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Why NYSE:IR Is a Standout High-Growth Stock in a Consolidation Phase.

By Mill Chart

Last update: Dec 19, 2023

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether INGERSOLL-RAND INC (NYSE:IR) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but INGERSOLL-RAND INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

ChartMill's Evaluation of Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:IR scores a 8 out of 10:

  • IR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.03%, which is quite impressive.
  • Measured over the past years, IR shows a very strong growth in Earnings Per Share. The EPS has been growing by 74.83% on average per year.
  • Looking at the last year, IR shows a quite strong growth in Revenue. The Revenue has grown by 16.93% in the last year.
  • IR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.02% yearly.
  • The Earnings Per Share is expected to grow by 14.86% on average over the next years. This is quite good.
  • IR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.19% yearly.

Assessing Health Metrics for NYSE:IR

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:IR, the assigned 7 for health provides valuable insights:

  • IR has an Altman-Z score of 4.24. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 4.24, IR is doing good in the industry, outperforming 74.24% of the companies in the same industry.
  • IR has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as IR would need 2.62 years to pay back of all of its debts.
  • IR has a better Debt to FCF ratio (2.62) than 75.76% of its industry peers.
  • IR has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
  • IR's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. IR outperforms 63.64% of its industry peers.
  • A Current Ratio of 2.26 indicates that IR has no problem at all paying its short term obligations.
  • IR has a Quick ratio of 1.60. This is in the better half of the industry: IR outperforms 71.21% of its industry peers.

Profitability Assessment of NYSE:IR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:IR has earned a 7 out of 10:

  • IR's Return On Assets of 5.06% is fine compared to the rest of the industry. IR outperforms 60.61% of its industry peers.
  • The 3 year average ROIC (3.50%) for IR is below the current ROIC(6.87%), indicating increased profibility in the last year.
  • The Profit Margin of IR (11.47%) is better than 80.30% of its industry peers.
  • IR's Profit Margin has improved in the last couple of years.
  • The Operating Margin of IR (17.39%) is better than 85.61% of its industry peers.
  • In the last couple of years the Operating Margin of IR has grown nicely.
  • Looking at the Gross Margin, with a value of 41.26%, IR belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.

How do we evaluate the setup for NYSE:IR?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:IR has a 7 as its setup rating:

IR has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of IR for a complete fundamental analysis.

Our latest full technical report of IR contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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INGERSOLL-RAND INC

NYSE:IR (4/19/2024, 3:15:00 PM)

After market: 88.4 0 (0%)

88.4

-0.57 (-0.64%)

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