IR
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IR Stock AI Analysis

ESEN AI analysis of IR stock updated every 12 hours.

ESEN Institutional Analysis

IR Systematic Research

Ingersoll Rand Inc operates in the machinery sector with a $32.6 billion market cap, yet presents a valuation profile that systematic screening flags as premium relative to profitability metrics. The company trades at a P/E ratio of 55.59, substantially elevated given an ROE of just 5.8% and net margin of 7.54%. This disconnect becomes more pronounced considering EPS contracted 26.22% year-over-year to $1.48, while revenue advanced a modest 6.86%, indicating margin compression pressures within the operating framework.

The balance sheet demonstrates relative stability with notable strengths:

  • Debt-to-equity ratio of 0.47 positions the capital structure conservatively within industrial machinery standards
  • Current ratio of 2.06 signals adequate short-term liquidity coverage
  • Gross margin of 43.22% reflects pricing power in core industrial flow control and compression solutions

Profitability metrics reveal operational challenges, however. The ROI of 3.94% and ROA of 3.23% lag typical industrial machinery benchmarks, while the operating margin of 14.55% suggests room for efficiency improvements. The elevated P/B ratio of 3.1 against book value per share of $25.8 implies market expectations for margin recovery that current fundamentals do not yet support.

Relative to machinery peers including Parker-Hannifin (PH), Illinois Tool Works (ITW), and Dover Corporation (DOV), Ingersoll Rand's beta of 1.16 indicates slightly above-market volatility. The stock currently trades at $83.38, approximately 17% below its 52-week high of $100.96, with research models highlighting the valuation-to-profitability gap as the primary analytical consideration for systematic fundamental screens.

Analysis updated monthly based on systematic screening of fundamentals, profitability, growth, and peer positioning.

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