Ingersoll Rand Inc. (IR) Fundamental Checkup
Ingersoll Rand Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 7, 2026.
By TGMCharts Research · Data as of · Updated
Ingersoll Rand Inc. gets a balanced fundamental read when revenue growth of 9.56%, EPS growth of 11.01%, free-cash-flow growth of 8.43%, net margin of 12.08%, and ROIC of 6.34% support the same story.
The checkup weighs operating growth, shareholder conversion, cash conversion, reinvestment quality, and balance-sheet flexibility. Current ratio is 1.62x and debt-to-equity is 0.47x, so the balance-sheet read is part of the final view rather than a footnote.
- Ingersoll Rand Inc. has market cap of $34.03B and closed at $86.97 on August 7, 2026.
- Five-year revenue CAGR is 9.56% and five-year EPS CAGR is 11.01%.
- Five-year free-cash-flow CAGR is 8.43%.
- Net margin is 12.08% and ROIC is 6.34%.
- Current ratio is 1.62x and debt-to-equity is 0.47x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
An Integrated Financial Assessment of Ingersoll Rand
Evaluating the long-term viability of Ingersoll Rand Inc. requires examining the alignment between its top-line expansion, cash generation, capital efficiency, and market pricing. As of August 7, 2026, the equity closed at $86.97, representing a market capitalization of $34.03B. This fundamental research note evaluates whether the underlying financial metrics validate this valuation or suggest emerging operational friction.
A multi-year view reveals a strong baseline, with a five-year revenue CAGR of 9.56% and a five-year EPS CAGR of 11.01%. However, over this same five-year horizon, the free cash flow CAGR of 8.43% signals that cash generation has expanded at a slightly slower pace than net income. This divergence warrants a deeper look into the quality of the company's earnings conversion and balance sheet structure.
Current compounder snapshot · IR
Live supporting context; not part of the article's frozen 2026-08-07 evidence snapshot.
- Score
- 9/100
- 10Y CAGR
- 13.7%
- Median YoY
- 11.2%
- YoY volatility
- σ 36.6pp· choppy
- Quarters ≥ 20%
- 9 of 40
- Negative quarters
- 6
- Valuation vs own 10Y history
- P/S 4.3x · 10Y median 4.0x · 61st percentile · as of Aug 7, 2026
How this score is computed
- Quarters at or above 20%: 9 of 40 → 9 of 40 pts
- Steadiness (typical swing 36.6pp) → 0 of 25 pts
- Pace (median 11.2% YoY) → 0 of 20 pts
- Latest quarter (8.5% YoY) → 0 of 15 pts
- Score: 9 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Industrial Sector Context and Core Operational Performance
Operating within the Industrials sector, the company must balance cyclical demand with capital allocation efficiency. Analyzing the business through a unified framework of growth, margin performance, and leverage helps isolate structural operational improvements from broader macroeconomic tailwinds. The exhibits below provide the quantitative foundation for this assessment.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
IR revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 9.56%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 9.56% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Top Line Expansion and Per Share Profitability Trends
The relationship between sales expansion and per-share profitability indicates how effectively the organization translates business activity into shareholder returns. The five-year revenue CAGR of 9.56% shows consistent top-line growth. Crucially, the five-year EPS CAGR of 11.01% outpaces revenue growth, indicating that the business has successfully expanded its profitability per share over the medium term.
While the long-term trend remains positive, short-term variations in operating leverage can influence this relationship. When earnings grow faster than sales, it typically points to operating efficiency, share repurchases, or structural shifts in the product mix. The next step is to verify if cash generation confirms these accounting profits.
IR EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 11.01%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 11.01% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Evaluating Free Cash Flow Quality Against GAAP Income
Accounting profits can occasionally diverge from actual cash generation. The company's five-year free cash flow CAGR of 8.43% confirms a solid multi-year trajectory of cash expansion. However, a potential point of caution lies in the trailing twelve-month data, where free cash flow has recently trended downward, contrasting with the upward trajectory of net income. This near-term divergence highlights the importance of monitoring working capital dynamics.
If cash generation continues to lag net income over consecutive quarters, it may indicate rising inventory levels, slower customer collections, or elevated capital expenditures. Analyzing the cash conversion cycle helps determine whether the recent cash flow decline is a temporary timing mismatch or a structural headwind.
