Ingersoll-Rand PLC

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IR : NYSE : Industrial Goods
$91.08 | %
Today's Range: 90.33 - 91.41
Avg. Daily Volume: 1706300.0
06/23/17 - 4:01 PM ET

Financial Analysis


INGERSOLL-RAND PLC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. INGERSOLL-RAND PLC has average liquidity. Currently, the Quick Ratio is 1.01 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 13.65% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)3000.62894.1
EBITDA ($mil)334.4321.8
EBIT ($mil)247.7233.8
Net Income ($mil)117.1152.4


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1322.5612.9
Total Assets ($mil)17259.516952.5
Total Debt ($mil)4072.44472.6
Equity ($mil)6583.85792.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin33.0432.58
EBITDA Margin11.1411.11
Operating Margin8.268.08
Sales Turnover0.790.78
Return on Assets8.344.51
Return on Equity21.8913.04
Debt Q1 FY17 Q1 FY16
Current Ratio1.531.22
Debt/Capital0.380.44
Interest Expense54.056.7
Interest Coverage4.594.12


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)257.4257.3
Div / share0.40.32
EPS0.470.48
Book value / share25.5822.51
Institutional Own % n/a n/a
Avg Daily Volume1631104.01812411.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 28.15 for the Machinery industry and a discount compared to the S&P 500 average of 25.73. Conducting a second comparison, its price-to-book ratio of 3.51 indicates a premium versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 5.05. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
IR 16.34 Peers 28.15   IR 15.85 Peers 16.32

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.

 

Average. 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 valuation on par 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 17.65 Peers 22.24   IR NM Peers 1.29

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
IR 3.51 Peers 5.05   IR 93.66 Peers 23.26

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
IR 1.70 Peers 2.08   IR 2.31 Peers 12.41

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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