10Y annualized return is
very good
at 12.8% per year
IR has met or exceeded earnings expectations in
most
recent quarters (9/10)
Moderate Price-to-Earnings Ratio
Strong Price-to-Sales Ratio
Healthy Gross Profit Margin
Strong Operating Profit Margin
Minimal Debt Levels
Solid Liquidity Ratios
🏆 Strong Financial Durability
🌍 Sustainability Leadership
📈 Successful M&A Strategy
🚀 Growth Potential in Unpenetrated Markets
💡 Innovation and Product Development
💼 Strong M&A Pipeline
High Price-to-Free Cash Flow Ratio
Elevated EV/EBITDA Ratio
Moderate Net Profit Margin
Low Return on Equity
Moderate Interest Coverage
Low Free Cash Flow Yield
⚠️ Dependence on External Markets
📉 Margins Under Pressure
Overall, Ingersoll Rand shows strong business quality through financial performance, sustainability leadership, and a disciplined M&A strategy. Future prospects are promising due to growth opportunities in unpenetrated markets and ongoing innovation. However, challenges in external market dependence and margin pressures in certain segments could affect overall performance.
Analysis Date: February 14, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Ingersoll Rand Inc. is a company that makes important tools and machines used in various industries. They create products like air compressors, vacuum systems, and pumps that help move liquids and gases. Their equipment is used in places like hospitals, factories, and farms to make sure things run smoothly. Founded in 1859 and based in North Carolina, Ingersoll Rand sells its products under many well-known brand names.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$80.03
Current Market Price: $69.64
IV/P Ratio: 1.15x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
13.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for IR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (33.53)
P/B ratio ≤ 1.5 (2.76)
Current ratio ≥ 2.0 (2.29x)
Long-term debt < Net current assets (0.00x)
Margin of safety (13.0%)
IR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.33%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
42.55%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
11.59%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
A gross profit margin of 42.55% indicates that the company retains a significant portion of revenue after covering the cost of goods sold, suggesting efficient production.
An operating profit margin of 19.19% reflects effective management of operating expenses relative to revenue, indicating good operational efficiency.
With a net profit margin of 11.59%, there may be room for improvement in controlling expenses and maximizing profit from revenues.
A return on equity of 8.33% suggests that the company is not generating strong returns for shareholders, which could deter some investors.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.00x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
2.29x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The debt-to-equity ratio of 0.0003 indicates that the company has very low levels of debt, suggesting a strong financial position and reduced risk.
Current ratio of 2.29 and quick ratio of 1.71 indicate good liquidity, meaning the company can easily cover its short-term obligations.
An interest coverage ratio of 6.51, while generally healthy, suggests that the company should continue to manage its earnings to ensure it can meet interest obligations comfortably.
A free cash flow yield of 3.92% may indicate that the company is not generating sufficient cash relative to its market capitalization, which could be a concern for investors.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Ingersoll Rand demonstrated strong financial performance with double-digit adjusted EPS growth and robust free cash flow margin amidst a dynamic global market. The company achieved an adjusted EBITDA margin of 27.9%, up 190 basis points year-over-year.
Ingersoll Rand has been recognized for its commitment to sustainability, ranking number one in its industry in the Dow Jones Best-in-Class Indices and achieving the A List for global environmental leadership by CDP.
The company has successfully executed a disciplined M&A strategy, acquiring 18 companies that expanded its total addressable market by approximately $12 billion in 2024, while maintaining an average purchase multiple of less than 14 times pre-synergy adjusted EBITDA.
The company's performance has been impacted by fluctuations in key markets, especially in China where the demand has been soft, affecting order growth and overall performance.
Ingersoll Rand has significant growth opportunities in underpenetrated markets such as Latin America, the Middle East, India, and APAC, which are expected to contribute positively to revenue growth in the coming years.
The company is committed to continuous innovation, introducing new products like the PureAir oil-free compressor, which demonstrates its focus on sustainability and energy efficiency, enhancing its competitive edge.
With over 200 active targets in its M&A pipeline and the potential for 400 to 500 basis points of annualized inorganic revenue growth in 2025, Ingersoll Rand is well-positioned for continued expansion.
Despite a strong overall performance, margins in certain segments like Aerospace & Defense have faced challenges due to lower volumes and integration complexities, which may impact overall profitability.
