NYSE:IR

Stock Analysis Report

Executive Summary

Ingersoll-Rand Plc designs, manufactures, sells, and services industrial and commercial products.


Snowflake Analysis

Established dividend payer with mediocre 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.8%

IR

-5.6%

US Machinery

-7.4%

US Market


1 Year Return

29.7%

IR

2.8%

US Machinery

10.5%

US Market

Return vs Industry: IR exceeded the US Machinery industry which returned 2.8% over the past year.

Return vs Market: IR exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

IRIndustryMarket
7 Day-4.8%-5.6%-7.4%
30 Day7.5%-3.5%-3.6%
90 Day5.3%-5.4%-0.6%
1 Year32.1%29.7%4.7%2.8%12.8%10.5%
3 Year81.6%71.3%27.5%19.4%37.4%28.6%
5 Year128.5%107.1%55.7%37.3%61.3%43.6%

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?

24.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IR ($138.01) is trading above our estimate of fair value ($102.72)

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 (24.3x) compared to the Machinery industry average (21x).

PE vs Market: IR is poor value based on its PE Ratio (24.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: IR is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: IR is overvalued based on its PB Ratio (4.5x) compared to the US Machinery industry average (2.1x).


Next Steps

Future Growth

How is Ingersoll-Rand forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IR's forecast earnings growth (11% per year) is above the savings rate (1.7%).

Earnings vs Market: IR's earnings (11% per year) are forecast to grow slower than the US market (13.2% per year).

High Growth Earnings: IR's earnings are forecast to grow, but not significantly.

Revenue vs Market: IR's revenue (2.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: IR's revenue (2.5% 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 high in 3 years time (21.9%)


Next Steps

Past Performance

How has Ingersoll-Rand performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IR has high quality earnings.

Growing Profit Margin: IR's current net profit margins (8.3%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: IR's earnings have grown by 12.1% per year over the past 5 years.

Accelerating Growth: IR's earnings growth over the past year (0.8%) is below its 5-year average (12.1% per year).

Earnings vs Industry: IR earnings growth over the past year (0.8%) underperformed the Machinery industry 0.9%.


Return on Equity

High ROE: IR's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ingersoll-Rand's financial position?


Financial Position Analysis

Short Term Liabilities: IR's short term assets ($6.2B) exceed its short term liabilities ($4.9B).

Long Term Liabilities: IR's short term assets ($6.2B) do not cover its long term liabilities ($8.3B).


Debt to Equity History and Analysis

Debt Level: IR's debt to equity ratio (76.2%) is considered high.

Reducing Debt: IR's debt to equity ratio has increased from 70% to 76.2% over the past 5 years.

Debt Coverage: IR's debt is well covered by operating cash flow (34.4%).

Interest Coverage: IR's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: IR's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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

1.53%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Ingersoll-Rand before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.5%marketbottom25%1.5%markettop25%3.9%industryaverage2.1%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: IR's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: IR's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.9%).


Stability and Growth of Payments

Stable Dividend: IR's dividends per share have been stable in the past 10 years.

Growing Dividend: IR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.4%), IR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IR's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Mike Lamach (55yo)

10yrs

Tenure

US$15,585,485

Compensation

Mr. Michael W. Lamach, also known as Mike, has been the Chief Executive Officer of Ingersoll-Rand Plc since February 4, 2010 and its Chairman since June 2010. Mr. Lamach serves as the Chairman and Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD15.59M) is above average for companies of similar size in the US market ($USD10.82M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Lamach
Chairman & CEO10yrsUS$15.59m0.11% $36.8m
David Regnery
President & COO0.08yrsUS$4.02m0.017% $5.6m
Susan Carter
Senior VP & CFO6.3yrsUS$5.08m0.051% $16.8m
Marcia Avedon
EVP, Chief Human Resources9.3yrsUS$3.56m0.027% $8.9m
Christopher Kuehn
VP & Chief Accounting Officer4.7yrsno data0.0091% $3.0m
Paul Camuti
Executive VP0yrsno data0.026% $8.7m
Stephen Hagood
Senior VP & Chief Information Officer 7.1yrsno datano data
Zachary Nagle
Vice President of Investor Relations0yrsno datano data
Evan Turtz
Senior VP0.8yrsno data0.0066% $2.2m
Todd Wyman
Senior VP and President of Compression Technologies & Services4.3yrsUS$3.16mno data

6.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: IR's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Lamach
Chairman & CEO10yrsUS$15.59m0.11% $36.8m
Marcia Avedon
EVP, Chief Human Resources9.3yrsUS$3.56m0.027% $8.9m
Paul Camuti
Executive VP0yrsno data0.026% $8.7m
Gary Michel
Member of Advisory Council0yrsUS$3.01mno data
W. Tew
Executive Director of CEES & Member of Advisory Council9.3yrsno datano data
Gary Forsee
Independent Director13.1yrsUS$320.03k0.012% $3.8m
Richard Swift
Lead Independent Director10.1yrsUS$362.53k0.0015% $483.0k
Tony White
Independent Director23.1yrsUS$325.03k0.011% $3.7m
John Surma
Independent Director7.1yrsUS$337.53k0.0035% $1.2m
Ann Berzin
Independent Director19.1yrsUS$327.53k0.012% $4.1m

9.9yrs

Average Tenure

65yo

Average Age

Experienced Board: IR's board of directors are considered experienced (9.9 years average tenure).


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 Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ingersoll-Rand Plc
  • Ticker: IR
  • Exchange: NYSE
  • Founded: 1871
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$33.081b
  • Shares outstanding: 238.40m
  • Website: https://www.company.ingersollrand.com

Number of Employees


Location

  • Ingersoll-Rand Plc
  • 170/175 Lakeview Drive
  • Airside Business Park
  • Swords
  • Co. Dublin
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRNYSE (New York Stock Exchange)YesCommon Shares of $1USUSDJan 1968
0Y2SLSE (London Stock Exchange)YesCommon Shares of $1GBUSDJan 1968
2ISDB (Deutsche Boerse AG)YesCommon Shares of $1DEEURJan 1968
I1RP34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 SHS UNSPONBRBRLJan 2020
IR.WINYSE (New York Stock Exchange)WHEN ISSUEDUSUSDFeb 2020

Biography

Ingersoll-Rand Plc designs, manufactures, sells, and services industrial and commercial products. The company operates through Climate and Industrial segments. The Climate segment offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality; industrial refrigeration; motor replacements; refrigerant reclamation; thermostats/controls; transport heater products; and water source heat pumps. It also provides building management; bus, rail, and multi-pipe hvac; control; container, cryogenic, diesel-powered, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration; ductless; geothermal; package heating and cooling; temporary heating and cooling; and unitary systems, as well as aftermarket and OEM parts and supplies. In addition, this segment offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. The Industrial segment provides air treatment and separation, engine starting, ergonomic material handling, fluid handling, precision fastening, and mobile golf information systems; and airends, blowers, compressors, dryers, filters, golf vehicles, hoists, fluid power components, power tools, pumps, rough terrain vehicles, utility and low-speed vehicles, and winches, as well as aftermarket controls, parts, accessories, and consumables. It also provides aftermarket and OEM parts and supplies. The company markets and sells its products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand Plc was founded in 1871 and is headquartered in Swords, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 23:49
End of Day Share Price2020/02/26 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.