd PE | 22.1 | ||
| P/S | 4.32 | ||
| P/FCF | 25.79 | ||
| P/OCF | 23.31 | ||
| P/B | 3.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.27 |
EPS(TTM)3.22
EY3.95%
EPS(NY)3.69
Fwd EY4.52%
FCF(TTM)3.16
FCFY3.88%
OCF(TTM)3.5
OCFY4.29%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)8.58
PEG (5Y)1.62
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 | 3.44 |
F-Score5
WACC9.37%
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 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year14.81%
EBIT Next 3Y9.91%
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%.