Following narrow-moat-rated Ingersoll Rand’s 2023 investor day on Nov. 30, we are raising our fair value estimate to $71 from $69, mostly driven by our slightly more optimistic midcycle margin assumptions.
Ingersoll Rand generates a healthy stream of recurring revenue, which accounts for roughly 36% of revenue.
The integration of Gardner Denver and former Ingersoll Rand’s industrial segment could prove more challenging and costly than management envisions, and the anticipated cost synergies from the merger could fail to materialize.
|
Metric
|
IR
|
ATCO A
|
IEX
|
|---|---|---|---|
Price/Earnings (Normalized) | 25.64 | 28.77 | 24.48 |
Price/Book Value | 3.07 | 8.62 | 4.59 |
Price/Sales | 4.44 | 4.75 | 4.73 |
Price/Cash Flow | 24.32 | 24.73 | 22.68 |
|
Metric
|
IR
|
ATCO A
|
IEX
|
|---|---|---|---|
Quick Ratio | 1.46 | 0.96 | 2.04 |
Current Ratio | 2.26 | 1.47 | 3.11 |
Interest Coverage | 7.31 | 61.74 | 16.01 |
|
Metric
|
IR
|
ATCO A
|
IEX
|
|---|---|---|---|
Return on Assets (Normalized) | 7.79% | 15.06% | 11.61% |
Return on Equity (Normalized) | 12.50% | 32.38% | 20.25% |
Return on Invested Capital (Normalized) | 10.55% | 23.07% | 14.59% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Economic Moat
|
Market Cap
|
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