INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
77.24 USD
+1.24 (+1.63%)
77.24 USD
0 (0%)
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. IR has only an average score on both its financial health and profitability. While showing a medium growth rate, IR is valued expensive at the moment.
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.
IR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
IR has a Return On Assets (2.97%) which is comparable to the rest of the industry.
IR has a Return On Equity of 5.34%. This is in the lower half of the industry: IR underperforms 60.00% of its industry peers.
IR has a Return On Invested Capital (6.85%) which is in line with its industry peers.
IR had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.24%.
The 3 year average ROIC (6.33%) for IR is below the current ROIC(6.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROIC | 6.85% |
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
IR has a Profit Margin (7.25%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a Operating Margin of 19.44%. This is amongst the best in the industry. IR outperforms 87.69% of its industry peers.
IR's Operating Margin has improved in the last couple of years.
IR has a Gross Margin of 43.72%. This is in the better half 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 | 19.44% | ||
| 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.
Compared to 1 year ago, IR has about the same amount of shares outstanding.
IR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, IR has a worse debt to assets ratio.
2.2 Solvency
IR has an Altman-Z score of 3.32. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
IR's Altman-Z score of 3.32 is in line compared to the rest of the industry. IR outperforms 57.69% of its industry peers.
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.
The Debt to FCF ratio of IR (3.83) is better than 60.77% 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.
The Debt to Equity ratio of IR (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.72
WACC9.46%
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 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.
IR has a better Quick ratio (1.51) than 63.08% 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.
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
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.
The Revenue is expected to grow by 6.57% on average over the next years.
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
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
The Price/Earnings ratio is 23.99, which indicates a rather expensive current valuation of IR.
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 (26.03), we can say IR is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.47, the valuation of IR can be described as rather expensive.
IR's Price/Forward Earnings ratio is in line with the industry average.
IR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.27, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IR.
IR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.57 | ||
| EV/EBITDA | 17.7 |
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)5.82
PEG (5Y)1.53
EPS Next 2Y7.09%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
IR has a yearly dividend return of 0.11%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, 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 | 0.11% |
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 2Y7.09%
EPS Next 3Y8.02%
77.24
+1.24 (+1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change0.29%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap30.70B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target92.97 (20.37%)
Short Float %3.93%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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)-1.01%
EPS NQ rev (1m)-1.22%
EPS NQ rev (3m)4.52%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.88%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 20.47 | ||
| P/S | 4.12 | ||
| P/FCF | 24.57 | ||
| P/OCF | 22.2 | ||
| P/B | 3.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.7 |
EPS(TTM)3.22
EY4.17%
EPS(NY)3.77
Fwd EY4.89%
FCF(TTM)3.14
FCFY4.07%
OCF(TTM)3.48
OCFY4.5%
SpS18.77
BVpS25.47
TBVpS-6.57
PEG (NY)5.82
PEG (5Y)1.53
Graham Number42.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROCE | 8.92% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 47.3% | ||
| OM | 19.44% | ||
| 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 | 2.47 | ||
| Cap/Depr | 27.3% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.33% | ||
| Profit Quality | 231% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.32 |
F-Score5
WACC9.46%
ROIC/WACC0.72
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 1Y1.83%
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 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 6 / 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%.