INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
77.33 USD
+0.08 (+0.1%)
77.33 USD
0 (0%)
Overall IR gets a fundamental rating of 5 out of 10. We evaluated IR against 130 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.
IR had a positive operating cash flow in the past year.
Of the past 5 years IR 4 years were profitable.
Each year in the past 5 years IR had a positive operating cash flow.
1.2 Ratios
IR's Return On Assets of 2.97% is in line compared to the rest of the industry. IR outperforms 44.62% of its industry peers.
With a Return On Equity value of 5.34%, IR is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
IR has a Return On Invested Capital (6.85%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for IR is below the industry average of 10.27%.
The last Return On Invested Capital (6.85%) for IR is above the 3 year average (6.33%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROIC | 6.85% |
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 7.25%, IR is in line with its industry, outperforming 59.23% of the companies in the same industry.
In the last couple of years the Profit Margin of IR has grown nicely.
IR has a Operating Margin of 19.44%. This is amongst the best in the industry. IR outperforms 87.69% of its industry peers.
In the last couple of years the Operating Margin of IR has grown nicely.
IR has a better Gross Margin (43.72%) than 80.00% of its industry peers.
IR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.44% | ||
| 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
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.
The debt/assets ratio for IR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.32 indicates that IR is not in any danger for bankruptcy at the moment.
IR has a Altman-Z score of 3.32. This is comparable to the rest of the industry: IR outperforms 60.00% of its industry peers.
IR has a debt to FCF ratio of 3.83. This is a good value and a sign of high solvency as IR would need 3.83 years to pay back of all of its debts.
IR has a better Debt to FCF ratio (3.83) 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 46.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.83 | ||
| Altman-Z | 3.32 |
ROIC/WACC0.73
WACC9.44%
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.
IR has a Quick Ratio of 1.51. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.51, IR is doing good in the industry, outperforming 63.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
IR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.72%.
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.
The Revenue has been growing slightly by 4.20% in the past year.
IR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 29.10% yearly.
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 Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
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
With a Price/Earnings ratio of 24.02, IR is valued on the expensive side.
IR's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of IR to the average of the S&P500 Index (26.28), we can say IR is valued inline with the index average.
The Price/Forward Earnings ratio is 20.49, which indicates a rather expensive current 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.
IR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.49 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.6 | ||
| EV/EBITDA | 17.7 |
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)5.82
PEG (5Y)1.53
EPS Next 2Y7.09%
EPS Next 3Y8.02%
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 1.85, IR has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, IR's dividend is way lower than the S&P500 average.
| 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 2Y7.09%
EPS Next 3Y8.02%
77.33
+0.08 (+0.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change-1.65%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap30.73B
Revenue(TTM)7.46B
Net Income(TTM)540.90M
Analysts76.8
Price Target92.97 (20.23%)
Short Float %3.93%
Short Ratio4.94
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)1.11%
PT rev (3m)0.39%
EPS NQ rev (1m)-8.95%
EPS NQ rev (3m)-3.66%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-0.56%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)1.35%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.49 | ||
| P/S | 4.12 | ||
| P/FCF | 24.6 | ||
| P/OCF | 22.22 | ||
| P/B | 3.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.7 |
EPS(TTM)3.22
EY4.16%
EPS(NY)3.77
Fwd EY4.88%
FCF(TTM)3.14
FCFY4.07%
OCF(TTM)3.48
OCFY4.5%
SpS18.77
BVpS25.47
TBVpS-6.57
PEG (NY)5.82
PEG (5Y)1.53
Graham Number42.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 5.34% | ||
| ROCE | 8.92% | ||
| ROIC | 6.85% | ||
| ROICexc | 7.38% | ||
| ROICexgc | 47.3% | ||
| OM | 19.44% | ||
| 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 | 2.47 | ||
| Cap/Depr | 27.3% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.33% | ||
| Profit Quality | 231% | ||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.32 |
F-Score5
WACC9.44%
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 Y4.12%
EPS Next 2Y7.09%
EPS Next 3Y8.02%
EPS Next 5Y10.57%
Revenue 1Y (TTM)4.2%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%5.05%
Revenue Next Year4.69%
Revenue Next 2Y4.83%
Revenue Next 3Y5.12%
Revenue Next 5Y6.57%
EBIT growth 1Y1.83%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year17.42%
EBIT Next 3Y10.55%
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 3 / 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 6 / 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 4.12% 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%.