INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
75.47 USD
-0.73 (-0.96%)
75.47 USD
0 (0%)
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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
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.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.97%, IR perfoms like the industry average, outperforming 44.62% of the companies in the same industry.
IR has a worse Return On Equity (5.34%) than 60.00% of its industry peers.
IR's Return On Invested Capital of 6.85% is in line compared to the rest of the industry. IR outperforms 51.54% of 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 10.28%.
The last Return On Invested Capital (6.85%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| 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.
With an excellent Operating Margin value of 19.44%, IR belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
In the last couple of years the Operating Margin of IR has grown nicely.
The Gross Margin of IR (43.72%) is better than 80.00% of its industry peers.
IR's Gross Margin has improved in the last couple of years.
| 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.
IR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for IR has been increased compared to 5 years ago.
Compared to 1 year ago, IR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.29 indicates that IR is not in any danger for bankruptcy at the moment.
IR has a Altman-Z score (3.29) which is comparable to the rest of the 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 better Debt to FCF ratio (3.83) than 62.31% 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 | 3.29 |
ROIC/WACC0.73
WACC9.4%
2.3 Liquidity
A Current Ratio of 2.16 indicates that IR has no problem at all paying its short term obligations.
With a Current ratio value of 2.16, IR perfoms like the industry average, outperforming 56.15% of the companies in the same industry.
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 63.08% of the companies in the same industry.
| 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%.
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.
Looking at the last year, IR shows a small growth in Revenue. The Revenue has grown by 4.20% in the last year.
Measured over the past years, IR shows a very strong growth in Revenue. The Revenue has been growing by 29.10% on average per year.
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
The Earnings Per Share is expected to grow by 10.57% on average over the next years. This is quite good.
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.
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 23.44, which indicates a rather expensive current valuation of IR.
Compared to the rest of the industry, the Price/Earnings ratio of IR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.89, IR is valued at the same level.
IR is valuated rather expensively with a Price/Forward Earnings ratio of 20.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 34.59. IR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20 |
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 | 24.01 | ||
| EV/EBITDA | 17.48 |
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)5.68
PEG (5Y)1.5
EPS Next 2Y7.09%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
IR has a yearly dividend return of 0.10%, which is pretty low.
IR's Dividend Yield is comparable with the industry average which is at 1.86.
Compared to an average S&P500 Dividend Yield of 2.36, IR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
5.2 History
IR has been paying a dividend for at least 10 years, so it has 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%
75.47
-0.73 (-0.96%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change-1.65%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap30.00B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target92.97 (23.19%)
Short Float %3.93%
Short Ratio4.94
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)-8.95%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 20 | ||
| P/S | 4.02 | ||
| P/FCF | 24.01 | ||
| P/OCF | 21.69 | ||
| P/B | 2.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.48 |
EPS(TTM)3.22
EY4.27%
EPS(NY)3.77
Fwd EY5%
FCF(TTM)3.14
FCFY4.17%
OCF(TTM)3.48
OCFY4.61%
SpS18.77
BVpS25.47
TBVpS-6.57
PEG (NY)5.68
PEG (5Y)1.5
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 | 3.29 |
F-Score5
WACC9.4%
ROIC/WACC0.73
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 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 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%.