Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $38.07B
• Dividend Yield: 0.1%
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): 67.0
• Beta (1Y): 1.27
• Revenue Growth: 4.20%
• EPS Growth: -34.47%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.96
• Shares Outstanding: 391,617,980
• 10 Day Avg. Volume: 3,043,255
• 30 Day Avg. Volume: 3,295,057
• PEG Ratio: -1.82
• Price to Book (P/B): 3.13
• Price to Sales (P/S): 4.12
• P/FCF Ratio: 25.85
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 13.79
• Enterprise Value/Ebitda: 24.02
• 1Y Price Target: $106.00
• Price Target Upside: 12.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $104.00 ▲(10.71% Upside)
• Action: Upgraded Date: 02/14/26
• Date: Action: Upgraded 02/14/26

The score is driven mainly by solid fundamentals (healthy operating profitability and strong cash generation) and constructive technical momentum (price above key moving averages with positive MACD). This is tempered by a very high P/E and modest management guidance alongside noted near-term headwinds (tariffs, sub-1 book-to-bill, and slower long-cycle conversions).

Positive Factors

Operating profitability & cash generation

Sustained high operating margins and strong free cash flow provide durable internal funding for capex, R&D, and returns. FCF tracking ~0.9x net income and multiyear cash generation support resilience through cycles and enable strategic investments without sole reliance on external financing.

Recurring revenue acceleration & backlog

Growing recurring revenue and a sizable contracted backlog materially increase revenue visibility and stabilize cash flows. This recurring base raises lifetime customer value, supports higher margins over time, and cushions near-term organic volatility by converting contracted flows into predictable revenue.

Disciplined M&A execution and pipeline

A proven M&A program is expanding revenue and capabilities, adding ~ $275M inorganic revenue in 2025 while maintaining disciplined multiples. A deep pipeline plus recent tuck-ins accelerate scale, diversify end markets, and can sustainably lift growth above modest organic trends when integrated effectively.

Negative Factors

Rising leverage and weakening ROE

Debt increased materially into 2024–2025, reducing equity efficiency and pushing ROE lower. Higher leverage limits financial flexibility for large cyclical downturns, raises interest exposure, and increases the need for consistent cash generation to avoid pressure on credit metrics and strategic optionality.

Tariff-driven margin pressure & reinvestment

Tariffs and deliberate commercial reinvestment are compressing near-term margins and inflating costs. If sustained, these structural headwinds can erode net income and cash conversion, forcing either price increases (risking demand) or ongoing reinvestment that depresses profitability for multiple quarters.

Order conversion risk; book-to-bill <1

A book-to-bill below one and lengthening decision cycles create execution risk: a strong funnel may not convert to revenue timely, inflating backlog aging and pressuring near-term growth. Structural delays in long-cycle projects can reduce revenue visibility and delay return on invested capital.

Ingersoll Rand Business Overview & Revenue Model

Company Description

Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services various air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services. The Precision and Science Technologies segment designs, manufactures, and markets a range of specialized positive displacement pumps, fluid management systems, accessories and aftermarket parts for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management and flow control in specialized or critical applications. The company's products are used in medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, precision irrigation, energy, food and beverage, agriculture, and vacuum and automated liquid handling end-markets, as well as various manufacturing and industrial facilities applications. It sells through an integrated network of direct sales representatives and independent distributors under the Ingersoll Rand, Gardner Denver, Club Car, CompAir, Nash, Elmo Rietschle, Robuschi, Thomas, Milton Roy, Seepex, ARO, Emco Wheaton, Runtech Systems, Air Dimensions, Albin, Dosatron, Haskel, LMI, Maximus, MP, Oberdorfer, Welch, Williams, Zinnser Analytic, and YZ brands. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.

How the Company Makes Money

Ingersoll Rand generates revenue through the sale of its diverse range of products and services, primarily focusing on industrial equipment and climate solutions. The company's revenue model is driven by both product sales and recurring service contracts, which include maintenance, repair, and parts sales for their machinery. A significant portion of their earnings comes from aftermarket services, which provide ongoing support and enhancements for their installed base of equipment. Additionally, Ingersoll Rand benefits from strategic partnerships with various industrial sectors, enhancing their market reach and capabilities. Their commitment to sustainability and innovation allows them to capture new market opportunities, contributing positively to their overall earnings.