IR free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 8.43%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 8.43% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Profit Margins and Return on Invested Capital Analysis
Operational quality is demonstrated by the company's ability to maintain high returns on its investments. Currently, the company reports a net margin of 12.08%, demonstrating its ability to retain a significant portion of its revenues as profit. This margin profile supports the elevated EPS growth observed over the five-year period.
Complementing this, the return on invested capital (ROIC) stands at 6.34%. While this return is positive, it suggests that the capital-intensive nature of the industrial operations requires ongoing investment to sustain growth. Comparing this return against the company's cost of capital is essential to confirm that expansion is actively compounding shareholder value.
IR net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 12.08%. The bars below are annual fiscal years.
Net margin of 12.08% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
IR ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 6.34%.
ROIC of 6.34% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity Position and Debt Leverage Guardrails
Financial flexibility provides the necessary buffer to navigate economic downturns and fund strategic initiatives. The company maintains a current ratio of 1.62x, pointing to a solid short-term liquidity position. This indicates that liquid assets are sufficient to cover obligations maturing within the year.
From a leverage perspective, the debt-to-equity ratio is 0.47x. This moderate level of debt relative to equity suggests a balanced capital structure. By avoiding excessive leverage, the business preserves its capacity to access debt markets if operational needs or acquisition opportunities arise.
IR debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.47x.
Debt-to-equity of 0.47x and current ratio of 1.62x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Multiples and Implied Growth Expectations
The valuation multiples assigned by the market reflect the consensus expectations for future growth. The stock currently trades at a trailing price-to-earnings (P/E) ratio of 35.79x, which corresponds to an earnings yield of 2.79%. This multiple indicates that investors are pricing in continued strong operational execution.
Furthermore, comparing the market price to independent valuation benchmarks reveals that the current price of $86.97 is above the analyst DCF (FMP) reference value. This suggests a negative margin of safety relative to that specific model, meaning the market is demanding high operational performance to justify the current valuation.
IR Price Chart
Latest close: $86.97 as of August 7, 2026.
The close at $86.97 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Key Structural Strengths and Potential Operational Risks
The primary positive thesis for the company rests on its consistent historical growth, characterized by a revenue CAGR of 9.56% and an EPS CAGR of 11.01%, supported by a healthy net margin of 12.08%. The moderate debt-to-equity ratio of 0.47x also ensures the capital structure remains resilient.
Conversely, the main risk to this outlook is the recent divergence where trailing twelve-month free cash flow has fallen while net income has risen. If this cash flow weakness persists, it could constrain future reinvestment. Additionally, the high P/E ratio of 35.79x leaves little room for operational missteps.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 9.56% and five-year EPS CAGR of 11.01% support the business case.
- Net margin of 12.08% and ROIC of 6.34% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 8.43% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.47x and current ratio of 1.62x are the balance-sheet checks that can change the view.
Synthesis of the Fundamental Research Outlook
In conclusion, the company presents a robust historical growth profile with solid profit margins and a disciplined balance sheet. However, the premium valuation implied by the P/E ratio of 35.79x and the recent soft trend in trailing free cash flow suggest that close monitoring is required. A future reassessment would be triggered by a shift in cash flow conversion or a material change in the current debt-to-equity ratio of 0.47x.
FAQ
What is the fundamental read on IR?
Ingersoll Rand Inc. is judged through revenue growth of 9.56%, EPS growth of 11.01%, free-cash-flow growth of 8.43%, net margin of 12.08%, and ROIC of 6.34%.
Which IR fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this IR checkup refresh?
Its figures are as of August 7, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 9.56%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 11.01%.
- ROIC or balance-sheet flexibility weakening from ROIC of 6.34% and debt-to-equity of 0.47x.
The bottom line
Ingersoll Rand Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is Ingersoll Rand Inc. (IR) Fairly Valued?Valuation on Ingersoll Rand Inc. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-31 · period 2026-06-30 · SEC EDGAR source
- “In addition to our consolidated GAAP financial measures, we review various non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income and Free Cash Flow.”
- “We believe Adjusted EBITDA and Adjusted Net Income are helpful supplemental measures to assist us and investors in evaluating our operating results as they exclude certain items whose fluctuation from period to period do not necessarily correspond to changes in the operations of our business.”
- “Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation, amortization and certain non-cash, non-recurring and other adjustment items.”
- “Adjusted Net Income is defined as net income (loss) including interest, depreciation and amortization of non-acquisition related intangible assets and excluding other items used to calculate Adjusted EBITDA and further adjusted for the tax effect of these exclusions.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.