INGERSOLL-RAND PLC's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. INGERSOLL-RAND PLC has weak liquidity. Currently, the Quick Ratio is 0.78 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 11.56% 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||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||3385.0||3214.2|
|Net Income ($mil)||291.3||165.9|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||936.7||1083.9|
|Total Assets ($mil)||16865.6||19002.0|
|Total Debt ($mil)||3527.6||3527.3|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||33.7||33.6|
|Return on Assets||4.29||4.24|
|Return on Equity||12.15||10.95|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||265.8||288.7|
|Div / share||0.25||0.21|
|Book value / share||23.6||24.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2163103.0||1851843.0|
BUY. INGERSOLL-RAND PLC's P/E ratio indicates a premium compared to an average of 19.07 for the Machinery industry and a premium compared to the S&P 500 average of 19.99. To use another comparison, its price-to-book ratio of 2.69 indicates valuation on par with the S&P 500 average of 2.76 and a discount versus the industry average of 3.59. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount.
|IR 23.01||Peers 19.07||IR 23.37||Peers 14.38|
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 16.29||Peers 18.20||IR 0.42||Peers 1.32|
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 2.69||Peers 3.59||IR 6.56||Peers 63.70|
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 significant 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 1.32||Peers 1.67||IR 0.22||Peers 11.46|
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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