Ingersoll Rand Financial Statement Overview

Summary

Steady revenue growth and strong operating margins (2025 EBIT ~18.5%, EBITDA ~25.1%) with durable cash generation (2025 OCF ~$1.36B; FCF ~$1.22B). Offsetting this, 2025 net margin and net income fell versus 2024, ROE declined (~5.8%), and leverage has increased versus 2022–2023, indicating some deterioration in earnings efficiency and balance-sheet conservatism.

Income Statement

Revenue has grown steadily from 2021–2025 (2025 revenue up ~2.6% YoY), and operating profitability has improved meaningfully versus 2020, with 2025 EBIT margin around 18.5% and EBITDA margin ~25.1%. However, profitability softened in 2025 versus 2024: net margin fell to ~7.6% from ~11.6%, and net income declined despite higher revenue, pointing to weaker below-the-line performance. Overall: solid operating engine with a recent step-down in net earnings quality.

Balance Sheet

Leverage is moderate with 2025 debt-to-equity at ~0.47, but it has risen versus 2022–2023 (low ~0.28 in 2023) as total debt increased sharply into 2024–2025. Equity remains sizable (~$10.1B in 2025) supporting the capital structure, yet returns on equity have drifted down to ~5.8% in 2025 from ~8.2% in 2024, consistent with the earnings decline. Overall: generally sound balance sheet with a noticeable recent uptick in leverage and lower shareholder returns.

Cash Flow

Cash generation is strong and consistent: 2025 operating cash flow (~$1.36B) and free cash flow (~$1.22B) remain healthy, and free cash flow has closely tracked reported earnings (around ~0.90x net income in 2024–2025). The main weakness is momentum—free cash flow growth turned slightly negative in 2024 and declined further in 2025—suggesting a plateau after earlier expansion. Overall: solid cash conversion with slowing growth.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.65B	7.24B	6.88B	5.92B	5.15B
Gross Profit	2.95B	3.17B	2.88B	2.33B	1.99B
EBITDA	1.92B	1.83B	1.65B	1.28B	1.02B
Net Income	581.40M	838.60M	778.70M	604.70M	562.50M
Balance Sheet
Total Assets	18.30B	18.01B	15.56B	14.77B	15.15B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.54B	1.60B	1.61B	2.11B
Total Debt	4.78B	4.98B	2.77B	2.79B	3.48B
Total Liabilities	8.14B	7.76B	5.72B	5.51B	6.08B
Stockholders Equity	10.09B	10.18B	9.78B	9.20B	9.00B
Cash Flow
Free Cash Flow	1.22B	1.25B	1.27B	765.70M	551.40M
Operating Cash Flow	1.36B	1.40B	1.38B	860.30M	615.50M
Investing Cash Flow	-660.60M	-3.11B	-1.06B	-332.90M	914.30M
Financing Cash Flow	-1.05B	1.71B	-337.50M	-954.00M	-1.16B

Ingersoll Rand Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IR, the sentiment is Positive. The current price of 93.94 is above the 20-day moving average (MA) of 93.76, above the 50-day MA of 87.30, and above the 200-day MA of 82.46, indicating a bullish trend. The MACD of 2.74 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IR.

Ingersoll Rand Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AME	79 Outperform	$53.65B	36.61	14.59%	0.59%	3.67%	10.44%
DOV	75 Outperform	$31.30B	29.23	15.29%	1.04%	-5.24%	45.69%
IR	70 Outperform	$38.07B	67.04	5.35%	0.10%	4.20%	-34.47%
PNR	68 Neutral	$16.66B	25.70	17.48%	0.96%	0.83%	-1.32%
ROK	68 Neutral	$44.55B	45.36	27.71%	1.33%	0.98%	-7.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RRX	61 Neutral	$14.50B	52.01	4.27%	0.97%	-4.99%	22.16%

Ingersoll Rand Corporate Events

Ingersoll Rand Appoints Jerome Guillen to Board

On December 17, 2025, Ingersoll Rand announced the appointment of Jerome Guillen to its Board of Directors, effective January 1, 2026. Guillen, formerly a Tesla executive with extensive experience in innovation, engineering, and operational leadership across various sectors, will contribute to the company’s sustainability and growth. The move reflects Ingersoll Rand’s strategic commitment to fostering innovation and operational excellence, signaling its intent to strengthen its industry position and deliver cutting-edge solutions to stakeholders.

The most recent analyst rating on (IR) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on Ingersoll Rand stock, see the IR Stock Forecast page.