Ingersoll-Rand Plc

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IR : NYSE : Producer Manufacturing
$91.03 -0.98 | -1.07%
Today's Range: 90.79 - 93.24
Avg. Daily Volume: 1742400.0
02/16/18 - 4:03 PM ET

Financial Analysis


INGERSOLL-RAND PLC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. INGERSOLL-RAND PLC has weak liquidity. Currently, the Quick Ratio is 0.85 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.47% 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 Q4 FY17 Q4 FY16
Net Sales ($mil)3618.13358.8
EBITDA ($mil)484.7449.1
EBIT ($mil)393.3361.6
Net Income ($mil)459.9198.8


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)1549.41714.7
Total Assets ($mil)18173.317397.4
Total Debt ($mil)4064.04070.2
Equity ($mil)7140.36643.8


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin32.532.84
EBITDA Margin13.3913.37
Operating Margin10.8710.77
Sales Turnover0.780.78
Return on Assets7.168.48
Return on Equity18.5921.72
Debt Q4 FY17 Q4 FY16
Current Ratio1.271.55
Debt/Capital0.360.38
Interest Expense53.853.8
Interest Coverage7.316.72


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)249.48259.01
Div / share0.450.4
EPS1.930.76
Book value / share28.6225.65
Institutional Own % n/a n/a
Avg Daily Volume1790699.01705509.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 81.54 for the Machinery industry and a discount compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 3.21 indicates valuation on par with the S&P 500 average of 3.26 and a significant discount versus the industry average of 5.71. The price-to-sales ratio is well 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
IR 17.83 Peers 81.54   IR 15.07 Peers 20.81

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

IR is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
IR 15.85 Peers 19.76   IR 15.92 Peers 1.69

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
IR 3.21 Peers 5.71   IR -6.36 Peers 192.95

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
IR 1.62 Peers 2.24   IR 5.09 Peers 11.16

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 significant 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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