NYSE:IR

Stock Analysis Report

Executive Summary

Ingersoll Rand Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Ingersoll Rand's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.0%

IR

9.2%

US Machinery

7.2%

US Market


1 Year Return

-14.7%

IR

-22.1%

US Machinery

-10.4%

US Market

Return vs Industry: IR exceeded the US Machinery industry which returned -24.4% over the past year.

Return vs Market: IR underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

IRIndustryMarket
7 Day6.0%9.2%7.2%
30 Day-27.6%-19.4%-12.6%
90 Day-35.3%-29.0%-19.4%
1 Year-14.7%-14.7%-19.8%-22.1%-8.5%-10.4%
3 Yearn/a0.6%-6.7%15.8%8.3%
5 Yearn/a22.3%6.8%35.8%21.0%

Price Volatility Vs. Market

How volatile is Ingersoll Rand's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ingersoll Rand undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IR ($22.63) is trading below our estimate of fair value ($120.08)

Significantly Below Fair Value: IR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IR is poor value based on its PE Ratio (28.9x) compared to the Machinery industry average (15x).

PE vs Market: IR is poor value based on its PE Ratio (28.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: IR is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: IR is overvalued based on its PB Ratio (2.5x) compared to the US Machinery industry average (1.5x).


Next Steps

Future Growth

How is Ingersoll Rand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

50.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IR's forecast earnings growth (50.6% per year) is above the savings rate (1.7%).

Earnings vs Market: IR's earnings (50.6% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IR's revenue (31.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: IR's revenue (31.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IR's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has Ingersoll Rand performed over the past 5 years?

65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IR has a large one-off loss of $65.9M impacting its December 31 2019 financial results.

Growing Profit Margin: IR's current net profit margins (6.5%) are lower than last year (10%).


Past Earnings Growth Analysis

Earnings Trend: IR has become profitable over the past 5 years, growing earnings by 65.9% per year.

Accelerating Growth: IR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IR had negative earnings growth (-40.9%) over the past year, making it difficult to compare to the Machinery industry average (-2%).


Return on Equity

High ROE: IR's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Ingersoll Rand's financial position?


Financial Position Analysis

Short Term Liabilities: IR's short term assets ($1.5B) exceed its short term liabilities ($574.6M).

Long Term Liabilities: IR's short term assets ($1.5B) do not cover its long term liabilities ($2.2B).


Debt to Equity History and Analysis

Debt Level: IR's debt to equity ratio (85.9%) is considered high.

Reducing Debt: IR's debt to equity ratio has reduced from 240.4% to 85.9% over the past 5 years.

Debt Coverage: IR's debt is well covered by operating cash flow (21.4%).

Interest Coverage: IR's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

Inventory Level: IR has a low level of unsold assets or inventory.

Debt Coverage by Assets: IR's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Ingersoll Rand's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Vicente Reynal (44yo)

4.17s

Tenure

US$5,705,348

Compensation

Mr. Vicente Reynal has been Chief Executive Officer at Ingersoll Rand Inc. (formerly known as Gardner Denver Holdings, Inc.) since January 1, 2016 and serves as its Director since February 2017. Mr. Reynal ...


CEO Compensation Analysis

Compensation vs Market: Vicente's total compensation ($USD5.71M) is about average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Vicente's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vicente Reynal
CEO, President & Director4.17yrsUS$5.71m0.12% $6.0m
Andrew Schiesl
Senior VP6.25yrsUS$1.42m0.0058% $284.1k
Emily Weaver
Senior VP & CFO0.25yrno datano data
Mark Sweeney
VP & Chief Accounting Officer3.17yrsno datano data
Vikram Kini
Vice President of Investor Relationsno datano datano data
Craig Mundy
Senior Vice President of Human Resourcesno datano datano data
Michael Weatherred
Senior Vice President of IR Execution Excellence (IRX)no datano data0.00088% $42.9k
Todd Wyman
Senior Vice President of the Industrial Technologies & Services Businessno datano data0.0092% $449.8k
Michael Scheske
VP & Corporate Controller1.42yrsno data0.00093% $45.3k

3.2yrs

Average Tenure

47yo

Average Age

Experienced Management: IR's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vicente Reynal
CEO, President & Director4.17yrsUS$5.71m0.12% $6.0m
Peter Stavros
Independent Chairmanno datano datano data
William Donnelly
Independent Director2.83yrsUS$100.00k0.023% $1.1m
Gary Forsee
Directorno datano data0.012% $576.6k
Marc Jones
Independent Director1.25yrsno data0.0022% $109.7k
Tony White
Directorno datano data0.012% $565.4k
John Humphrey
Independent Director2yrsUS$200.00k0.0042% $202.3k
Kirk Arnold
Directorno datano data0.00040% $19.5k
Joshua Weisenbeck
Independent Director6.67yrsno datano data
Elizabeth Centoni
Independent Director1.25yrsno data0.0022% $109.7k

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: IR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ingersoll Rand Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ingersoll Rand Inc.
  • Ticker: IR
  • Exchange: NYSE
  • Founded: 1859
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$4.874b
  • Shares outstanding: 205.21m
  • Website: https://www.irco.com

Number of Employees


Location

  • Ingersoll Rand Inc.
  • 800-A Beaty Street
  • Davidson
  • North Carolina
  • 28036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2017
5GDDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2017
GDI.WINYSE (New York Stock Exchange)COMUSUSDFeb 2020

Biography

Ingersoll Rand Inc. provides mission-critical flow control and compression equipment; and associated aftermarket parts, consumables, and services in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Industrials, Energy, and Medical. The Industrials segment designs, manufactures, markets, and services a range of air compression, vacuum, and blower products, as well as offers associated aftermarket parts, consumables, and services. Its products are used in process-critical applications, such as the operation of industrial air tools, vacuum packaging of food products, aeration of waste water, and others. This segment sells its products through an integrated network of direct sales representatives and independent distributors under the Gardner Denver, CompAir, Elmo Rietschle, Robuschi, and other brand names. The Energy segment designs, manufactures, markets, and services a range of displacement and liquid ring vacuum pumps, compressors and integrated systems, and engineered fluid loading and transfer equipment, as well as offers associated aftermarket parts, consumables, and services under the Gardner Denver, Nash, Emco Wheaton, and other brands. This segment serves customers in upstream, midstream, and downstream energy markets, as well as petrochemical processing, transportation, and general industrial sectors. The Medical segment designs, manufactures, and markets a range of specialized gas, liquid, and precision syringe pumps and compressors under the Thomas and other brands for use in oxygen therapy, blood dialysis, patient monitoring, laboratory sterilization and wound treatment, and other applications. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is based in Davidson, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:46
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.