Ingersoll Rand, headquartered in Davidson, North Carolina, provides industrial solutions and flow technologies through 40+ brands, employing 18,000 people. It went public on May 12, 2017.
Based on our analysis, Ingersoll Rand has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial ratios indicate potential concerns when compared to its sector averages.
The Price-to-Earnings (PE) ratio for Ingersoll Rand stands at 40.23, significantly higher than the sector average of 19.94. A high PE ratio can suggest that a company's stock is overvalued relative to its earnings, indicating that investors may be paying too much for each dollar of earnings.
The Price-to-Book (PB) ratio of 3.58 also exceeds the sector average of 2.54. This ratio measures the company's market value relative to its book value, and a higher PB ratio often implies that investors are paying a premium for the company’s assets, potentially signaling overvaluation.
Additionally, Ingersoll Rand's Dividend Yield is notably low at 0.10, compared to the sector average of 1.70. A low dividend yield may indicate that the company is not returning much capital to shareholders, which can be a concern for income-focused investors.
While Ingersoll Rand demonstrates strong performance in metrics like net profit margin and return on equity, its elevated PE, PB ratios, and low dividend yield suggest that the current stock price may not accurately reflect its underlying value when contrasted with industry benchmarks.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Industrials
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