Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $30.34B
• Dividend Yield: 0.1%
• Average Volume (3M): 3.51M
• Price to Earnings (P/E): 56.7
• Beta (1Y): 1.41
• Revenue Growth: 4.20%
• EPS Growth: -34.47%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.86
• Shares Outstanding: 397,452,500
• 10 Day Avg. Volume: 3,050,118
• 30 Day Avg. Volume: 3,512,945
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $92.14
• Price Target Upside: 20.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: $86.00 ▲(12.67% Upside)

Ingersoll Rand's overall stock score is driven by strong financial performance and a positive earnings call, which highlight increased guidance and strategic acquisitions. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential bearish momentum. The company needs to address profitability challenges and improve efficiency to enhance its stock performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ingersoll Rand's products and services, supporting long-term business expansion and market presence.

Strategic Acquisitions

Strategic acquisitions enhance Ingersoll Rand's market position and diversify its revenue streams, contributing to sustainable growth and competitive advantage.

Sustainability Leadership

Leadership in sustainability aligns with global trends towards environmental responsibility, enhancing brand reputation and long-term viability.

Negative Factors

Profitability Margins

Declining profitability margins suggest challenges in cost management and pricing power, potentially impacting long-term financial health and shareholder returns.

Volume Declines

Volume declines can strain operational efficiency and profitability, indicating potential market challenges or competitive pressures that need addressing.

Free Cash Flow Growth

Declining free cash flow growth limits financial flexibility and investment capacity, potentially affecting future growth initiatives and shareholder value.

Ingersoll Rand Business Overview & Revenue Model

Company Description

Ingersoll Rand (IR) is a global leader in industrial manufacturing, specializing in air compression and related technologies. The company operates primarily in the sectors of industrial products, climate control, and specialty vehicle technologies. Core products include air compressors, power tools, and material handling equipment, along with a range of services aimed at enhancing operational efficiency and sustainability.

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	7.46B	7.24B	6.88B	5.92B	5.15B	3.97B
Gross Profit	3.26B	3.17B	2.88B	2.33B	1.99B	1.40B
EBITDA	1.66B	1.83B	1.65B	1.28B	1.02B	478.20M
Net Income	545.10M	838.60M	778.70M	604.70M	562.50M	-33.30M
Balance Sheet
Total Assets	18.19B	18.01B	15.56B	14.77B	15.15B	16.06B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.54B	1.60B	1.61B	2.11B	1.75B
Total Debt	1.40M	4.98B	2.77B	2.79B	3.48B	3.95B
Total Liabilities	8.00B	7.76B	5.72B	5.51B	6.08B	6.87B
Stockholders Equity	10.12B	10.18B	9.78B	9.20B	9.00B	9.12B
Cash Flow
Free Cash Flow	1.31B	1.25B	1.27B	765.70M	551.40M	865.60M
Operating Cash Flow	1.38B	1.40B	1.38B	860.30M	615.50M	914.30M
Investing Cash Flow	-792.80M	-3.11B	-1.06B	-332.90M	914.30M	-37.90M
Financing Cash Flow	-801.80M	1.71B	-337.50M	-954.00M	-1.16B	328.70M

Ingersoll Rand Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 76.33 is below the 20-day moving average (MA) of 78.68, below the 50-day MA of 79.87, and below the 200-day MA of 81.85, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 40.76 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
AME	―	$46.53B	31.88	14.63%	0.60%	3.67%	10.44%
DOV	―	$24.89B	11.16	15.88%	1.14%	-5.24%	45.69%
PNR	―	$17.40B	26.98	17.97%	0.94%	0.83%	-1.32%
ROK	―	$41.42B	43.22	28.46%	1.42%	-8.23%	-3.29%
RRX	―	$9.35B	36.44	3.89%	0.99%	-4.99%	22.16%
IR	―	$30.34B	56.70	5.35%	0.10%	4.20%	-34.47%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Ingersoll Rand Corporate Events

Ingersoll Rand Reports Strong Q2 2025 Results

Ingersoll Rand Inc. is a global provider of mission-critical flow creation and life sciences and industrial solutions, known for its exceptional performance and durability across various sectors. The company recently reported its second quarter 2025 results, highlighting record orders, revenues, and adjusted EBITDA, despite a reported net loss. Key financial metrics from the quarter include an 8% increase in orders to $1,940 million, a 5% rise in revenues to $1,888 million, and an adjusted EBITDA of $509 million, marking a 3% increase. The company also maintained strong liquidity with $3.9 billion available. Ingersoll Rand’s Industrial Technologies and Services segment saw a 7% rise in orders, while the Precision and Science Technologies segment experienced a 13% increase. However, the company reported a net loss due to non-cash impairments related to its minority stake in the High Pressure Solution business and other factors. Looking ahead, Ingersoll Rand is optimistic about its growth prospects, raising its full-year 2025 guidance for revenue, adjusted EBITDA, and adjusted EPS, driven by its active M&A pipeline and strategic initiatives.

Ingersoll Rand’s Earnings Call Highlights Growth and Challenges

Ingersoll Rand’s recent earnings call reflected a generally positive sentiment, driven by strong financial performance, increased guidance, and successful mergers and acquisitions (M&A). However, these positives were somewhat offset by challenges such as impairments and organic volume declines.