INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
NYSE:IR - US45687V1061 - Common Stock
77.94 USD
-1.49 (-1.88%)
77.94 USD
0 (0%)
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. IR has an average financial health and profitability rating. 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.
IR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
IR has a Return On Assets of 2.87%. This is comparable to the rest of the industry: IR outperforms 44.53% of its industry peers.
IR has a worse Return On Equity (5.14%) than 60.94% of its industry peers.
With a Return On Invested Capital value of 6.91%, IR perfoms like the industry average, outperforming 52.34% 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 9.99%.
The 3 year average ROIC (6.33%) for IR is below the current ROIC(6.91%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 7.04%, IR is in line with its industry, outperforming 57.03% of the companies in the same industry.
IR's Profit Margin has improved in the last couple of years.
IR has a Operating Margin of 19.82%. This is amongst the best in the industry. IR outperforms 88.28% 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 79.69% of its industry peers.
IR's Gross Margin has improved in the last couple of years.
| 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
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.
IR has a worse debt/assets ratio than last year.
2.2 Solvency
IR has an Altman-Z score of 3.41. This indicates that IR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.41, IR is in line with its industry, outperforming 58.59% of the companies in the same industry.
The Debt to FCF ratio of IR is 3.68, which is a good value as it means it would take IR, 3.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IR (3.68) is better than 60.16% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that IR is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.47, IR perfoms like the industry average, outperforming 46.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.68
WACC10.21%
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's Current ratio of 2.29 is in line compared to the rest of the industry. IR outperforms 58.59% of 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 69.53% 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%.
The Earnings Per Share has been growing by 15.65% on average over the past years. This is quite good.
IR shows a small growth in Revenue. In the last year, the Revenue has grown by 4.67%.
The Revenue has been growing by 29.10% on average over the past years. This is a very strong growth!
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 10.24% yearly.
Based on estimates for the next years, IR will show a small growth in Revenue. The Revenue will grow by 6.43% on average per year.
EPS Next Y6.16%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
EPS Next 5Y10.24%
Revenue Next Year4.92%
Revenue Next 2Y5.13%
Revenue Next 3Y5.16%
Revenue Next 5Y6.43%
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.
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
IR is valuated rather expensively with a Price/Earnings ratio of 24.36.
Compared to the rest of the industry, the Price/Earnings ratio of IR is on the same level as its industry peers.
IR's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.13.
A Price/Forward Earnings ratio of 20.32 indicates a rather expensive valuation of IR.
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 22.76. IR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IR.
The rest of the industry has a similar Price/Free Cash Flow ratio as IR.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.86 | ||
| EV/EBITDA | 17.99 |
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)3.95
PEG (5Y)1.56
EPS Next 2Y7.97%
EPS Next 3Y8.26%
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 1.78.
With a Dividend Yield of 0.10, IR pays less dividend than the S&P500 average, which is at 2.32.
| 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
6.23% of the earnings are spent on dividend by IR. This is a low number and sustainable payout ratio.
DP6.23%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
77.94
-1.49 (-1.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners100.59%
Inst Owner Change-3.83%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap30.98B
Analysts77.6
Price Target92.17 (18.26%)
Short Float %3.35%
Short Ratio4.59
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)-1.86%
PT rev (3m)0.19%
EPS NQ rev (1m)-1.4%
EPS NQ rev (3m)-2.73%
EPS NY rev (1m)1.38%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.36 | ||
| Fwd PE | 20.32 | ||
| P/S | 4.21 | ||
| P/FCF | 23.86 | ||
| P/OCF | 21.63 | ||
| P/B | 3.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.99 |
EPS(TTM)3.2
EY4.11%
EPS(NY)3.84
Fwd EY4.92%
FCF(TTM)3.27
FCFY4.19%
OCF(TTM)3.6
OCFY4.62%
SpS18.53
BVpS25.38
TBVpS-6.35
PEG (NY)3.95
PEG (5Y)1.56
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 | 3.41 |
F-Score8
WACC10.21%
ROIC/WACC0.68
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 Y6.16%
EPS Next 2Y7.97%
EPS Next 3Y8.26%
EPS Next 5Y10.24%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
Revenue Next Year4.92%
Revenue Next 2Y5.13%
Revenue Next 3Y5.16%
Revenue Next 5Y6.43%
EBIT growth 1Y6.5%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year16.88%
EBIT Next 3Y10.46%
EBIT Next 5Y10.72%
FCF growth 1Y40.3%
FCF growth 3Y31.28%
FCF growth 5Y32.51%
OCF growth 1Y39.34%
OCF growth 3Y31.41%
OCF growth 5Y32.4%