IR

Ingersoll RandNYSE:IR Stock Report

Market Cap

US$22.8b

7D

-0.8%

1Y

51.3%

Updated

18 Sep, 2021

Data

Company Financials +
IR fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance2/6
Financial Health5/6
Dividends0/6

IR Overview

Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific.

Ingersoll Rand Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ingersoll Rand
Historical stock prices
Current Share PriceUS$54.30
52 Week HighUS$34.02
52 Week LowUS$55.62
Beta1.52
1 Month Change9.17%
3 Month Change19.34%
1 Year Change51.25%
3 Year Change84.82%
5 Year Changen/a
Change since IPO157.35%

Recent News & Updates

Sep 10

Ingersoll Rand: Leveraged To Strong Industrial Markets And Capital Reallocation

Ingersoll Rand has unveiled a capital allocation strategy that will see further tuck-in deals in flow control, with a focus on value-added defensible niches, aftermarket leverage, and digital/data capabilities. Investors will share in the benefits of increased FCF generation, with management initiating a dividend and buyback plan. End markets should be cooperative for at least the next two years, with catch-up capex spending across multiple discrete and process industrial markets and longer-term growth in medical/biopharma and water. Ingersoll Rand shares are borderline on valuation, with a better expected return than many industrials (including assumed M&A contributions), but not as much EV/EBITDA upside.

Jun 27

Ingersoll Rand: M&A-Led Growth Strategy Continues With Seepex Acquisition

Ingersoll Rand announces the acquisition of positive displacement pump manufacturer, Seepex for a c. $513 million consideration. The acquisition comes on the heels of a series of divestitures, which have helped streamline its existing portfolio of assets. With the company also in the midst of realizing synergies, I see plenty of earnings upside ahead.

Shareholder Returns

IRUS MachineryUS Market
7D-0.8%-1.7%-0.6%
1Y51.3%31.4%33.8%

Return vs Industry: IR exceeded the US Machinery industry which returned 31.4% over the past year.

Return vs Market: IR exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is IR's price volatile compared to industry and market?
IR volatility
IR Beta1.52
Industry Beta1.25
Market Beta1

Stable Share Price: IR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: IR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185915,900Vicente Reynalhttps://www.irco.com

Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through four segments: Industrial Technologies and Services; Precision and Science Technologies; Specialty Vehicle Technologies; and High Pressure Solutions segments. The company offers air and gas compression, vacuum and blower products, fluid transfer and management equipment, loading systems, power tools and lifting equipment, displacement pumps, liquid and precision syringe pumps, and compressors, as well as as well as aftermarket parts, consumables, and services.

Ingersoll Rand Fundamentals Summary

How do Ingersoll Rand's earnings and revenue compare to its market cap?
IR fundamental statistics
Market CapUS$22.81b
Earnings (TTM)US$388.30m
Revenue (TTM)US$5.68b

58.8x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IR income statement (TTM)
RevenueUS$5.68b
Cost of RevenueUS$3.61b
Gross ProfitUS$2.07b
ExpensesUS$1.68b
EarningsUS$388.30m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.93
Gross Margin36.40%
Net Profit Margin6.84%
Debt/Equity Ratio41.2%

How did IR perform over the long term?

See historical performance and comparison

Valuation

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

58.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IR ($54.3) is trading above our estimate of fair value ($53.84)

Significantly Below Fair Value: IR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IR is poor value based on its PE Ratio (58.8x) compared to the US Machinery industry average (29.4x).

PE vs Market: IR is poor value based on its PE Ratio (58.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: IR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: IR is good value based on its PB Ratio (2.5x) compared to the US Machinery industry average (2.8x).


Future Growth

How is Ingersoll Rand forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IR's forecast earnings growth (28.7% per year) is above the savings rate (2%).

Earnings vs Market: IR's earnings (28.7% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: IR's revenue (5.6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: IR's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IR's Return on Equity is forecast to be low in 3 years time (8.8%).


Past Performance

How has Ingersoll Rand performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IR has a large one-off loss of $107.7M impacting its June 30 2021 financial results.

Growing Profit Margin: IR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IR has become profitable over the past 5 years, growing earnings by 40.8% per year.

Accelerating Growth: IR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (22.1%).


Return on Equity

High ROE: IR's Return on Equity (4.2%) is considered low.


Financial Health

How is Ingersoll Rand's financial position?


Financial Position Analysis

Short Term Liabilities: IR's short term assets ($5.7B) exceed its short term liabilities ($1.8B).

Long Term Liabilities: IR's short term assets ($5.7B) exceed its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: IR's debt to equity ratio (41.2%) is considered high.

Reducing Debt: IR's debt to equity ratio has reduced from 829.8% to 41.2% over the past 5 years.

Debt Coverage: IR's debt is well covered by operating cash flow (22.4%).

Interest Coverage: IR's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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

0.037%

Forecast Dividend Yield


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 recent payouts.

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

1.0yrs

Average management tenure


CEO

Vicente Reynal (46 yo)

5.67yrs

Tenure

US$12,141,174

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 ($USD12.14M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Vicente's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: IR's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: IR's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Ingersoll Rand Inc.'s 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$22.814b
  • Shares outstanding: 420.15m
  • Website: https://www.irco.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:15
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.