Ingersoll Rand Could Be 15% Undervalued Ahead of Earnings

Simply Wall St··Read original
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Ingersoll Rand is trading at a potential 15.4% discount to a fair value estimate of $93.20 as its fiscal second quarter earnings approach, with analysts projecting diluted earnings of $0.80 per share. The company's aftermarket revenue has grown to 37% of total revenue, supporting margin stability and recurring income. However, the stock carries a price-to-earnings ratio of 52.6 times, well above the US Machinery industry average of 26.8 times and a modeled fair ratio of 38.4 times, which could limit upside if growth disappoints. Risks include margin disruption from acquisitions and shifting trade policies.

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Ingersoll Rand Inc
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Analyst fair value estimate suggests 15% upside ahead of earnings, with aftermarket revenue supporting margins.