INGERSOLL-RAND INC (IR)
US45687V1061 - Common Stock
Overall IR gets a fundamental rating of 6 out of 10. We evaluated IR against 131 industry peers in the Machinery industry. While IR has a great profitability rating, there are some minor concerns on its financial health. IR is valued quite expensively, but it does show have an excellent growth rating. With these ratings, IR could be worth investigating further for growth investing!.
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.
Of the past 5 years IR 4 years were profitable.
IR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IR has a Return On Assets (4.61%) which is in line with its industry peers.
IR has a Return On Equity of 8.17%. This is comparable to the rest of the industry: IR outperforms 53.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.79%, IR is in line with its industry, outperforming 51.97% of the companies in the same industry.
IR had an Average Return On Invested Capital over the past 3 years of 5.30%. This is significantly below the industry average of 10.96%.
The 3 year average ROIC (5.30%) for IR is below the current ROIC(6.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.17% | ||
| ROIC | 6.79% |
ROA(3y)4.27%
ROA(5y)3.21%
ROE(3y)6.93%
ROE(5y)5.79%
ROIC(3y)5.3%
ROIC(5y)4.48%
1.3 Margins
IR's Profit Margin of 11.72% is amongst the best of the industry. IR outperforms 81.89% of its industry peers.
IR's Profit Margin has improved in the last couple of years.
IR has a Operating Margin of 19.90%. This is amongst the best in the industry. IR outperforms 88.19% of its industry peers.
IR's Operating Margin has been stable in the last couple of years.
The Gross Margin of IR (43.81%) is better than 83.46% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.9% | ||
| PM (TTM) | 11.72% | ||
| GM | 43.81% |
OM growth 3Y37.76%
OM growth 5Y1.4%
PM growth 3YN/A
PM growth 5Y2.49%
GM growth 3Y5.83%
GM growth 5Y2.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IR is destroying value.
IR has less 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 has been reduced compared to a year ago.
2.2 Solvency
IR has an Altman-Z score of 4.18. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.18, IR is doing good in the industry, outperforming 66.14% of the companies in the same industry.
IR has a debt to FCF ratio of 3.66. This is a good value and a sign of high solvency as IR would need 3.66 years to pay back of all of its debts.
IR has a Debt to FCF ratio of 3.66. This is in the better half of the industry: IR outperforms 60.63% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, IR perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.66 | ||
| Altman-Z | 4.18 |
ROIC/WACC0.78
WACC8.68%
2.3 Liquidity
A Current Ratio of 2.36 indicates that IR has no problem at all paying its short term obligations.
IR has a Current ratio (2.36) which is comparable to the rest of the industry.
A Quick Ratio of 1.71 indicates that IR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.71, IR is doing good in the industry, outperforming 70.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.38% over the past year.
The Earnings Per Share has been growing by 9.50% on average over the past years. This is quite good.
IR shows a small growth in Revenue. In the last year, the Revenue has grown by 7.18%.
Measured over the past years, IR shows a very strong growth in Revenue. The Revenue has been growing by 20.65% on average per year.
EPS 1Y (TTM)17.38%
EPS 3Y25.15%
EPS 5Y9.5%
EPS Q2Q%9.09%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y20.65%
Sales Q2Q%7.02%
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 12.77% yearly.
The Revenue is expected to grow by 8.51% on average over the next years. This is quite good.
EPS Next Y15.18%
EPS Next 2Y10.97%
EPS Next 3Y10.66%
EPS Next 5Y12.77%
Revenue Next Year6.27%
Revenue Next 2Y6.34%
Revenue Next 3Y6.13%
Revenue Next 5Y8.51%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.66, which means the current valuation is very expensive for IR.
64.57% of the companies in the same industry are cheaper than IR, based on the Price/Earnings ratio.
IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.38.
Based on the Price/Forward Earnings ratio of 28.75, the valuation of IR can be described as expensive.
Based on the Price/Forward Earnings ratio, IR is valued a bit more expensive than 60.63% of the companies in the same industry.
IR's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 28.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IR is valued a bit more expensive than the industry average as 66.93% of the companies are valued more cheaply.
IR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.28 | ||
| EV/EBITDA | 24.02 |
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)2.09
PEG (5Y)3.33
EPS Next 2Y10.97%
EPS Next 3Y10.66%
5. Dividend
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 1.52, 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 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
IR has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of IR decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IR pays out 3.85% of its income as dividend. This is a sustainable payout ratio.
DP3.85%
EPS Next 2Y10.97%
EPS Next 3Y10.66%
INGERSOLL-RAND INC
NYSE:IR (11/11/2024, 8:04:00 PM)
After market: 104.8 0 (0%)104.8
+2.19 (+2.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap42.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.66 | ||
| Fwd PE | 28.75 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.09
PEG (5Y)3.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.61% | ||
| ROE | 8.17% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 19.9% | ||
| PM (TTM) | 11.72% | ||
| GM | 43.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.36 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.38%
EPS 3Y25.15%
EPS 5Y
EPS Q2Q%
EPS Next Y15.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.18%
Revenue growth 3Y20.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y