| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$54.30 |
| 52 Week High | US$34.02 |
| 52 Week Low | US$55.62 |
| Beta | 1.52 |
| 1 Month Change | 9.17% |
| 3 Month Change | 19.34% |
| 1 Year Change | 51.25% |
| 3 Year Change | 84.82% |
| 5 Year Change | n/a |
| Change since IPO | 157.35% |
Recent News & Updates
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.
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
| IR | US Machinery | US Market | |
|---|---|---|---|
| 7D | -0.8% | -1.7% | -0.6% |
| 1Y | 51.3% | 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
| IR volatility | |
|---|---|
| IR Beta | 1.52 |
| Industry Beta | 1.25 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1859 | 15,900 | Vicente Reynal | https://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
| IR fundamental statistics | |
|---|---|
| Market Cap | US$22.81b |
| Earnings (TTM) | US$388.30m |
| Revenue (TTM) | US$5.68b |
58.8x
P/E Ratio4.0x
P/S RatioIs IR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| IR income statement (TTM) | |
|---|---|
| Revenue | US$5.68b |
| Cost of Revenue | US$3.61b |
| Gross Profit | US$2.07b |
| Expenses | US$1.68b |
| Earnings | US$388.30m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.93 |
| Gross Margin | 36.40% |
| Net Profit Margin | 6.84% |
| Debt/Equity Ratio | 41.2% |
How did IR perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:15 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.