INGERSOLL-RAND INC (IR) Stock Fundamental Analysis
USA - NYSE:IR - US45687V1061 - Common Stock
78.47 USD
+1.25 (+1.62%)
78.47 USD
0 (0%)
IR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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.
In the past year IR had a positive cash flow from operations.
Of the past 5 years IR 4 years were profitable.
In the past 5 years IR always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of IR (2.87%) is comparable to the rest of the industry.
IR has a Return On Equity of 5.14%. This is in the lower half of the industry: IR underperforms 60.00% of its industry peers.
The Return On Invested Capital of IR (6.91%) is comparable to the rest of the industry.
IR had an Average Return On Invested Capital over the past 3 years of 6.33%. This is below the industry average of 10.01%.
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
With a Profit Margin value of 7.04%, IR perfoms like the industry average, outperforming 58.46% 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 88.46% of its industry peers.
IR's Operating Margin has improved in the last couple of years.
IR has a Gross Margin of 43.74%. This is in the better half of the industry: IR outperforms 80.00% 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
IR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for IR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, IR has more shares outstanding
IR has a worse debt/assets ratio than last year.
2.2 Solvency
IR has an Altman-Z score of 3.34. 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 3.34, IR is in line with its industry, outperforming 58.46% 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.
Looking at the Debt to FCF ratio, with a value of 3.68, IR is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
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 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.74
WACC9.32%
2.3 Liquidity
A Current Ratio of 2.29 indicates that IR has no problem at all paying its short term obligations.
IR has a Current ratio (2.29) which is comparable to the rest of the industry.
A Quick Ratio of 1.63 indicates that IR should not have too much problems paying its short term obligations.
The Quick ratio of IR (1.63) is better than 68.46% of its industry peers.
| 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.
The Revenue has been growing slightly by 4.67% in the past 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 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 Y6.14%
EPS Next 2Y8.01%
EPS Next 3Y8.31%
EPS Next 5Y10.24%
Revenue Next Year4.8%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
Revenue Next 5Y6.43%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
A Price/Earnings ratio of 24.52 indicates a rather expensive valuation of IR.
IR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.69, IR is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.45, the valuation of IR can be described as rather expensive.
IR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, IR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 20.45 |
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 | 24.02 | ||
| EV/EBITDA | 17.54 |
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)4
PEG (5Y)1.57
EPS Next 2Y8.01%
EPS Next 3Y8.31%
5. Dividend
5.1 Amount
IR has a yearly dividend return of 0.11%, which is pretty low.
Compared to an average industry Dividend Yield of 1.80, IR has a dividend in line with its industry peers.
With a Dividend Yield of 0.11, IR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
5.2 History
IR has been paying a dividend for at least 10 years, so it has 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 2Y8.01%
EPS Next 3Y8.31%
78.47
+1.25 (+1.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners102.9%
Inst Owner Change0.4%
Ins Owners0.17%
Ins Owner Change-0.68%
Market Cap31.19B
Analysts76.8
Price Target91.95 (17.18%)
Short Float %3.37%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.11% |
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)0%
PT rev (3m)0.59%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)1.36%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.52 | ||
| Fwd PE | 20.45 | ||
| P/S | 4.24 | ||
| P/FCF | 24.02 | ||
| P/OCF | 21.77 | ||
| P/B | 3.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.54 |
EPS(TTM)3.2
EY4.08%
EPS(NY)3.84
Fwd EY4.89%
FCF(TTM)3.27
FCFY4.16%
OCF(TTM)3.6
OCFY4.59%
SpS18.53
BVpS25.38
TBVpS-6.35
PEG (NY)4
PEG (5Y)1.57
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 | 3.34 |
F-Score8
WACC9.32%
ROIC/WACC0.74
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 Y6.14%
EPS Next 2Y8.01%
EPS Next 3Y8.31%
EPS Next 5Y10.24%
Revenue 1Y (TTM)4.67%
Revenue growth 3Y11.98%
Revenue growth 5Y29.1%
Sales Q2Q%4.58%
Revenue Next Year4.8%
Revenue Next 2Y5%
Revenue Next 3Y5.09%
Revenue Next 5Y6.43%
EBIT growth 1Y6.5%
EBIT growth 3Y32.7%
EBIT growth 5Y41.07%
EBIT Next Year17.42%
EBIT Next 3Y10.55%
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%