INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
81.61 USD
+0.08 (+0.1%)
81.61 USD
0 (0%)
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. Both the profitability and the financial health of IR get a neutral evaluation. Nothing too spectacular is happening here. IR is valied quite expensively at the moment, while 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.
Of the past 5 years IR 4 years were profitable.
Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
IR's Return On Assets of 2.87% is in line compared to the rest of the industry. IR outperforms 44.53% of its industry peers.
IR has a worse Return On Equity (5.14%) than 60.94% of its industry peers.
IR has a Return On Invested Capital (6.91%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.02%.
The last Return On Invested Capital (6.91%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.14% | ||
| ROIC | 6.91% |
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 7.04%, IR is in line with its industry, outperforming 57.03% of the companies in the same industry.
In the last couple of years the Profit Margin of IR has grown nicely.
The Operating Margin of IR (19.82%) is better than 88.28% of its industry peers.
IR's Operating Margin has improved in the last couple of years.
IR has a better Gross Margin (43.74%) than 79.69% of its industry peers.
IR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 7.04% | ||
| GM | 43.74% |
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.
IR has about the same amout of shares outstanding than it did 1 year ago.
IR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.47 indicates that IR is not in any danger for bankruptcy at the moment.
IR's Altman-Z score of 3.47 is fine compared to the rest of the industry. IR outperforms 60.94% of its industry peers.
The Debt to FCF ratio of IR is 3.68, which is a good value as it means it would take IR, 3.68 years of fcf income to pay off all of its debts.
IR's Debt to FCF ratio of 3.68 is fine compared to the rest of the industry. IR outperforms 60.16% of 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 46.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 3.47 |
ROIC/WACC0.7
WACC9.91%
2.3 Liquidity
IR has a Current Ratio of 2.29. This indicates that IR is financially healthy and has no problem in meeting its short term obligations.
IR's Current ratio of 2.29 is in line compared to the rest of the industry. IR outperforms 59.38% of its industry peers.
A Quick Ratio of 1.63 indicates that IR should not have too much problems paying its short term obligations.
The Quick ratio of IR (1.63) is better than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
IR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.23%.
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 4.67% 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)-1.23%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-3.61%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
3.2 Future
The Earnings Per Share is expected to grow by 10.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.43% on average over the next years.
EPS Next Y6.16%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
EPS Next 5Y10.24%
Revenue Next Year4.86%
Revenue Next 2Y5.03%
Revenue Next 3Y5.12%
Revenue Next 5Y6.43%
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 25.50, IR can be considered very expensive at the moment.
IR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of IR to the average of the S&P500 Index (27.38), we can say IR is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.28, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, IR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 21.28 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.98 | ||
| EV/EBITDA | 18.42 |
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.
IR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.14
PEG (5Y)1.63
EPS Next 2Y7.97%
EPS Next 3Y8.26%
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 1.74, IR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 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
IR pays out 6.23% of its income as dividend. This is a sustainable payout ratio.
DP6.23%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
81.61
+0.08 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-3.83%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap32.44B
Analysts76.8
Price Target91.95 (12.67%)
Short Float %3.12%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP6.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.64%
Min EPS beat(2)-4.75%
Max EPS beat(2)-2.53%
EPS beat(4)1
Avg EPS beat(4)-2.56%
Min EPS beat(4)-4.75%
Max EPS beat(4)0.25%
EPS beat(8)5
Avg EPS beat(8)2.46%
EPS beat(12)9
Avg EPS beat(12)5.38%
EPS beat(16)13
Avg EPS beat(16)6.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.79%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)-0.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)8
Avg Revenue beat(16)-0.35%
PT rev (1m)-0.71%
PT rev (3m)0.59%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)1.38%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)1.19%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.5 | ||
| Fwd PE | 21.28 | ||
| P/S | 4.4 | ||
| P/FCF | 24.98 | ||
| P/OCF | 22.65 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.42 |
EPS(TTM)3.2
EY3.92%
EPS(NY)3.84
Fwd EY4.7%
FCF(TTM)3.27
FCFY4%
OCF(TTM)3.6
OCFY4.42%
SpS18.53
BVpS25.38
TBVpS-6.35
PEG (NY)4.14
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.14% | ||
| ROCE | 9% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 48.63% | ||
| OM | 19.82% | ||
| PM (TTM) | 7.04% | ||
| GM | 43.74% | ||
| FCFM | 17.63% |
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%
ROICexcg growth 3Y22.68%
ROICexcg 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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 5.29 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 250.44% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 3.47 |
F-Score8
WACC9.91%
ROIC/WACC0.7
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)-1.23%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-3.61%
EPS Next Y6.16%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
EPS Next 5Y10.24%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
Revenue Next Year4.86%
Revenue Next 2Y5.03%
Revenue Next 3Y5.12%
Revenue Next 5Y6.43%
EBIT growth 1Y6.5%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year16.88%
EBIT Next 3Y10.46%
EBIT Next 5Y10.72%
FCF growth 1Y40.3%
FCF growth 3Y31.28%
FCF growth 5Y32.51%
OCF growth 1Y39.34%
OCF growth 3Y31.41%
OCF growth 5Y32.4%