Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $31.48B
• Dividend Yield: 0.1%
• Average Volume (3M): 3.06M
• Price to Earnings (P/E): 61.8
• Beta (1Y): 1.37
• Revenue Growth: 4.67%
• EPS Growth: -36.65%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Machinery
• EPS (TTM): 0.80
• Shares Outstanding: 397,452,500
• 10 Day Avg. Volume: 2,192,538
• 30 Day Avg. Volume: 3,060,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 11.80
• Enterprise Value/Ebitda: 24.26
• 1Y Price Target: $91.00
• Price Target Upside: 12.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 67 Neutral
• Price Target: $85.00 ▲(5.00% Upside)

Ingersoll Rand's overall stock score is driven by strong financial performance and a positive outlook from the recent earnings call, which highlighted increased guidance and strategic M&A activity. However, technical indicators suggest bearish momentum, and the stock appears overvalued based on its high P/E ratio. The company's focus on sustainability and strategic growth initiatives provides a solid foundation, but challenges in profitability and market conditions pose risks.

Positive Factors

Growth Strategy

A consistent focus on execution, margin expansion, and M&A should position IR to meaningfully compound value over time.

M&A Activity

The M&A pipeline remains robust with 8 smaller businesses currently under LOI, which suggests potential future growth.

Negative Factors

Short-term Challenges

Concerns were mostly focused on near-term issues such as orders and margins, indicating potential short-term challenges.

Ingersoll Rand Business Overview & Revenue Model

Company Description

Ingersoll Rand (IR) is a global leader in industrial manufacturing, specializing in air compression and related technologies. The company operates primarily in the sectors of industrial products, climate control, and specialty vehicle technologies. Core products include air compressors, power tools, and material handling equipment, along with a range of services aimed at enhancing operational efficiency and sustainability.

How the Company Makes Money

Ingersoll Rand generates revenue through multiple key streams, including the sale of industrial equipment such as air compressors and power tools, which account for a significant portion of its income. The company also earns money through service agreements, maintenance contracts, and aftermarket parts, which provide recurring revenue. Additionally, strategic partnerships with other industrial players and suppliers enhance their market reach and service capabilities. The company's focus on innovation and sustainability, including energy-efficient products, positions it favorably in a market increasingly driven by environmental considerations, further contributing to its earnings.

Ingersoll Rand Financial Statement Overview

Summary

Ingersoll Rand demonstrates strong revenue growth and a stable balance sheet with low leverage. However, the company faces challenges in maintaining profitability margins and improving return on equity. Cash flow metrics are robust, although free cash flow growth has declined. Overall, the company is in a solid financial position but needs to focus on enhancing profitability and efficiency.

Income Statement

Ingersoll Rand shows a solid revenue growth trajectory with a TTM revenue growth rate of 13.4%. Gross profit margin remains healthy at 42.49% for TTM, although it has slightly decreased from the previous year. Net profit margin has decreased to 7.10% in TTM from 11.59% in 2024, indicating some pressure on net profitability. EBIT and EBITDA margins have also seen a decline, suggesting increased operational costs or other expenses. Overall, the company demonstrates strong revenue growth but faces challenges in maintaining profitability margins.

Balance Sheet

The balance sheet of Ingersoll Rand is robust with a debt-to-equity ratio of 0.48 in TTM, indicating a conservative leverage strategy. The equity ratio is strong, reflecting a solid capital structure. However, the return on equity has decreased to 5.10% in TTM from 8.24% in 2024, suggesting reduced efficiency in generating profits from shareholders' equity. Overall, the company maintains a stable financial position with low leverage but needs to improve its return on equity.

Cash Flow

Ingersoll Rand's cash flow statement reveals a slight decline in free cash flow growth, with a negative growth rate of -5.08% in TTM. The operating cash flow to net income ratio is healthy at 0.78, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.95, suggesting efficient conversion of net income to free cash flow. Despite the decline in free cash flow growth, the company maintains strong cash flow metrics relative to its income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.36B	7.24B	6.88B	5.92B	5.15B	4.91B
Gross Profit	3.13B	3.17B	2.88B	2.33B	1.99B	1.61B
EBITDA	1.52B	1.79B	1.65B	1.31B	1.04B	686.90M
Net Income	522.60M	838.60M	778.70M	604.70M	562.50M	-32.40M
Balance Sheet
Total Assets	18.06B	18.01B	15.56B	14.77B	15.15B	16.06B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.54B	1.60B	1.61B	2.11B	1.75B
Total Debt	4.85B	4.81B	2.77B	2.79B	3.48B	3.95B
Total Liabilities	7.90B	7.76B	5.72B	5.51B	6.08B	6.87B
Stockholders Equity	10.09B	10.18B	9.78B	9.20B	9.00B	9.12B
Cash Flow
Free Cash Flow	1.36B	1.25B	1.27B	765.70M	551.40M	865.60M
Operating Cash Flow	1.43B	1.40B	1.38B	860.30M	615.50M	914.30M
Investing Cash Flow	-553.00M	-3.11B	-1.06B	-332.90M	914.30M	-37.90M
Financing Cash Flow	-677.60M	1.71B	-337.50M	-954.00M	-1.16B	328.70M

Ingersoll Rand Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 80.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Neutral. The current price of 80.95 is above the 20-day moving average (MA) of 79.12, below the 50-day MA of 82.53, and below the 200-day MA of 85.32, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IR.

Ingersoll Rand Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AME	78 Outperform	$43.39B	30.30	14.64%	0.63%	2.28%	7.94%
PNR	76 Outperform	$18.04B	30.06	17.15%	0.89%	-0.25%	-7.32%
DOV	74 Outperform	$24.46B	10.75	16.72%	1.16%	-8.23%	54.92%
ROK	73 Outperform	$38.44B	40.11	28.46%	1.54%	-8.23%	-3.29%
IR	67 Neutral	$31.48B	61.84	5.21%	0.10%	4.67%	-36.65%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
RRX	62 Neutral	$9.78B	39.16	3.84%	0.96%	-7.88%	―

Ingersoll Rand Corporate Events

Ingersoll Rand Appoints Aurobind Satpathy as New Director

On July 14, 2025, Ingersoll Rand‘s Board of Directors appointed Aurobind Satpathy as a new director, effective July 15, 2025. Satpathy, a senior partner at McKinsey & Company, brings extensive experience in mergers, growth strategies, and technology enablement. His appointment is expected to enhance the company’s strategic direction and underscores Ingersoll Rand’s commitment to innovation and sustainable growth.

Ingersoll Rand Expands Michael Weatherred’s Role

On June 12, 2025, Ingersoll Rand‘s Board of Directors expanded the role of Michael Weatherred, Senior Vice President, to include leadership of the Precision & Science Technologies segment. This change aims to support growth and optimize capital allocation, with adjustments made to his compensation package effective June 16, 2025. Additionally, the Compensation Committee approved equity awards for Weatherred and Andrew Schiesl, Senior Vice President and General Counsel, to ensure market competitiveness and retention. These awards will be incorporated into future annual grants, with vesting and performance evaluation periods extending through 2027.

Ingersoll Rand Stockholders Meeting Approves Key Decisions

On June 12, 2025, Ingersoll Rand Inc. held its annual stockholders meeting where approximately 95.01% of eligible shares were represented. During the meeting, stockholders elected directors for the upcoming term, ratified Deloitte & Touche LLP as the independent accounting firm for fiscal 2025, and approved executive compensation on a non-binding basis. These decisions reflect continued shareholder support for the company’s leadership and strategic direction.