$96.78
arrow_drop_down0.89%Is IR a Buy or Sell based on AI Analysis?
Fundamental Analysis
Ingersoll-Rand PLC has a strong operating margin of 19.85%, indicating the company's ability to generate profits from its operations. The company also has a healthy return on equity of 8.22%, showing that it efficiently utilizes shareholder funds to generate earnings. Additionally, with a debt-to-equity ratio of 0.3, Ingersoll-Rand PLC has a low level of debt relative to its equity, indicating a conservative financial structure. Furthermore, the company's free cash flow margin of 18.5% reflects its ability to generate cash after accounting for operating expenses and capital expenditures. Lastly, Ingersoll-Rand PLC's revenue growth of 16.22% highlights its ability to increase sales over time, demonstrating a positive trajectory for the company's financial performance. In conclusion, Ingersoll-Rand PLC shows strong fundamentals with a solid operating margin, healthy return on equity, low debt-to-equity ratio, strong free cash flow margin, and consistent revenue growth. These indicators suggest that the company is financially sound and well-positioned for future growth and profitability. Investors may find Ingersoll-Rand PLC to be a promising investment opportunity based on its strong fundamental analysis and positive financial outlook.
Positive Development
Ingersoll Rand's social-responsibility score jumped 12.6 points from a year earlier to 64.1, good for a ranking of 45th for the category, the company's highest rank in any of the five components. This demonstrates the company's commitment to ethical and sustainable business practices, which could attract investors and enhance its reputation. The company declared a regular quarterly cash dividend of $0.02 (two cents) per share of common stock, which indicates the company's financial stability and commitment to shareholder returns. The company's stock price has consistently risen over the past weeks, indicating investor confidence in the company's performance and future prospects.
Negative Development
The company's operating margin is relatively low, indicating that the company might be struggling to manage its expenses effectively. The company's long-term debt to total asset and long-term debt to total equity ratios are relatively high, indicating a potential financial risk. The company's current ratio and quick ratio are relatively low, which suggests that the company might have difficulty meeting its short-term obligations.
Technical Analysis
Ingersoll-Rand PLC (IR) is currently showing a "SELL" technical rating based on various indicators. The stock has a beta of 1.44, indicating that it is more volatile compared to the overall market. Additionally, the stock has a trailing P/E ratio of 48.23 and a forward annual dividend yield of 0.09%. The company's technical analysis shows that there are more sell indicators (4) than buy indicators (1), with technical indicators such as RSI, CCI, WILLR, and STOCHRSI all signaling a sell. Despite the sell signals in the technical analysis, Ingersoll-Rand PLC has shown positive price performance in the short term, with a seven-day price change percent of 1.34%. The stock has also demonstrated strong price growth over longer periods, with one-month, three-month, and six-month price change percentages of 10.38%, 27.07%, and 33.72% respectively. Furthermore, the stock has seen significant price appreciation over the past five years, with a five-year price change percent of 239.25%. Investors may want to closely monitor the stock's technical indicators and price performance to make informed investment decisions.
Conclusion and recommendation
Ingersoll-Rand PLC, a leading industrial company in the industrials sector, has shown strong performance over the past year with a market value of $36.93B and a positive year-to-date price change of 19.3%. Despite a recent dip in stock price, the company's technical indicators suggest a sell signal, with multiple indicators pointing towards a downward trend. Additionally, with a P/E ratio of 48.17 and a high price-to-cashflow ratio of 26.84, investors may want to approach with caution as these metrics indicate a potentially overvalued stock. Looking at the company's financial health, Ingersoll-Rand PLC has a solid balance sheet with a current ratio of 2.22 and a quick ratio of 1.67, indicating a strong ability to meet short-term obligations. However, with a debt-to-equity ratio of 0.3, the company does have some leverage that investors should be mindful of. In conclusion, while Ingersoll-Rand PLC has shown strong growth over the past few years and operates in a stable industry, investors should consider the technical sell signals and high valuation ratios before making any investment decisions. It may be prudent to wait for a more favorable entry point or further analysis of the company's financials before committing capital.