Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 132 industry peers in the Machinery industry. While IR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, IR is valued expensive at the moment.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year IR was profitable.
IR had a positive operating cash flow in the past year.
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 (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.
Looking at the Return On Invested Capital, with a value of 6.95%, IR is in line with its industry, outperforming 53.03% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for IR is below the industry average of 10.20%.
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

IR's Profit Margin of 7.25% is fine compared to the rest of the industry. IR outperforms 63.64% of its industry peers.
IR's Profit Margin has improved in the last couple of years.
IR's Operating Margin of 19.75% is amongst the best of the industry. IR outperforms 88.64% 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 43.72%, IR belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
IR's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 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

IR has an Altman-Z score of 3.65. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
IR has a better Altman-Z score (3.65) than 61.36% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 3.83, IR is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
IR has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: IR outperforms 48.48% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	3.83
Altman-Z	3.65

ROIC/WACC0.73

WACC9.52%

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 in line with its industry peers.
A Quick Ratio of 1.51 indicates that IR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, IR is in the better half of the industry, outperforming 65.15% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.16
Quick Ratio	1.51

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.
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

Based on estimates for the next years, IR will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.57% on average per year.
The Revenue is expected to grow by 6.58% on average over the next years.

EPS Next Y2.85%

EPS Next 2Y5.6%

EPS Next 3Y7.1%

EPS Next 5Y10.57%

Revenue Next Year4.78%

Revenue Next 2Y4.67%

Revenue Next 3Y4.86%

Revenue Next 5Y6.58%

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.

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4. Valuation

4.1 Price/Earnings Ratio

IR is valuated quite expensively with a Price/Earnings ratio of 26.74.
The rest of the industry has a similar Price/Earnings ratio as IR.
The average S&P500 Price/Earnings ratio is at 28.30. IR is around the same levels.
A Price/Forward Earnings ratio of 23.47 indicates a rather expensive valuation of IR.
IR's Price/Forward Earnings is on the same level as the industry average.
IR is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	26.74
Fwd PE	23.47

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, IR is valued a bit more expensive than 60.61% of the companies in the same industry.
IR's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	27.22
EV/EBITDA	19.74

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of IR may justify a higher PE ratio.

PEG (NY)9.39

PEG (5Y)1.71

EPS Next 2Y5.6%

EPS Next 3Y7.1%

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5. Dividend

5.1 Amount

IR has a yearly dividend return of 0.09%, which is pretty low.
IR's Dividend Yield is comparable with the industry average which is at 1.02.
With a Dividend Yield of 0.09, IR pays less dividend than the S&P500 average, which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	0.09%

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 2Y5.6%

EPS Next 3Y7.1%

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INGERSOLL-RAND INC / IR FAQ

What is the fundamental rating for IR stock?

ChartMill assigns a fundamental rating of 5 / 10 to IR.

Can you provide the valuation status for INGERSOLL-RAND INC?

ChartMill assigns a valuation rating of 2 / 10 to INGERSOLL-RAND INC (IR). This can be considered as Overvalued.

How profitable is INGERSOLL-RAND INC (IR) stock?

INGERSOLL-RAND INC (IR) has a profitability rating of 7 / 10.

Can you provide the PE and PB ratios for IR stock?

The Price/Earnings (PE) ratio for INGERSOLL-RAND INC (IR) is 26.74 and the Price/Book (PB) ratio is 3.36.

What is the earnings growth outlook for INGERSOLL-RAND INC?

The Earnings per Share (EPS) of INGERSOLL-RAND INC (IR) is expected to grow by 2.85% in the next year.