INGERSOLL-RAND PLC's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. INGERSOLL-RAND PLC has weak liquidity. Currently, the Quick Ratio is 0.79 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 10.03% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||3543.0||3398.4|
|Net Income ($mil)||305.9||317.2|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||929.8||2200.5|
|Total Assets ($mil)||17159.4||20273.7|
|Total Debt ($mil)||3562.2||4781.8|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||33.56||32.54|
|Return on Assets||3.48||4.74|
|Return on Equity||10.76||12.52|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||268.1||291.9|
|Div / share||0.25||0.21|
|Book value / share||23.81||24.3|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1823280.0||2402591.0|
BUY. INGERSOLL-RAND PLC's P/E ratio indicates a premium compared to an average of 20.93 for the Machinery industry and a premium compared to the S&P 500 average of 19.94. To use another comparison, its price-to-book ratio of 2.53 indicates valuation on par with the S&P 500 average of 2.76 and a discount versus the industry average of 3.27. The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount.
|IR 24.85||Peers 20.93||IR 19.28||Peers 15.29|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
IR is trading at a premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
IR is trading at a significant premium to its peers.
|IR 15.42||Peers 18.10||IR 0.44||Peers 1.19|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
IR is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
IR trades at a significant discount to its peers.
|IR 2.53||Peers 3.27||IR -16.56||Peers 851.03|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
IR is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, IR is expected to significantly trail its peers on the basis of its earnings growth rate.
|IR 1.28||Peers 1.62||IR -3.98||Peers 3.27|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
IR is trading at a discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
IR significantly trails its peers on the basis of sales growth
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