INGERSOLL-RAND INC (IR)
US45687V1061 - Common Stock
IR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making IR a very profitable company, without any liquidiy or solvency issues. IR is valued quite expensively, but it does show have an excellent growth rating. This makes IR very considerable for growth and quality investing!
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.
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
IR has a Return On Assets (5.00%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 7.96%, IR is in line with its industry, outperforming 51.94% of the companies in the same industry.
IR's Return On Invested Capital of 7.08% is in line compared to the rest of the industry. IR outperforms 55.81% of its industry peers.
IR had an Average Return On Invested Capital over the past 3 years of 5.30%. This is significantly below the industry average of 10.74%.
The 3 year average ROIC (5.30%) for IR is below the current ROIC(7.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 7.96% | ||
| ROIC | 7.08% |
ROA(3y)4.27%
ROA(5y)3.21%
ROE(3y)6.93%
ROE(5y)5.79%
ROIC(3y)5.3%
ROIC(5y)4.48%
1.3 Margins
The Profit Margin of IR (11.32%) is better than 79.07% of its industry peers.
In the last couple of years the Profit Margin of IR has grown nicely.
Looking at the Operating Margin, with a value of 18.06%, IR belongs to the top of the industry, outperforming 85.27% of the companies in the same industry.
In the last couple of years the Operating Margin of IR has remained more or less at the same level.
IR has a better Gross Margin (41.92%) than 82.95% of its industry peers.
In the last couple of years the Gross Margin of IR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.06% | ||
| PM (TTM) | 11.32% | ||
| GM | 41.92% |
OM growth 3Y37.76%
OM growth 5Y1.4%
PM growth 3YN/A
PM growth 5Y2.49%
GM growth 3Y5.83%
GM growth 5Y2.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IR is destroying value.
The number of shares outstanding for IR has been reduced compared to 1 year ago.
The number of shares outstanding for IR has been increased compared to 5 years ago.
IR has a better debt/assets ratio than last year.
2.2 Solvency
IR has an Altman-Z score of 4.88. 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 4.88, IR is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
The Debt to FCF ratio of IR is 2.14, which is a good value as it means it would take IR, 2.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of IR (2.14) is better than 77.52% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that IR is not too dependend on debt financing.
IR has a Debt to Equity ratio of 0.28. This is in the better half of the industry: IR outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.14 | ||
| Altman-Z | 4.88 |
ROIC/WACC0.77
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.22 indicates that IR has no problem at all paying its short term obligations.
The Current ratio of IR (2.22) is comparable to the rest of the industry.
IR has a Quick Ratio of 1.67. This is a normal value and indicates that IR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of IR (1.67) is better than 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.89% over the past year.
The Earnings Per Share has been growing by 9.50% on average over the past years. This is quite good.
IR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.22%.
The Revenue has been growing by 20.65% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)24.89%
EPS 3Y25.15%
EPS 5Y9.5%
EPS growth Q2Q19.44%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y20.06%
Revenue growth 5Y20.65%
Revenue growth Q2Q12.18%
3.2 Future
Based on estimates for the next years, IR will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.48% on average per year.
IR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.26% yearly.
EPS Next Y11.83%
EPS Next 2Y11.2%
EPS Next 3Y10.92%
EPS Next 5Y12.48%
Revenue Next Year6.88%
Revenue Next 2Y6.4%
Revenue Next 3Y6.32%
Revenue Next 5Y7.26%
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 accelerating.
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
Based on the Price/Earnings ratio of 31.59, the valuation of IR can be described as expensive.
IR's Price/Earnings ratio is a bit more expensive when compared to the industry. IR is more expensive than 63.57% of the companies in the same industry.
IR is valuated rather expensively when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.25 indicates a quite expensive valuation of IR.
IR's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. IR is more expensive than 60.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.49. IR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 28.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, IR is valued a bit more expensive than the industry average as 68.22% of the companies are valued more cheaply.
IR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.66 | ||
| EV/EBITDA | 22.5 |
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)2.67
PEG (5Y)3.32
EPS Next 2Y11.2%
EPS Next 3Y10.92%
5. Dividend
5.1 Amount
IR has a yearly dividend return of 0.09%, which is pretty low.
IR's Dividend Yield is comparable with the industry average which is at 1.72.
With a Dividend Yield of 0.09, IR pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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
4.16% of the earnings are spent on dividend by IR. This is a low number and sustainable payout ratio.
DP4.16%
EPS Next 2Y11.2%
EPS Next 3Y10.92%
INGERSOLL-RAND INC
NYSE:IR (4/26/2024, 7:04:00 PM)
After market: 93.5 0 (0%)93.5
+1.47 (+1.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(4)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.59 | ||
| Fwd PE | 28.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.67
PEG (5Y)3.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5% | ||
| ROE | 7.96% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.06% | ||
| PM (TTM) | 11.32% | ||
| GM | 41.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)24.89%
EPS 3Y25.15%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.22%
Revenue growth 3Y20.06%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y