NYSE:IR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

-0.9%

IR

-2.6%

US Machinery

-0.6%

US Market


1 Year Return

18.4%

IR

-7.4%

US Machinery

0.7%

US Market

IR outperformed the Machinery industry which returned -7.5% over the past year.

IR outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

IRIndustryMarket
7 Day-0.9%-2.6%-0.6%
30 Day7.1%9.5%4.9%
90 Day-1.9%-1.8%1.7%
1 Year20.6%18.4%-5.4%-7.4%3.0%0.7%
3 Year102.2%90.5%48.1%38.5%44.8%35.4%
5 Year136.4%114.2%54.3%35.3%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

20.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Ingersoll-Rand's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Ingersoll-Rand's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Ingersoll-Rand is overvalued based on earnings compared to the US Machinery industry average.

Ingersoll-Rand is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Ingersoll-Rand is poor value based on expected growth next year.


Price Based on Value of Assets

Ingersoll-Rand is overvalued based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Ingersoll-Rand's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Ingersoll-Rand's earnings are expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).

Ingersoll-Rand's revenue growth is positive but not above the United States of America market average.

Ingersoll-Rand's earnings growth is positive but not above the United States of America market average.

Ingersoll-Rand's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Ingersoll-Rand is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Ingersoll-Rand's year on year earnings growth rate has been positive over the past 5 years.

Ingersoll-Rand's 1-year earnings growth is less than its 5-year average (0.1% vs 15.2%)

Ingersoll-Rand's earnings growth has not exceeded the US Machinery industry average in the past year (0.1% vs 18.7%).


Return on Equity

Ingersoll-Rand has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Ingersoll-Rand used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Ingersoll-Rand has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Ingersoll-Rand's financial position?


Financial Position Analysis

Ingersoll-Rand is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Ingersoll-Rand's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Ingersoll-Rand's level of debt (80.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (55.3% vs 80.2% today).

Debt is well covered by operating cash flow (24.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9.8x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.88%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Ingersoll-Rand's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Ingersoll-Rand's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

What is the CEO of Ingersoll-Rand's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Mike Lamach (55yo)

9.6yrs

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

Mike's remuneration is higher than average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.9yrs

Average Tenure

55.5yo

Average Age

The average tenure for the Ingersoll-Rand management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.3yrs

Average Tenure

65yo

Average Age

The average tenure for the Ingersoll-Rand board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Ingersoll-Rand individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$111,69109 Aug 19
Jared Cohon
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares938
Max PriceUS$119.07
SellUS$738,21821 Feb 19
Paul Camuti
EntityIndividual
Role
Member of Advisory Board
Senior VP of Innovation
Shares7,034
Max PriceUS$104.95
SellUS$244,22912 Feb 19
Keith Sultana
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Global Operations & Integrated Supply Chain
Shares2,376
Max PriceUS$102.79
SellUS$202,22712 Feb 19
Christopher Kuehn
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares1,948
Max PriceUS$103.81
SellUS$79,94804 Feb 19
Christopher Kuehn
EntityIndividual
Role
Chief Accounting Officer
VP & Chief Accounting Officer
Shares801
Max PriceUS$99.81
SellUS$643,68204 Feb 19
Marcia Avedon
EntityIndividual
Role
Member of Advisory Board
Senior VP of HR
Shares6,486
Max PriceUS$99.24

Ownership Breakdown


Management Team

  • Sue Carter (61yo)

    Senior VP & CFO

    • Tenure: 5.9yrs
    • Compensation: US$5.08m
  • Marcia Avedon (57yo)

    Senior VP of HR

    • Tenure: 8.8yrs
    • Compensation: US$3.56m
  • Mike Lamach (55yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$15.59m
  • Zac Nagle

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Todd Wyman (51yo)

    Senior VP and President of Compression Technologies & Services

    • Tenure: 3.9yrs
    • Compensation: US$3.16m
  • Paul Camuti (57yo)

    Senior VP of Innovation

    • Tenure: 0yrs
  • Dave Regnery (56yo)

    Executive Vice President of Climate & Industrial Segments

    • Tenure: 2yrs
    • Compensation: US$4.02m
  • Chris Kuehn (46yo)

    VP & Chief Accounting Officer

    • Tenure: 4.3yrs
  • Steve Hagood

    Senior VP & Chief Information Officer

    • Tenure: 6.7yrs
  • Keith Sultana (49yo)

    Senior Vice President of Global Operations & Integrated Supply Chain

    • Tenure: 3.9yrs

Board Members

  • Gary Forsee (68yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$320.03k
  • Tony White (72yo)

    Director

    • Tenure: 22.7yrs
    • Compensation: US$325.03k
  • John Surma (65yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$337.53k
  • Jared Cohon (71yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$313.88k
  • Ann Berzin (67yo)

    Independent Director

    • Tenure: 18.7yrs
    • Compensation: US$327.53k
  • Marcia Avedon (57yo)

    Senior VP of HR

    • Tenure: 8.8yrs
    • Compensation: US$3.56m
  • Mike Lamach (55yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$15.59m
  • Paul Camuti (57yo)

    Senior VP of Innovation

    • Tenure: 0yrs
  • Gary Michel (56yo)

    Member of Advisory Council

    • Tenure: 0yrs
    • Compensation: US$3.01m
  • W. Tew

    Executive Director of CEES & Member of Advisory Council

    • Tenure: 8.8yrs

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$29.750b
  • Shares outstanding: 241.58m
  • 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

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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/22 23:41
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.