A strong performer from today's afternoon trading session is Ingersoll Rand, whose shares rose 1.4% to $78.38 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
Ingersoll Rand's Valuation Is in Line With Its Sector Averages:
Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, and medical technologies services and solutions worldwide. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03 and an average price to book (P/B) ratio of 2.89. In contrast, Ingersoll Rand has a trailing 12 month P/E ratio of 58.1 and a P/B ratio of 3.06.
Ingersoll Rand has moved -25.9% over the last year compared to 14.4% for the S&P 500 — a difference of -40.3%. Ingersoll Rand has a 52 week high of $106.03 and a 52 week low of $65.61.
Wider Gross Margins Than the Industry Average of 36.97%:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,018 | $3,973 | $5,152 | $5,916 | $6,876 | $7,235 |
| Gross Margins | 39% | 35% | 39% | 39% | 42% | 44% |
| Net Margins | 8% | -1% | 11% | 10% | 11% | 12% |
| Net Income (M) | $159 | -$33 | $562 | $605 | $779 | $839 |
| Net Interest Expense (M) | $88 | $111 | $88 | $103 | $157 | $209 |
| Depreciation & Amort. (M) | $105 | $335 | $333 | $348 | $368 | $365 |
| Diluted Shares (M) | 209 | 383 | 421 | 410 | 409 | 407 |
| Earnings Per Share | $0.76 | -$0.09 | $1.34 | $1.47 | $1.9 | $2.06 |
| EPS Growth | n/a | -111.84% | 1588.89% | 9.7% | 29.25% | 8.42% |
| Free Cash Flow (M) | $305 | $872 | $564 | $771 | $1,272 | $1,248 |
| CAPEX (M) | $38 | $42 | $64 | $95 | $105 | $149 |
| Total Debt (M) | $3,208 | $7,718 | $3,441 | $2,753 | $2,724 | $4,758 |
| Net Debt / EBITDA | 9.03 | 15.12 | 1.48 | 0.98 | 0.74 | 1.93 |
| Current Ratio | 2.69 | 2.58 | 2.8 | 2.37 | 2.22 | 2.29 |
Ingersoll Rand has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and an excellent current ratio of 2.29. The company also benefits from wider gross margins than its peer group, a strong EPS growth trend, and healthy leverage levels.
