Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Ingersoll-Rand as such a stock due to the following factors:
- IR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $198.5 million.
- IR has traded 2.8 million shares today.
- IR is trading at a new lifetime high.
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More details on IR:
Ingersoll-Rand plc engages in the design, manufacture, sale, and service of a diverse portfolio of industrial and commercial products in the United States and internationally. The stock currently has a dividend yield of 1.2%. IR has a PE ratio of 25.1. Currently there are 4 analysts that rate Ingersoll-Rand a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for Ingersoll-Rand has been 1.9 million shares per day over the past 30 days. Ingersoll-Rand has a market cap of $19.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.52 and a short float of 0.9% with 0.90 days to cover. Shares are up 41.7% year to date as of the close of trading on Thursday.
rates Ingersoll-Rand as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 21.6%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 35.72% is the gross profit margin for INGERSOLL-RAND PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.42% trails the industry average.
- Net operating cash flow has increased to $522.30 million or 21.49% when compared to the same quarter last year. Despite an increase in cash flow, INGERSOLL-RAND PLC's cash flow growth rate is still lower than the industry average growth rate of 33.93%.
- The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.92 is somewhat weak and could be cause for future problems.
- Compared to its closing price of one year ago, IR's share price has jumped by 42.76%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Ingersoll-Rand Ratings Report.