INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:IR - US45687V1061 - Common Stock
79.18 USD
+0.8 (+1.02%)
Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 130 industry peers in the Machinery industry. While IR has a great profitability rating, there are some minor concerns on its financial health. IR is valied quite expensively at the moment, while it does show a decent growth rate.
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.
IR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.97%, IR perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.34%, IR is in line with its industry, outperforming 43.08% of the companies in the same industry.
With a Return On Invested Capital value of 6.95%, IR perfoms like the industry average, outperforming 53.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.46%.
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 has a better Profit Margin (7.25%) than 61.54% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a better Operating Margin (19.75%) than 88.46% 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 is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of IR has grown nicely.
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IR is destroying value.
IR has about the same amout of shares outstanding than it did 1 year ago.
IR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for IR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.34 indicates that IR is not in any danger for bankruptcy at the moment.
IR has a Altman-Z score (3.34) 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.
The Debt to FCF ratio of IR (3.83) is better 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.
Looking at the Debt to Equity ratio, with a value of 0.47, IR is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.73
WACC9.47%
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.
Looking at the Current ratio, with a value of 2.16, IR is in line with its industry, outperforming 56.92% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that IR should not have too much problems paying its short term obligations.
The Quick ratio of IR (1.51) is better than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for IR have decreased by -2.72% in the last 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 4.20%.
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 Y2.95%
EPS Next 2Y5.99%
EPS Next 3Y7.33%
EPS Next 5Y10.57%
Revenue Next Year4.76%
Revenue Next 2Y4.65%
Revenue Next 3Y4.91%
Revenue Next 5Y6.57%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
A Price/Earnings ratio of 24.59 indicates a rather expensive valuation of IR.
The rest of the industry has a similar Price/Earnings ratio as IR.
Compared to an average S&P500 Price/Earnings ratio of 26.29, IR is valued at the same level.
The Price/Forward Earnings ratio is 21.42, which indicates a rather expensive current valuation of IR.
The rest of the industry has a similar Price/Forward Earnings ratio as IR.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.51, IR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 21.42 |
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 | 25.04 | ||
| EV/EBITDA | 17.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IR does not grow enough to justify the current Price/Earnings ratio.
IR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)8.33
PEG (5Y)1.57
EPS Next 2Y5.99%
EPS Next 3Y7.33%
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 1.84, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
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 2Y5.99%
EPS Next 3Y7.33%
NYSE:IR (12/10/2025, 11:36:44 AM)
79.18
+0.8 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.78%
Inst Owner Change6.62%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap31.28B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target89.4 (12.91%)
Short Float %4.47%
Short Ratio5.45
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)-3.84%
PT rev (3m)-2.77%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-9.37%
EPS NY rev (1m)-1.13%
EPS NY rev (3m)-3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.76%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.59 | ||
| Fwd PE | 21.42 | ||
| P/S | 4.19 | ||
| P/FCF | 25.04 | ||
| P/OCF | 22.62 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.63 |
EPS(TTM)3.22
EY4.07%
EPS(NY)3.7
Fwd EY4.67%
FCF(TTM)3.16
FCFY3.99%
OCF(TTM)3.5
OCFY4.42%
SpS18.88
BVpS25.62
TBVpS-6.61
PEG (NY)8.33
PEG (5Y)1.57
Graham Number43.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROCE | 9.06% | ||
| ROIC | 6.95% | ||
| ROICexc | 7.5% | ||
| ROICexgc | 48.05% | ||
| OM | 19.75% | ||
| 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 | 2.44 | ||
| Cap/Depr | 27.3% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 5.47 | ||
| Cash Conversion | 70.49% | ||
| Profit Quality | 231% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.34 |
F-Score5
WACC9.47%
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 Y2.95%
EPS Next 2Y5.99%
EPS Next 3Y7.33%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.76%
Revenue Next 2Y4.65%
Revenue Next 3Y4.91%
Revenue Next 5Y6.57%
EBIT growth 1Y3.45%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year14.81%
EBIT Next 3Y9.91%
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 7 / 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 2.95% 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%.