Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $28.09B
• Dividend Yield: 0.11%
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 1.32
• Revenue Growth: 5.22%
• EPS Growth: 8.01%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 63
• Industry: Industrial - Machinery
• EPS (TTM): 2.06
• Shares Outstanding: 403,083,250
• 10 Day Avg. Volume: 2,861,974
• 30 Day Avg. Volume: 2,790,688
• PEG Ratio: 4.23
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.51
• Price to Cash Flow (P/CF): 15.50
• P/FCF Ratio: 15.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $99.88
• Price Target Upside: 47.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Ingersoll Rand's overall stock score reflects strong financial performance and strategic investments offset by technical weaknesses and valuation concerns. The company's robust financial health and strategic M&A activities are significant strengths, while technical indicators and valuation pose challenges. Recent corporate developments provide additional strategic support.

Positive Factors

Acquisition Strategy

Acquisitions remain a key driver of shareholder value.

Earnings Growth

The company's IRX strategy continues to transform operations and drive earnings even in periods of moderating organic volumes.

Negative Factors

Customer Challenges

Customer challenges (including site readiness and capacity) are again slowing order conversion timing and the overall backdrop is choppy/lacks directional conviction.

Guidance and Forecasts

The company has lowered its full-year 2024 organic growth guidance to a range of -2% to flat.

Ingersoll Rand Business Overview & Revenue Model

Company Description

Ingersoll Rand (IR) is a global industrial company that specializes in providing mission-critical flow creation and industrial solutions. The company operates across various sectors, including air, fluid, energy, and medical technologies. Its core products and services include a wide range of industrial compressors, vacuum systems, blowers, and fluid management systems, which are essential for various industries such as manufacturing, healthcare, and energy.

How the Company Makes Money

Ingersoll Rand makes money through the sale of its industrial products and solutions, which cater to a diverse range of industries. The company's revenue model primarily involves direct sales of equipment, aftermarket services, and parts. Key revenue streams include the sale of air compressors, fluid handling systems, and related maintenance services. Ingersoll Rand also benefits from long-term customer relationships and recurring revenue through service contracts and the sale of replacement parts. Strategic partnerships and acquisitions further enhance its market reach and contribute to its earnings by expanding its product portfolio and geographical presence.

Ingersoll Rand Financial Statement Overview

Summary

Ingersoll Rand demonstrates strong financial health, with robust revenue growth and improving profitability margins. The balance sheet indicates low leverage and a strong equity base, while cash flow analysis reveals effective cash generation and conversion.

Income Statement

Ingersoll Rand has demonstrated strong and consistent revenue growth, with a noticeable increase from $5.92B in 2022 to $7.24B in TTM (Trailing-Twelve-Months) 2024. The gross profit margin improved to 42.56% in TTM 2024, reflecting efficient production and cost management. The net profit margin also increased to 11.59% in TTM 2024, indicating enhanced profitability. EBIT and EBITDA margins have shown positive trends, underscoring operational efficiency. The company's strong growth trajectory in revenue and profitability metrics positions it well above industry averages.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.0003, indicating very low leverage and financial risk. The equity ratio stands at 56.52% as of TTM 2024, showcasing a robust equity base relative to total assets. Return on equity (ROE) has improved to 8.24% in TTM 2024, demonstrating efficient use of shareholders' equity to generate profits. The company's low debt levels contribute to its financial stability, although ROE could be higher with more aggressive leverage.

Cash Flow

The company's cash flow performance is strong, with a significant free cash flow growth rate from $765.7M in 2022 to $1.38B in TTM 2024, highlighting effective cash management and operational efficiency. The operating cash flow to net income ratio is 1.67 in TTM 2024, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 1.64 further supports the company's strong cash conversion capabilities. Overall, cash flows are well-managed, supporting the company's growth and investment needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.24B	6.88B	5.92B	5.15B	4.91B
	Gross Profit
3.17B	2.88B	2.33B	1.99B	1.61B
	EBIT
1.30B	1.16B	817.30M	565.70M	85.70M
	EBITDA
1.83B	1.65B	1.31B	1.04B	686.90M
	Net Income Common Stockholders
838.60M	778.70M	604.70M	562.50M	-32.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.54B	1.60B	1.61B	2.11B	1.75B
	Total Assets
18.01B	15.56B	14.77B	15.15B	16.06B
	Total Debt
3.10M	2.77B	2.75B	3.44B	3.90B
	Net Debt
-1.54B	1.17B	1.14B	1.33B	2.15B
	Total Liabilities
7.76B	5.72B	5.51B	6.08B	6.87B
	Stockholders Equity
10.18B	9.78B	9.20B	9.00B	9.12B
Cash Flow		Free Cash Flow
1.25B	1.27B	765.70M	551.40M	865.60M
	Operating Cash Flow
1.40B	1.38B	860.30M	615.50M	914.30M
	Investing Cash Flow
-3.11B	-1.06B	-332.90M	914.30M	-37.90M
	Financing Cash Flow
1.71B	-337.50M	-954.00M	-1.16B	328.70M

Ingersoll Rand Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.94
• 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 Negative. The current price of 67.94 is below the 20-day moving average (MA) of 79.79, below the 50-day MA of 84.69, and below the 200-day MA of 92.77, indicating a bearish trend. The MACD of -1.52 indicates Negative momentum. The RSI at 41.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IR.

Ingersoll Rand Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	74 Outperform	$96.58B	25.95	20.23%	1.57%	7.25%	18.36%
ITW	74 Outperform	$66.17B	19.26	110.24%	2.62%	-1.30%	20.26%
PH	74 Outperform	$66.60B	21.40	25.87%	1.26%	0.41%	19.76%
EMR	72 Outperform	$53.33B	22.49	9.66%	2.23%	10.29%	22.72%
IR	70 Outperform	$28.09B	33.84	8.40%	0.11%	5.22%	8.01%
OTIS	68 Neutral	$37.66B	23.35	-33.93%	1.64%	0.37%	19.87%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%

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.