INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
NYSE:IR - New York Stock Exchange, Inc. - US45687V1061 - Common Stock - Currency: USD
Overall IR gets a fundamental rating of 6 out of 10. We evaluated IR against 128 industry peers in the Machinery industry. While IR has a great profitability rating, there are some minor concerns on its financial health. 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.
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
Looking at the Return On Assets, with a value of 4.48%, IR is in line with its industry, outperforming 50.78% of the companies in the same industry.
The Return On Equity of IR (7.85%) is comparable to the rest of the industry.
The Return On Invested Capital of IR (6.78%) is comparable to the rest of the industry.
IR had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.31%.
The last Return On Invested Capital (6.78%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 7.85% | ||
| ROIC | 6.78% |
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 11.30% is fine compared to the rest of the industry. IR outperforms 78.13% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a better Operating Margin (20.07%) than 89.06% of its industry peers.
IR's Operating Margin has improved in the last couple of years.
The Gross Margin of IR (43.80%) is better than 81.25% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.07% | ||
| PM (TTM) | 11.3% | ||
| GM | 43.8% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IR 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.
The debt/assets ratio for IR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.57 indicates that IR is not in any danger for bankruptcy at the moment.
IR's Altman-Z score of 3.57 is in line compared to the rest of the industry. IR outperforms 58.59% of its industry peers.
IR has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as IR would need 3.48 years to pay back of all of its debts.
IR's Debt to FCF ratio of 3.48 is fine compared to the rest of the industry. IR outperforms 63.28% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that IR is not too dependend on debt financing.
IR has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.65
WACC10.35%
2.3 Liquidity
A Current Ratio of 2.38 indicates that IR has no problem at all paying its short term obligations.
IR's Current ratio of 2.38 is fine compared to the rest of the industry. IR outperforms 63.28% of its industry peers.
IR has a Quick Ratio of 1.76. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
IR has a better Quick ratio (1.76) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.76 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.53% over the past year.
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 5.27%.
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)4.53%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%2.8%
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 12.87% yearly.
IR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.30% yearly.
EPS Next Y4.72%
EPS Next 2Y7.04%
EPS Next 3Y8.04%
EPS Next 5Y12.87%
Revenue Next Year3.54%
Revenue Next 2Y4.19%
Revenue Next 3Y4.64%
Revenue Next 5Y8.3%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
A Price/Earnings ratio of 25.45 indicates a quite expensive valuation of IR.
IR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, IR is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.81, the valuation of IR can be described as rather expensive.
IR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of IR to the average of the S&P500 Index (22.43), we can say IR is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of IR indicates a slightly more expensive valuation: IR is more expensive than 60.94% of the companies listed in the same industry.
IR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.19 | ||
| EV/EBITDA | 18.81 |
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)5.39
PEG (5Y)1.63
EPS Next 2Y7.04%
EPS Next 3Y8.04%
5. Dividend
5.1 Amount
IR has a yearly dividend return of 0.10%, which is pretty low.
Compared to an average industry Dividend Yield of 1.83, 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 2.36.
| 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.
IR has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
IR pays out 3.93% of its income as dividend. This is a sustainable payout ratio.
DP3.93%
EPS Next 2Y7.04%
EPS Next 3Y8.04%
NYSE:IR (5/21/2025, 1:13:09 PM)
82.21
-0.71 (-0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.07%
Inst Owner Change-0.2%
Ins Owners0.2%
Ins Owner Change7.02%
Market Cap33.17B
Analysts77.6
Price Target92 (11.91%)
Short Float %2.33%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP3.93%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.98%
Min EPS beat(2)-4.75%
Max EPS beat(2)-3.21%
EPS beat(4)2
Avg EPS beat(4)-1.17%
Min EPS beat(4)-4.75%
Max EPS beat(4)3.04%
EPS beat(8)6
Avg EPS beat(8)4.06%
EPS beat(12)10
Avg EPS beat(12)5.65%
EPS beat(16)14
Avg EPS beat(16)6.75%
Revenue beat(2)0
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-3.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.26%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)-2.68%
Revenue beat(8)2
Avg Revenue beat(8)-1.82%
Revenue beat(12)6
Avg Revenue beat(12)-0.28%
Revenue beat(16)9
Avg Revenue beat(16)-0.14%
PT rev (1m)-8.77%
PT rev (3m)-14.92%
EPS NQ rev (1m)-4.3%
EPS NQ rev (3m)-6.75%
EPS NY rev (1m)-1.62%
EPS NY rev (3m)-3.76%
Revenue NQ rev (1m)-2.06%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 21.81 | ||
| P/S | 4.55 | ||
| P/FCF | 24.19 | ||
| P/OCF | 22.24 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.81 |
EPS(TTM)3.23
EY3.93%
EPS(NY)3.77
Fwd EY4.59%
FCF(TTM)3.4
FCFY4.13%
OCF(TTM)3.7
OCFY4.5%
SpS18.05
BVpS25.99
TBVpS-5.49
PEG (NY)5.39
PEG (5Y)1.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.48% | ||
| ROE | 7.85% | ||
| ROCE | 8.83% | ||
| ROIC | 6.78% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 50.08% | ||
| OM | 20.07% | ||
| PM (TTM) | 11.3% | ||
| GM | 43.8% | ||
| FCFM | 18.83% |
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%
ROICexcg growth 3Y22.68%
ROICexcg 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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 24.86% | ||
| Cap/Sales | 1.65% | ||
| Interest Coverage | 7.94 | ||
| Cash Conversion | 76.64% | ||
| Profit Quality | 166.61% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.76 | ||
| Altman-Z | 3.57 |
F-Score6
WACC10.35%
ROIC/WACC0.65
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)4.53%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-7.69%
EPS Next Y4.72%
EPS Next 2Y7.04%
EPS Next 3Y8.04%
EPS Next 5Y12.87%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%2.8%
Revenue Next Year3.54%
Revenue Next 2Y4.19%
Revenue Next 3Y4.64%
Revenue Next 5Y8.3%
EBIT growth 1Y12.43%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year20.58%
EBIT Next 3Y11.6%
EBIT Next 5Y12.69%
FCF growth 1Y54.83%
FCF growth 3Y31.28%
FCF growth 5Y32.51%
OCF growth 1Y51.48%
OCF growth 3Y31.41%
OCF growth 5Y32.4%