INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
73.56 USD
-0.11 (-0.15%)
73.58 USD
+0.02 (+0.03%)
Taking everything into account, IR scores 5 out of 10 in our fundamental rating. IR was compared to 130 industry peers in the Machinery industry. While IR has a great profitability rating, 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.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
IR has a Return On Assets (2.97%) which is in line with its industry peers.
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 53.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.24%.
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
The Profit Margin of IR (7.25%) is better than 60.77% of its industry peers.
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 88.46% of the companies in the same industry.
IR's Operating Margin has improved in the last couple of years.
IR's Gross Margin of 43.72% is fine compared to the rest of the industry. IR outperforms 80.00% 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.
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
IR has an Altman-Z score of 3.21. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.21, IR is in line with its industry, outperforming 58.46% 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.
IR has a Debt to FCF ratio of 3.83. This is in the better half of the industry: IR outperforms 63.08% 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.
Looking at the Debt to Equity ratio, with a value of 0.47, IR is in line with its industry, outperforming 46.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.74
WACC9.4%
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.
IR's Current ratio of 2.16 is in line compared to the rest of the industry. IR outperforms 53.85% of its industry peers.
IR has a Quick Ratio of 1.51. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.51, IR is doing good in the industry, outperforming 62.31% of the companies in the same industry.
| 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%.
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
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.
IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.57% yearly.
EPS Next Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
Revenue Next 5Y6.57%
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.
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
Based on the Price/Earnings ratio of 22.84, the valuation of IR can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as IR.
IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.51.
IR is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
The rest of the industry has a similar Price/Forward Earnings ratio as IR.
The average S&P500 Price/Forward Earnings ratio is at 34.98. IR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.5 |
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 | 23.4 | ||
| EV/EBITDA | 16.74 |
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)5.54
PEG (5Y)1.46
EPS Next 2Y7.09%
EPS Next 3Y8.02%
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 1.87, 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 2.44.
| 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 5.93% of its income as dividend. This is a sustainable payout ratio.
DP5.93%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
73.56
-0.11 (-0.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change6.59%
Ins Owners0.17%
Ins Owner Change0.49%
Market Cap29.24B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target92.97 (26.39%)
Short Float %3.5%
Short Ratio3.91
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)1.11%
PT rev (3m)0.39%
EPS NQ rev (1m)-8.6%
EPS NQ rev (3m)-5.69%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 19.5 | ||
| P/S | 3.92 | ||
| P/FCF | 23.4 | ||
| P/OCF | 21.14 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.74 |
EPS(TTM)3.22
EY4.38%
EPS(NY)3.77
Fwd EY5.13%
FCF(TTM)3.14
FCFY4.27%
OCF(TTM)3.48
OCFY4.73%
SpS18.77
BVpS25.47
TBVpS-6.57
PEG (NY)5.54
PEG (5Y)1.46
Graham Number42.96
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 | 3.21 |
F-Score5
WACC9.4%
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 Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
Revenue Next 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year17.42%
EBIT Next 3Y10.55%
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 3 / 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 4.12% 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%.