Ingersoll Rand Inc. (IR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Ingersoll Rand Inc.

Updated on October 31, 2026 · accounts published on October 29, 2026

A high-margin industrial that turns profit into cash

Ingersoll Rand trades at a P/E of 22.5 over the last 12 months, 13 % below its sector median of 25.8, with operating margins at a 12-year high.

• Is Ingersoll Rand expensive or cheap? Its P/E of 22.5 is 13 % below the 25.8 sector median and far below its own 8-year average of 77.5.
• How is the business doing? Operating margin reached 26 % over the last 12 months, against a 9 % average for fiscal 2014-2025.
• How strong is the balance sheet? Net debt was 2.3× EBITDA in fiscal 2025, under the 3.0× healthy ceiling, and equal to just 12 % of the share price.
• What to expect from the next earnings? Next results are due February 11, 2027; analysts expect EPS of $1.02, below the $1.07 reported on October 29, 2026.
• Does it turn margin into cash, and at what cycle multiple does it trade? Free cash flow was 210 % of net income in fiscal 2025, far above the 85 % this sector treats as healthy.

Is Ingersoll Rand expensive or cheap?

Over the last 12 months Ingersoll Rand trades at a P/E of 22.5, 13 % below the 25.8 median of 297 sector peers and well under its 8-year average of 77.5. That old average likely reflects years of much thinner margins. EV/EBITDA tells the same story: 14.3× against a 7-year average of 24.8×. Both sit below 90 % of their own history, the line this sector uses for cheap. The free cash flow yield is 4.0 %. The shares are up only 2 % in 12 months and trade 19 % below their 52-week high of $98.76.

How is the business doing?

Revenue grew 5.7 % over the last 12 months, and revenue per share compounded 13 % a year from 2020 to 2025, more than double the 6 % this sector treats as healthy. Profitability has stepped up sharply. The operating margin is 26 % over the last 12 months, after 19 % in fiscal 2025, already the best of 12 years, and a 9 % average for 2014-2025. The weak spot is EPS, down 30 % year on year over the same 12 months, so the higher margins have not yet reached per-share earnings. ROIC of 11.0 % beats the 9.1 % sector median by 1.9 points.

How strong is the balance sheet?

In fiscal 2025 Ingersoll Rand carried net debt of $9.68 per share ($12.82 of debt minus $3.14 of cash). That is about 12 % of the current price and 2.3× EBITDA, inside the 3× limit considered healthy for industrials. Debt to equity of 0.45 and a current ratio of 1.69 over the last 12 months point to a comfortable position, and the Altman Z of 3.4 sits in the safe zone above 2.99. Shareholders get little in cash: the dividend yields 0.1 % and the payout was 5 % of fiscal 2025 earnings, so almost all profit stays in the business.

What to expect from the next earnings?

On October 29, 2026 Ingersoll Rand reported EPS of $1.07 against $0.90 expected. The 18.5 % surprise was the largest of the last eight quarters, and the company has beaten EPS estimates in 5 of those 8. Analysts have barely moved since. The 2026 EPS consensus went from $3.54 to $3.55 over the last 30 days among 7 analysts, and revenue estimates are also flat. Of 15 analysts covering the company, 8 recommend buying, 7 holding and none selling. For the quarter due February 11, 2027, the bar is $1.02 of EPS.

Does it turn margin into cash, and at what cycle multiple does it trade?

Industrials are semi-cyclical, so one good year of profit can mislead. Investors check whether operating margin turns into cash and what multiple the market pays across the cycle. Ingersoll Rand passes both tests: free cash flow covered 210 % of net income in fiscal 2025, and cycle-adjusted EV/EBITDA of 14.3× sits below its 7-year average. Two metrics miss. ROIC of 11.0 % over the last 12 months is under the 15 % healthy bar and has not topped 10 % in any fiscal year from 2016 to 2025. Capex was 1.8 % of revenue in fiscal 2025, below the usual 4 % to 8 % range. That low capex flatters cash conversion and is worth watching.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.