Ingersoll Rand Inc. (IR) stock analysis

P/E below its 5-year median

Ingersoll Rand's P/E of 24.0 is below its own 5-year median of 41.4.

P/E below the industry

Ingersoll Rand's P/E of 24.0 is below the General Industrial Machinery and Equipment median of 26.9.

EV/EBITDA below its 5-year median

Ingersoll Rand's EV/EBITDA of 15.1 is below its 5-year median of 30.7.

P/B above the industry

Ingersoll Rand's price-to-book of 3.11 is above the General Industrial Machinery and Equipment median of 2.84.

Trading below fair value

The share price of $85.08 is below our fair value estimate of $125.83.

Margin of safety over 20%

The price is 32.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -0.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 8.0% over the last twelve months; the General Industrial Machinery and Equipment median is 12.4%.

Guidance raised

Ingersoll Rand raised its Full Year 2026 Revenue Growth outlook on Jul 30, 2026.

Gross margin slipping

Gross margin was 43.1% over the last twelve months, against 43.7% a year earlier.

Return on equity under 15%

Return on equity was 13.4% over the last twelve months and averaged 7.0% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Ingersoll Rand's return on equity of 13.4% is above the General Industrial Machinery and Equipment median of 9.9%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 17.2% over the last twelve months, against a 5-year average of 10.3%.

Net margin above the industry

Ingersoll Rand's net margin of 17.2% is above the General Industrial Machinery and Equipment median of 8.0%.

High debt

Debt is 45.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 42.8% five years ago to 45.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.7% of total debt.

Interest well covered

Operating income covers interest expense 7.2 times.

Short-term assets cover short-term debts

Current assets are 1.69 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.63; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Ingersoll Rand paid dividends worth 0.1% of the share price over the last twelve months.

Yield below Treasuries

The 0.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Ingersoll Rand yields 0.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 2.2% of net income.

Covered by free cash flow

Dividends take 2.0% of free cash flow.