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Ingersoll Rand Inc. (IR)
:IR
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Ingersoll Rand
(NYSE:IR)62Neutral
Positive Factors
Acquisitions
Acquisitions remain a key driver of shareholder value.
Operational Strategy
The company's IRX strategy continues to transform operations and drive earnings even in periods of moderating organic volumes.
Negative Factors
Growth Forecast
The company has lowered its full-year 2024 organic growth guidance to a range of -2% to flat.
Market Conditions
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.
Ingersoll Rand (IR) vs. S&P 500 (SPY)
Market Cap
$32.83B
Dividend Yield0.1%
Average Volume (3M)2.61M
Price to Earnings (P/E)39.5
Beta (1Y)1.36
Revenue Growth5.22%
EPS Growth8.01%
CountryUS
Employees18,000
SectorIndustrials
Sector Strength66
IndustryIndustrial Goods
Share Statistics
EPS (TTM)2.06
Shares Outstanding403,083,250
10 Day Avg. Volume2,746,797
30 Day Avg. Volume2,606,953
Financial Highlights & Ratios
PEG Ratio4.94
Price to Book (P/B)N/A
Price to Sales (P/S)4.60
Price to Cash Flow (P/CF)15.80
P/FCF Ratio16.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$103.50Price Target Upside27.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Ingersoll Rand Business Overview & Revenue Model
Company DescriptionIngersoll Rand Inc. is a provider of mission-critical flow control and compression equipment and associated aftermarket parts,
consumables, and services. It manufactures compressor, pump, vacuum and blower products in its markets. Its segments are Industrials, Energy,
and Medical. In the Industrials segment, the company designs, manufactures, markets and services a broad range of air compression, vacuum and blower products
across a wide array of technologies and applications. In the Medical segment, it designs, manufactures and markets specialized gas, liquid and precision syringe pumps,
and compressors for use in the medical, laboratory and biotechnology end markets.
How the Company Makes MoneyIngersoll 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.85
Very Positive
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.75
Positive
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.80
Positive
| 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
Negative
81.45
Price Trends
89.85
Negative
95.40
Negative
94.21
Negative
Market Momentum
-2.64
Positive
31.28
Neutral
30.96
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 81.45 is below the 20-day moving average (MA) of 87.35, below the 50-day MA of 89.85, and below the 200-day MA of 94.21, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 30.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IR.
Ingersoll Rand Risk Analysis
Ingersoll Rand disclosed 32 risk factors in its most recent earnings report. Ingersoll Rand reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ingersoll Rand Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.96B | 22.39 | 110.24% | 2.21% | -1.30% | 20.26% | |
77 Outperform | $27.28B | 10.22 | 38.79% | 1.06% | -2.99% | 159.26% | |
75 Outperform | $86.08B | 27.66 | 24.08% | 1.00% | 0.41% | 19.76% | |
66 Neutral | $31.51B | 34.67 | 27.22% | 1.84% | -11.28% | -23.69% | |
62 Neutral | $32.83B | 39.55 | 8.40% | 0.10% | 5.22% | 8.01% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
48 Neutral | $13.36B | 45.73 | 3.38% | 3.88% | -2.63% | ― |
* Industrials Sector Average
Performance Comparison
IR
Ingersoll Rand
81.45
-8.73
-9.68%
DOV
Dover
184.06
14.97
8.85%
ITW
Illinois Tool Works
255.32
0.93
0.37%
PH
Parker Hannifin
624.90
99.18
18.87%
ROK
Rockwell Automation
267.87
-17.96
-6.28%
SWK
Stanley Black & Decker
81.45
-4.64
-5.39%
Ingersoll Rand Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -11.99% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced sentiment, with strong financial performance and significant M&A activity being offset by challenges in the Chinese market and margin pressures in specific segments.Highlights
Strong Financial Performance in 2024
Ingersoll Rand delivered double-digit adjusted EPS growth and maintained a strong free cash flow margin. Adjusted earnings per share increased by 11% for the full year compared to 2023.
Significant M&A Activity
In 2024, Ingersoll Rand acquired approximately $625 million in annualized revenue from 18 acquisitions. The company has planned additional transactions at the LOI stage and expects to acquire an additional 400 to 500 basis points of annualized inorganic revenue in 2025.
Sustainability Achievements
Ingersoll Rand was named to the Dow Jones Best-in-class Indices and the CDP's A List for global environmental leadership, indicating strong sustainability performance.
Record Adjusted EBITDA Margin
The company achieved near-record adjusted EBITDA margin of 28% in Q4 2024, driven by gross margin expansion.
Lowlights
Challenges in China
Orders and revenue in China were softer than expected, affecting overall company performance. Organic order growth was essentially flat due to timing issues with large orders.
Decline in Aerospace & Defense Segment
The Aerospace & Defense business within ILC Dover faced lower volumes and margin pressure due to the lack of large space suit contracts.
Lower PST Margins
PST segment margins declined due to the impact of lower volumes in Aerospace & Defense within ILC Dover and organic volume declines, primarily attributed to China.
Company Guidance
During the Ingersoll Rand 2024 Fourth Quarter Earnings Call, the company provided robust guidance for 2025, expecting total revenue growth between 3% and 5%, with organic growth projected at 1% to 3%. The company anticipates adjusted EBITDA in the range of $2.13 billion to $2.19 billion, with adjusted earnings per share forecasted to fall between $3.38 and $3.50, marking a 5% increase at the midpoint. Free cash flow was strong at $491 million, with liquidity standing at $4.1 billion. Ingersoll Rand plans to add 400 to 500 basis points of annualized inorganic revenue, supported by a strong M&A funnel of over 200 active targets. The guidance reflects continued operational execution and strategic investments, despite dynamic market conditions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.