1.19 | 2.09%
INGERSOLL-RAND PLC's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. INGERSOLL-RAND PLC has weak liquidity. Currently, the Quick Ratio is 0.74 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 remained unchanged 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.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 3112.4 | 3150.7 |
| EBITDA ($mil) | 325.7 | 314.9 |
| EBIT ($mil) | 231.0 | 216.9 |
| Net Income ($mil) | 88.0 | 95.6 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 832.9 | 1089.5 |
| Total Assets ($mil) | 18593.3 | 18910.5 |
| Total Debt ($mil) | 3236.2 | 3644.9 |
| Equity ($mil) | 7261.0 | 7207.9 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 33.01 | 31.98 |
| EBITDA Margin | 10.46 | 9.99 |
| Operating Margin | 7.42 | 6.88 |
| Sales Turnover | 0.75 | 0.78 |
| Return on Assets | 5.43 | 2.73 |
| Return on Equity | 14.07 | 7.85 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 1.23 | 1.31 |
| Debt/Capital | 0.31 | 0.34 |
| Interest Expense | 61.0 | 69.4 |
| Interest Coverage | 3.79 | 3.13 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 299.6 | 298.6 |
| Div / share | 0.21 | 0.16 |
| EPS | 0.31 | 0.31 |
| Book value / share | 24.24 | 24.14 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 2048044.0 | 1998514.0 |
BUY. INGERSOLL-RAND PLC's P/E ratio indicates a discount compared to an average of 20.01 for the Machinery industry and a value on par with the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 2.35 indicates valuation on par with the S&P 500 average of 2.44 and a discount versus the industry average of 3.19. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, INGERSOLL-RAND PLC proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| IR 17.28 | Peers 20.01 | IR 13.99 | Peers 21.12 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. IR is trading at a discount to its peers. |
Discount. 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| IR 13.54 | Peers 20.51 | IR 1.90 | Peers 5.73 | |||||||||||||||||||||
|
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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| IR 2.35 | Peers 3.19 | IR 90.17 | Peers 9.99 | |||||||||||||||||||||
|
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. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. IR is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| IR 1.22 | Peers 1.41 | IR -4.52 | Peers 4.59 | |||||||||||||||||||||
|
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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