Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $34.17B
• Dividend Yield: 0.09%
• Average Volume (3M): 3.16M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.24
• Revenue Growth: 5.27%
• EPS Growth: 0.61%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): 0.72
• Shares Outstanding: 403,462,740
• 10 Day Avg. Volume: 2,462,966
• 30 Day Avg. Volume: 3,160,405
• PEG Ratio: -1.12
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.87
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 1.16
• 1Y Price Target: $89.33
• Price Target Upside: 7.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $92.00 ▲(10.58%Upside)

Ingersoll Rand's strong financial performance and positive earnings call sentiment are major strengths, driving the overall assessment. Technical analysis presents a mixed picture, with neutral indicators, while valuation raises concerns of potential overvaluation. The company's strategic initiatives and solid financial foundation position it well, though challenges like margin pressures and tariff impacts must be managed.

Positive Factors

Mergers and Acquisitions

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

Service Revenue Growth

IR's plan to drive recurring service revenue to ~$1B by the end of 2027 from a bit over $300mn in 2024 indicates a strong focus on long-term growth.

Negative Factors

Geopolitical Risks

Concern remains that U.S. trade and foreign policy could lead to customer spending delays, with the company overexposed to markets outside the U.S.

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 industrial company that provides mission-critical flow creation products and industrial solutions. The company operates across various sectors, including industrial technologies, precision and science technologies, and specialty vehicle technologies. Its core products and services include air compressors, pumps, power tools, lifting and material handling equipment, and fluid management systems, which are used in industries such as manufacturing, transportation, energy, and healthcare.

How the Company Makes Money

Ingersoll Rand generates revenue through the sale of its diverse portfolio of industrial products and solutions. The company's key revenue streams include the manufacturing and sale of air compressors and pumps, which are essential for various industrial applications. Additionally, Ingersoll Rand offers aftermarket services, including maintenance, repair, and parts replacement, which provide a recurring revenue stream. Significant partnerships with distributors and direct sales to large industrial clients also contribute to its earnings. The company leverages its global presence and innovation in product design to maintain competitive pricing and expand its market share.

Ingersoll Rand Financial Statement Overview

Summary

Ingersoll Rand shows strong revenue and profit growth, with improved leverage ratios and robust cash flow generation. The financial health is solid, with effective cost management and operational efficiency. Minor areas for improvement in cash flow growth exist, but overall, the company is well-positioned within its sector.

Income Statement

Ingersoll Rand has demonstrated strong revenue growth with consistent increases over the years, particularly a notable increase from 2022 to the TTM. The gross profit margin remains healthy, indicating effective cost management. The net profit margin and EBIT margin are robust, reflecting strong operational efficiency. However, EBITDA margins have slightly decreased in TTM compared to the previous annual period, suggesting potential areas for cost optimization.

Balance Sheet

The company maintains a solid equity ratio, showcasing financial stability. The debt-to-equity ratio has improved significantly in the TTM, indicating reduced leverage risk which is a positive signal for investors. ROE is strong, reflecting efficient use of equity to generate profits. Overall, the balance sheet exhibits a solid foundation with manageable liabilities and increasing equity.

Cash Flow

Operating cash flow has shown consistent growth, supporting the company's liquidity position. The free cash flow has also increased, indicating that the company effectively converts revenue into cash. The operating cash flow to net income ratio is high, suggesting good cash conversion efficiency. However, the free cash flow growth rate has slowed slightly in the TTM, which could suggest a need for monitoring future liquidity trends.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.28B	7.24B	6.88B	5.92B	5.15B	4.91B
	Gross Profit
3.10B	3.17B	2.88B	2.33B	1.99B	1.61B
	EBIT
1.40B	1.30B	1.16B	817.30M	565.70M	85.70M
	EBITDA
1.79B	1.79B	1.65B	1.31B	1.04B	686.90M
	Net Income Common Stockholders
822.90M	838.60M	778.70M	604.70M	562.50M	-32.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	1.54B	1.60B	1.61B	2.11B	1.75B
	Total Assets
14.99B	18.01B	15.56B	14.77B	15.15B	16.06B
	Total Debt
2.78B	4.81B	2.77B	2.75B	3.44B	3.90B
	Net Debt
1.66B	3.27B	1.17B	1.14B	1.33B	2.15B
	Total Liabilities
5.61B	7.76B	5.72B	5.51B	6.08B	6.87B
	Stockholders Equity
9.32B	10.18B	9.78B	9.20B	9.00B	9.12B
Cash Flow		Free Cash Flow
1.43B	1.25B	1.27B	765.70M	551.40M	865.60M
	Operating Cash Flow
1.49B	1.40B	1.38B	860.30M	615.50M	914.30M
	Investing Cash Flow
-3.10B	-3.11B	-1.06B	-332.90M	914.30M	-37.90M
	Financing Cash Flow
1.78B	1.71B	-337.50M	-954.00M	-1.16B	328.70M

Ingersoll Rand Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 83.2 is above the 20-day moving average (MA) of 82.45, above the 50-day MA of 77.95, and below the 200-day MA of 89.43, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 83.88 is Negative, 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
ETN	80 Outperform	$126.88B	32.73	20.84%	1.28%	7.00%	16.84%
ITW	79 Outperform	$72.96B	21.92	107.62%	2.41%	-1.85%	12.04%
PH	76 Outperform	$85.73B	25.82	27.16%	1.07%	-0.23%	22.41%
IR	74 Outperform	$34.17B	41.87	8.09%	0.09%	5.27%	0.61%
EMR	73 Outperform	$71.40B	30.30	9.82%	1.66%	6.49%	24.14%
OTIS	68 Neutral	$37.62B	25.00	-33.93%	1.76%	-0.88%	9.98%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Ingersoll Rand Corporate Events

Ingersoll Rand Appoints Michelle Swanenburg to Board

On April 3, 2025, Ingersoll Rand Inc. announced the appointment of Michelle Swanenburg to its Board of Directors. Swanenburg, who is currently the head of Human Resources at T. Rowe Price, brings over twenty years of strategic HR leadership experience. Her expertise is expected to enhance Ingersoll Rand’s focus on workforce growth and innovation, aligning with their strategic imperative to deploy talent effectively. Swanenburg’s appointment is seen as a move to strengthen the company’s human capital management and corporate governance, potentially impacting its global operations and stakeholder engagement positively.