Investment Thesis
Ingersoll Rand demonstrates solid operational fundamentals with strong revenue growth of 5.7% YoY and excellent cash generation, evidenced by $1.2B in free cash flow and a healthy 15.9% FCF margin. The company maintains a fortress balance sheet with conservative leverage (0.47x Debt/Equity), strong liquidity metrics, and exceptional interest coverage of 31.1x, positioning it well for strategic investments and shareholder returns.
IR Strengths
- Robust revenue growth of 5.7% YoY combined with 43.6% gross margins demonstrates pricing power and operational efficiency
- Excellent cash conversion with $1.2B free cash flow representing 15.9% of revenue and operating cash flow of $1.4B
- Conservative capital structure with 0.47x debt-to-equity ratio, 2.06x current ratio, and 31.1x interest coverage providing financial flexibility
- Strong liquidity position with $1.2B cash and 1.49x quick ratio ensuring operational resilience
IR Risks
- Net income declined 1.3% YoY despite 5.7% revenue growth, indicating margin compression or higher below-the-line expenses requiring investigation
- Diluted EPS fell significantly by 29.6% YoY suggesting increased share dilution or higher tax burden masking operational performance
- Modest profitability returns with ROE of 5.8% and ROA of 3.2% indicate lower capital efficiency relative to equity and asset base
- High insider trading activity with 49 Form 4 filings in 90 days warrants monitoring for potential stock-based compensation dilution
Key Metrics to Watch
- Operating margin trend - monitor if 15.0% can be sustained or if compression continues
- Free cash flow conversion rate - ensure $1.2B FCF is maintained with capital discipline
- Debt/Equity ratio - track if conservative leverage is maintained despite growth investments
- Return on Equity trajectory - assess if 5.8% ROE improves toward industry benchmarks
IR Financial Metrics
IR Profitability Ratios
IR Balance Sheet & Liquidity
IR 5-Year Financial Trend
5-Year Trend Summary: Ingersoll Rand Inc.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.90 reflects profitable operations.
IR Growth Metrics (YoY)
IR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.9B | $221.6M | $0.54 |
| Q2 2025 | $1.8B | $71.2M | $0.18 |
| Q1 2025 | $1.7B | $186.5M | $0.46 |
| Q3 2024 | $1.7B | $208.3M | $0.51 |
| Q2 2024 | $1.7B | $179.5M | $0.44 |
| Q1 2024 | $1.6B | $161.1M | $0.39 |
| Q3 2023 | $1.5B | $145.1M | $0.36 |
| Q2 2023 | $1.4B | $138.5M | $0.34 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IR Capital Allocation
IR SEC Filings
Access official SEC EDGAR filings for Ingersoll Rand Inc. (CIK: 0001699150)