Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $32.16B
• Dividend Yield: 0.1%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 63.2
• Beta (1Y): 1.37
• Revenue Growth: 4.67%
• EPS Growth: -36.65%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.80
• Shares Outstanding: 397,452,500
• 10 Day Avg. Volume: 4,941,510
• 30 Day Avg. Volume: 3,383,112
• PEG Ratio: 5.22
• Price to Book (P/B): 3.58
• Price to Sales (P/S): 5.04
• P/FCF Ratio: 29.25
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 5.01
• Enterprise Value/Gross Profit: 11.46
• Enterprise Value/Ebitda: 22.43
• 1Y Price Target: $90.78
• Price Target Upside: 10.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 73 Outperform
• Price Target: $92.00 ▲(11.79% Upside)

Ingersoll Rand's overall stock score is driven by strong financial performance and a positive earnings call, highlighting increased guidance and strategic M&A activities. However, the high P/E ratio and low dividend yield suggest overvaluation, and technical indicators present mixed signals. The company needs to address profitability challenges and maintain momentum in order growth to sustain its positive outlook.

Positive Factors

Revenue Growth

Ingersoll Rand's strong revenue growth trajectory indicates robust demand for its products and services, supporting long-term business expansion and market competitiveness.

Sustainability Leadership

Leadership in sustainability enhances Ingersoll Rand's brand value and aligns with global environmental trends, potentially driving customer preference and regulatory compliance benefits.

M&A Activity

Strategic acquisitions expand Ingersoll Rand's market presence and product offerings, contributing to revenue diversification and long-term growth potential.

Negative Factors

Profitability Margins

Decreasing profitability margins suggest rising costs or pricing pressures, which could impact Ingersoll Rand's ability to sustain earnings growth and shareholder returns.

Return on Equity

A declining return on equity indicates reduced efficiency in generating profits from shareholders' equity, potentially affecting investor confidence and capital allocation strategies.

Volume Declines

Volume declines affecting margins highlight challenges in maintaining operational efficiency and profitability, which could hinder Ingersoll Rand's long-term financial performance.

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 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	3.97B
Gross Profit	3.22B	3.17B	2.88B	2.33B	1.99B	1.40B
EBITDA	1.65B	1.83B	1.65B	1.28B	1.02B	478.20M
Net Income	522.60M	838.60M	778.70M	604.70M	562.50M	-33.30M
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: Positive
• Last Price: 82.30
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 82.3 is above the 20-day moving average (MA) of 80.04, above the 50-day MA of 80.68, and below the 200-day MA of 83.59, indicating a neutral trend. The MACD of 0.31 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 75.22 is Neutral, 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	78 Outperform	43.05B	29.74	13.84%	0.65%	2.28%	7.94%
PNR	76 Outperform	17.99B	29.58	16.59%	0.89%	-0.25%	-7.32%
DOV	74 Outperform	23.04B	9.98	30.81%	1.23%	-8.23%	54.92%
IR	73 Outperform	$32.16B	63.17	5.21%	0.10%	4.67%	-36.65%
ROK	73 Outperform	38.63B	39.90	28.01%	1.53%	-8.23%	-3.29%
RRX	64 Neutral	9.55B	37.49	3.74%	0.97%	-7.88%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%