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

2.3%

IR

3.9%

US Machinery

0.4%

US Market


1 Year Return

28.3%

IR

18.9%

US Machinery

11.4%

US Market

Return vs Industry: IR exceeded the US Machinery industry which returned 18.9% over the past year.

Return vs Market: IR exceeded the US Market which returned 11.4% over the past year.


Shareholder returns

IRIndustryMarket
7 Day2.3%3.9%0.4%
30 Day-3.5%4.0%0.3%
90 Day-3.0%0.5%-1.2%
1 Year30.7%28.3%21.4%18.9%13.9%11.4%
3 Year90.0%79.0%55.6%45.6%47.2%37.6%
5 Year113.0%93.1%57.9%38.7%62.4%44.6%

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?

20.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IR ($118.73) is trading above our estimate of fair value ($99.18)

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


Price To Earnings Ratio

PE vs Industry: IR is good value based on its PE Ratio (20.1x) compared to the Machinery industry average (20.8x).

PE vs Market: IR is poor value based on its PE Ratio (20.1x) compared to the US market (17.7x).


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 (4x) compared to the US Machinery industry average (2.3x).


Next Steps

Future Growth

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

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IR's forecast earnings growth (9% per year) is above the savings rate (2.7%).

Earnings vs Market: IR's earnings (9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: IR's revenue (3.8% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IR's revenue (3.8% 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 (21.4%)


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

Earnings Trend: IR's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: IR's earnings growth over the past year (0.08%) is below its 5-year average (15.2% per year).

Earnings vs Industry: IR earnings growth over the past year (0.08%) underperformed the Machinery industry 18.3%.


Return on Equity

High ROE: IR's Return on Equity (20.3%) is considered high.


Return on Assets

ROA vs Industry: IR has a higher Return on Assets than the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: IR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ingersoll-Rand's financial position?


Financial Position Analysis

Short Term Liabilities: IR's short term assets ($6.4B) exceeds its short term liabilities ($5.2B)

Long Term Liabilities: IR's short term assets (6.4B) do not cover its long term liabilities (8.3B)


Debt to Equity History and Analysis

Debt Level: IR's debt to equity ratio (80.2%) is considered high

Reducing Debt: IR's debt to equity ratio has increased from 55.3% to 80.2% over the past 5 years.

Debt Coverage: IR's debt is well covered by operating cash flow (24.8%).

Interest Coverage: IR's interest payments on its debt are well covered by EBIT (9.8x coverage).


Balance Sheet

Inventory Level: IR has a high level of physical 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?

1.79%

Current Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: IR's dividend (1.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: IR's dividend (1.79%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: IR's dividend payments have been volatile 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 (35.9%), 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 (31.9% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Mike Lamach (55yo)

9.7yrs

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 ($USD15.59M) is about average for companies of similar size in the US market ($USD11.17M).

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


Management Age and Tenure

6.0yrs

Average Tenure

55.5yo

Average Age

Experienced Management: IR's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

65yo

Average Age

Experienced Board: IR's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: IR 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: 6yrs
    • Compensation: US$5.08m
  • Marcia Avedon (57yo)

    Senior VP of HR

    • Tenure: 8.9yrs
    • Compensation: US$3.56m
  • Mike Lamach (55yo)

    Chairman & CEO

    • Tenure: 9.7yrs
    • 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: 4yrs
    • Compensation: US$3.16m
  • Paul Camuti (57yo)

    Senior VP of Innovation

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

    Executive Vice President of Climate & Industrial Segments

    • Tenure: 2.1yrs
    • Compensation: US$4.02m
  • Chris Kuehn (46yo)

    VP & Chief Accounting Officer

    • Tenure: 4.3yrs
  • Steve Hagood

    Senior VP & Chief Information Officer

    • Tenure: 6.8yrs
  • Keith Sultana (49yo)

    Senior Vice President of Global Operations & Integrated Supply Chain

    • Tenure: 4yrs

Board Members

  • Gary Forsee (68yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$320.03k
  • Tony White (72yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$325.03k
  • John Surma (65yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$337.53k
  • Jared Cohon (71yo)

    Independent Director

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

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$327.53k
  • Marcia Avedon (57yo)

    Senior VP of HR

    • Tenure: 8.9yrs
    • Compensation: US$3.56m
  • Mike Lamach (55yo)

    Chairman & CEO

    • Tenure: 9.7yrs
    • 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: 8.9yrs

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$28.682b
  • 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 Analysis2019/10/23 23:47
End of Day Share Price2019/10/23 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.