INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
85.51 USD
+1.14 (+1.35%)
85.51 USD
0 (0%)
Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 132 industry peers in the Machinery industry. IR scores excellent on profitability, 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
In the past year IR was profitable.
In the past year IR had a positive cash flow from operations.
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.
IR has a Return On Equity (5.34%) which is in line with its industry peers.
IR's Return On Invested Capital of 6.95% is in line compared to the rest of the industry. IR outperforms 53.03% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.22%.
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
With a decent Profit Margin value of 7.25%, IR is doing good in 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.
IR has a Operating Margin of 19.75%. This is amongst the best in the industry. IR outperforms 88.64% of its industry peers.
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 81.82% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IR is destroying value.
Compared to 1 year ago, IR has about the same amount of shares outstanding.
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 3.55. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
IR's Altman-Z score of 3.55 is fine compared to the rest of the industry. IR outperforms 61.36% of its industry peers.
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.
IR's Debt to FCF ratio of 3.83 is fine compared to the rest of the industry. IR outperforms 61.36% 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 of 0.47. This is comparable to the rest of the industry: IR outperforms 48.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.73
WACC9.58%
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 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.
Looking at the Quick ratio, with a value of 1.51, IR is in the better half of the industry, outperforming 65.15% of the companies in the same industry.
| 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%.
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%.
The Revenue has been growing by 29.10% on average over the past years. This is a very strong growth!
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 6.58% 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 5Y6.58%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 26.56 indicates a quite expensive valuation of IR.
IR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. IR is around the same levels.
Based on the Price/Forward Earnings ratio of 23.17, the valuation of IR can be described as rather expensive.
IR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of IR to the average of the S&P500 Index (23.88), we can say IR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.56 | ||
| Fwd PE | 23.17 |
4.2 Price Multiples
IR's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.04 | ||
| EV/EBITDA | 19.06 |
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)9
PEG (5Y)1.7
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 0.81, 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 1.90.
| 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
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%
85.51
+1.14 (+1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.04%
Inst Owner Change0%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap33.79B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target90.06 (5.32%)
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 | 26.56 | ||
| Fwd PE | 23.17 | ||
| P/S | 4.53 | ||
| P/FCF | 27.04 | ||
| P/OCF | 24.43 | ||
| P/B | 3.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.06 |
EPS(TTM)3.22
EY3.77%
EPS(NY)3.69
Fwd EY4.32%
FCF(TTM)3.16
FCFY3.7%
OCF(TTM)3.5
OCFY4.09%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)9
PEG (5Y)1.7
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 | 3.55 |
F-Score5
WACC9.58%
ROIC/WACC0.73
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 26.56 and the Price/Book (PB) ratio is 3.34.
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.