INGERSOLL-RAND PLC's gross profit margin for the third quarter of its fiscal year 2015 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 0.66 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 8.53% 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 FY15||Q3 FY14|
|Net Sales ($mil)||3486.9||3385.0|
|Net Income ($mil)||300.9||291.3|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||651.5||936.7|
|Total Assets ($mil)||17824.1||16865.6|
|Total Debt ($mil)||4571.6||3527.6|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||34.3||33.7|
|Return on Assets||3.85||4.29|
|Return on Equity||11.61||12.15|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||268.8||265.8|
|Div / share||0.29||0.25|
|Book value / share||21.35||23.6|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2896925.0||2286881.0|
BUY. The current P/E ratio indicates a premium compared to an average of 22.58 for the Machinery industry and a value on par with the S&P 500 average of 22.01. To use another comparison, its price-to-book ratio of 2.74 indicates valuation on par with the S&P 500 average of 2.78 and a discount versus the industry average of 3.47. 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 23.50||Peers 22.58||IR 21.48||Peers 13.05|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
IR is trading at a valuation on par with 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 14.45||Peers 17.43||IR 1.67||Peers 2.54|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
IR is trading at a discount to 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 2.74||Peers 3.47||IR -9.79||Peers -9.72|
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 1.19||Peers 1.47||IR 3.65||Peers -3.38|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
IR has a sales growth rate that significantly exceeds its peers.
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