Ingersoll Rand (IR) AI Stock Analysis

• Market Cap: $30.93B
• Dividend Yield: 0.1%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 37.9
• Beta (1Y): 1.25
• Revenue Growth: 5.27%
• EPS Growth: 0.61%
• Country: US
• Employees: 21,000
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Machinery
• EPS (TTM): 0.72
• Shares Outstanding: 403,083,250
• 10 Day Avg. Volume: 4,116,188
• 30 Day Avg. Volume: 3,637,364
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 11.30
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $90.50
• Price Target Upside: 14.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

Ingersoll Rand's overall stock score reflects a strong financial performance, with significant revenue growth and effective cost management. However, mixed technical indicators and a high P/E ratio suggest caution. The earnings call highlighted positive order growth and cash flow but also noted challenges in the global market and margin pressures. While the recent board appointment is a positive step, it does not significantly impact the stock score.

Positive Factors

Acquisitions

Total company orders were up 10%, highlighting the benefit of the company's acquisition flywheel strategy.

Earnings

Despite a moderating organic growth environment, the company delivered year-over-year margin expansion of 170 basis points in the quarter.

Market Position

IR is a global market leader with a broad range of mission-critical flow creation technologies increasing industrial productivity and efficiency.

Negative Factors

Guidance

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

International Exposure

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.

Order Conversion

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

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 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 presents a strong financial profile with significant revenue and profit growth, improved leverage ratios, and robust cash flow generation. The company is well-positioned within the Industrial - Machinery sector, showing effective cost management and operational efficiency. While there are minor areas for improvement in cash flow growth, the overall financial health remains strong and promising.

Income Statement

Ingersoll Rand has demonstrated strong revenue growth with consistent increases over the years, particularly a notable increase from 2022 to the TTM. The gross profit margin remains healthy, indicating effective cost management. The net profit margin and EBIT margin are robust, reflecting strong operational efficiency. However, EBITDA margins have slightly decreased in TTM compared to the previous annual period, suggesting potential areas for cost optimization.

Balance Sheet

The company maintains a solid equity ratio, showcasing financial stability. The debt-to-equity ratio has improved significantly in the TTM, indicating reduced leverage risk which is a positive signal for investors. ROE is strong, reflecting efficient use of equity to generate profits. Overall, the balance sheet exhibits a solid foundation with manageable liabilities and increasing equity.

Cash Flow

Operating cash flow has shown consistent growth, supporting the company's liquidity position. The free cash flow has also increased, indicating that the company effectively converts revenue into cash. The operating cash flow to net income ratio is high, suggesting good cash conversion efficiency. However, the free cash flow growth rate has slowed slightly in the TTM, which could suggest a need for monitoring future liquidity trends.

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
1.79B	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
4.81B	2.77B	2.75B	3.44B	3.90B
	Net Debt
3.27B	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: Neutral
• Last Price: 79.23
• 50DMA: Positive
• 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 Neutral. The current price of 79.23 is above the 20-day moving average (MA) of 74.38, above the 50-day MA of 77.86, and below the 200-day MA of 90.59, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IR.

Ingersoll Rand Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETN	81 Outperform	$116.65B	30.14	20.84%	1.28%	7.00%	16.84%
EMR	76 Outperform	$61.08B	25.76	9.82%	1.92%	6.49%	24.14%
PH	76 Outperform	$79.71B	23.83	27.16%	1.05%	-0.23%	22.41%
ITW	74 Outperform	$70.28B	21.20	107.62%	2.46%	-1.85%	12.04%
OTIS	70 Outperform	$37.96B	25.55	-33.93%	1.60%	-0.88%	9.98%
IR	69 Neutral	$30.93B	37.93	8.09%	0.10%	5.27%	0.61%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%

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.