Valuation method | Value, $ | Upside, % |
---|---|---|
Artificial intelligence (AI) | 60.73 | -30 |
Intrinsic value (DCF) | 4.31 | -95 |
Graham-Dodd Method | 14.23 | -84 |
Graham Formula | 27.24 | -69 |
Ingersoll Rand Inc. (NYSE: IR) is a global leader in mission-critical air, fluid, energy, and specialty vehicle technologies, serving diverse industries such as medical, industrial manufacturing, water and wastewater, and food and beverage. Operating through its Industrial Technologies and Services and Precision and Science Technologies segments, the company provides high-performance compression, vacuum, fluid transfer, and precision pumping solutions under renowned brands like Gardner Denver, Club Car, and Thomas. With a legacy dating back to 1859, Ingersoll Rand has built a strong reputation for innovation and reliability, supported by a vast distribution network of direct sales and independent distributors. Headquartered in Davidson, North Carolina, the company serves customers across the U.S., Europe, the Middle East, Africa, and Asia Pacific, positioning itself as a key player in the industrial machinery sector. Its diversified product portfolio and aftermarket services ensure recurring revenue streams, reinforcing its competitive edge in critical industrial applications.
Ingersoll Rand presents a compelling investment case due to its diversified industrial exposure, strong brand portfolio, and recurring revenue from aftermarket services. The company’s $32.4B market cap and $7.2B revenue reflect its leadership in mission-critical industrial solutions. However, its 1.42 beta suggests higher volatility relative to the market, and its $4.8B total debt warrants monitoring. With a diluted EPS of $2.06 and robust operating cash flow of $1.4B, IR demonstrates solid profitability, though its modest dividend yield (0.08 per share) may not appeal to income-focused investors. Growth prospects are supported by demand for energy-efficient and precision technologies, but macroeconomic headwinds in industrial spending could pose risks.
Ingersoll Rand holds a competitive advantage through its broad product portfolio, strong aftermarket services, and global distribution network. Its acquisition of Gardner Denver in 2020 expanded its industrial technologies segment, enhancing its capabilities in air compression and fluid handling. The Precision and Science Technologies segment benefits from specialized applications in medical and laboratory markets, where high reliability is critical. IR’s multi-brand strategy allows it to address niche markets while maintaining economies of scale. However, competition is intense in industrial machinery, with rivals like Atlas Copco and Xylem offering similar technologies. IR’s focus on energy-efficient solutions (e.g., compressed air systems) differentiates it, but pricing pressure and supply chain dependencies remain challenges. Its $1.5B cash position provides flexibility for M&A to bolster technological edges.