Ingersoll Rand Inc.
Ingersoll Rand Inc. Fundamental Analysis
Ingersoll Rand Inc. (IR) shows weak financial fundamentals with a PE ratio of 63.83, profit margin of 7.60%, and ROE of 5.70%. The company generates $7.7B in annual revenue with moderate year-over-year growth of 5.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 46.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IR's fundamental strength across five key dimensions:
Efficiency Score
WeakIR struggles to generate sufficient returns from assets.
Valuation Score
WeakIR trades at a premium to fair value.
Growth Score
ModerateIR shows steady but slowing expansion.
Financial Health Score
ExcellentIR maintains a strong and stable balance sheet.
Profitability Score
WeakIR struggles to sustain strong margins.
Key Financial Metrics
Is IR Expensive or Cheap?
P/E Ratio
IR trades at 63.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IR's PEG of 7.89 indicates potential overvaluation.
Price to Book
The market values Ingersoll Rand Inc. at 3.68 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.96 times EBITDA. This signals the market has high growth expectations.
How Well Does IR Make Money?
Net Profit Margin
For every $100 in sales, Ingersoll Rand Inc. keeps $7.60 as profit after all expenses.
Operating Margin
Core operations generate 18.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.70 in profit for every $100 of shareholder equity.
ROA
Ingersoll Rand Inc. generates $3.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ingersoll Rand Inc. produces operating cash flow of $1.36B, showing steady but balanced cash generation.
Free Cash Flow
Ingersoll Rand Inc. generates strong free cash flow of $1.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.10 in free cash annually.
FCF Yield
IR converts 3.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
63.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.68
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How IR Stacks Against Its Sector Peers
| Metric | IR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 63.83 | 26.49 | Worse (Expensive) |
| ROE | 5.70% | 1307.00% | Weak |
| Net Margin | 7.60% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.47 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 10.48 | Strong Liquidity |
| ROA | 3.18% | -1549792.00% (disorted) | Weak |
IR outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ingersoll Rand Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
80.91%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
165.90%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
105.24%
Industry Style: Cyclical, Value, Infrastructure
High Growth