INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
NYSE:IR - New York Stock Exchange, Inc. - US45687V1061 - Common Stock - Currency: USD
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. IR has an average financial health and profitability rating. IR is quite expensive at the moment. It does show a decent growth rate.
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.
IR had positive earnings in 4 of the past 5 years.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.87%, IR perfoms like the industry average, outperforming 44.88% of the companies in the same industry.
IR has a Return On Equity of 5.14%. This is comparable to the rest of the industry: IR outperforms 40.16% of its industry peers.
IR has a Return On Invested Capital of 6.91%. This is comparable to the rest of the industry: IR outperforms 51.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.56%.
The last Return On Invested Capital (6.91%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.14% | ||
| ROIC | 6.91% |
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 7.04% is in line compared to the rest of the industry. IR outperforms 57.48% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
The Operating Margin of IR (19.82%) is better than 88.19% of its industry peers.
IR's Operating Margin has improved in the last couple of years.
IR has a better Gross Margin (43.74%) than 79.53% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.82% | ||
| PM (TTM) | 7.04% | ||
| GM | 43.74% |
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.
Compared to 1 year ago, IR has about the same amount of shares outstanding.
The number of shares outstanding for IR has been increased compared to 5 years ago.
IR has a worse debt/assets ratio than last year.
2.2 Solvency
IR has an Altman-Z score of 3.33. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
IR has a Altman-Z score (3.33) which is comparable to the rest of the industry.
IR has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as IR would need 3.68 years to pay back of all of its debts.
IR has a Debt to FCF ratio (3.68) which is comparable to the rest of the industry.
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 | 3.68 | ||
| Altman-Z | 3.33 |
ROIC/WACC0.71
WACC9.74%
2.3 Liquidity
IR has a Current Ratio of 2.29. This indicates that IR is financially healthy and has no problem in meeting its short term obligations.
IR has a Current ratio (2.29) which is in line with its industry peers.
A Quick Ratio of 1.63 indicates that IR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.63, IR is doing good in the industry, outperforming 68.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
IR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.23%.
IR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.65% yearly.
Looking at the last year, IR shows a small growth in Revenue. The Revenue has grown by 4.67% 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)-1.23%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-3.61%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
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 12.55% yearly.
Based on estimates for the next years, IR will show a small growth in Revenue. The Revenue will grow by 8.00% on average per year.
EPS Next Y4.71%
EPS Next 2Y7.25%
EPS Next 3Y8.03%
EPS Next 5Y12.55%
Revenue Next Year3.63%
Revenue Next 2Y4.28%
Revenue Next 3Y4.7%
Revenue Next 5Y8%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 23.89, which indicates a rather expensive current valuation of IR.
The rest of the industry has a similar Price/Earnings ratio as IR.
IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
The Price/Forward Earnings ratio is 20.20, which indicates a rather expensive current valuation of IR.
IR's Price/Forward Earnings is on the same level as the industry average.
IR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 33.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 20.2 |
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 | 23.76 | ||
| EV/EBITDA | 17.5 |
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)5.07
PEG (5Y)1.53
EPS Next 2Y7.25%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
With a yearly dividend of 0.10%, IR is not a good candidate for dividend investing.
IR's Dividend Yield is comparable with the industry average which is at 1.91.
With a Dividend Yield of 0.10, IR pays less dividend than the S&P500 average, which is at 2.39.
| 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
IR pays out 6.23% of its income as dividend. This is a sustainable payout ratio.
DP6.23%
EPS Next 2Y7.25%
EPS Next 3Y8.03%
76.45
+0.56 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change0.22%
Ins Owners0.17%
Ins Owner Change1.33%
Market Cap30.84B
Analysts77.6
Price Target92.61 (21.14%)
Short Float %3.45%
Short Ratio5.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.1% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP6.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.64%
Min EPS beat(2)-4.75%
Max EPS beat(2)-2.53%
EPS beat(4)1
Avg EPS beat(4)-2.56%
Min EPS beat(4)-4.75%
Max EPS beat(4)0.25%
EPS beat(8)5
Avg EPS beat(8)2.46%
EPS beat(12)9
Avg EPS beat(12)5.38%
EPS beat(16)13
Avg EPS beat(16)6.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-3.44%
Max Revenue beat(2)-0.79%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)-0.79%
Revenue beat(8)1
Avg Revenue beat(8)-2.37%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)8
Avg Revenue beat(16)-0.35%
PT rev (1m)1.31%
PT rev (3m)0.67%
EPS NQ rev (1m)-0.34%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 20.2 | ||
| P/S | 4.19 | ||
| P/FCF | 23.76 | ||
| P/OCF | 21.53 | ||
| P/B | 3.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.5 |
EPS(TTM)3.2
EY4.19%
EPS(NY)3.78
Fwd EY4.95%
FCF(TTM)3.22
FCFY4.21%
OCF(TTM)3.55
OCFY4.64%
SpS18.25
BVpS25
TBVpS-6.26
PEG (NY)5.07
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 5.14% | ||
| ROCE | 9% | ||
| ROIC | 6.91% | ||
| ROICexc | 7.51% | ||
| ROICexgc | 48.63% | ||
| OM | 19.82% | ||
| PM (TTM) | 7.04% | ||
| GM | 43.74% | ||
| FCFM | 17.63% |
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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 2.45 | ||
| Cap/Depr | 27.44% | ||
| Cap/Sales | 1.82% | ||
| Interest Coverage | 5.29 | ||
| Cash Conversion | 73.52% | ||
| Profit Quality | 250.44% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 3.33 |
F-Score8
WACC9.74%
ROIC/WACC0.71
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)-1.23%
EPS 3Y15.06%
EPS 5Y15.65%
EPS Q2Q%-3.61%
EPS Next Y4.71%
EPS Next 2Y7.25%
EPS Next 3Y8.03%
EPS Next 5Y12.55%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
Revenue Next Year3.63%
Revenue Next 2Y4.28%
Revenue Next 3Y4.7%
Revenue Next 5Y8%
EBIT growth 1Y6.5%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year16.88%
EBIT Next 3Y10.46%
EBIT Next 5Y12.23%
FCF growth 1Y40.3%
FCF growth 3Y31.28%
FCF growth 5Y32.51%
OCF growth 1Y39.34%
OCF growth 3Y31.41%
OCF growth 5Y32.4%