Ingersoll-Rand: Good Exposures, But Not So Much Value
Stephen Simpson, CFA
Stephen Simpson, CFA
Investors Have Bought Ingersoll Rand's Sizzle, Can It Deliver The Steak?
Stephen Simpson, CFA
Stephen Simpson, CFA
Yesterday, 5:30 PM
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Wed, Jul. 13, 1:10 PM
- Ingersoll-Rand (IR +0.9%) is initiated with an Outperform rating and $80 price target at BMO Capital, which predicts a higher level of organic growth and strong margin expansion at the company.
- BMO points to a reasonably valued stock, huge upside potential for returns, and HVAC orders and backlog that provide strong visibility through 2017.
- The firm says new products are energizing growth, and management's focus on lean initiatives and structurally improving its operating processes, are "systematically transforming" IR's profitability.
Tue, Apr. 26, 6:31 AM
Mon, Apr. 25, 5:30 PM
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Wed, Apr. 6, 7:41 AM
Mon, Mar. 28, 11:49 AM
- Parker-Hannifin (PH -0.7%) is downgraded to Sell from Neutral, and Ingersoll-Rand (IR -0.7%) is lowered to Neutral from Buy at Goldman Sachs, which says the multi-industry group is now trading at a 12% premium to the S&P compared to its typical 5% premium.
- The firm, which has a $92 price target on PH shares, believes investors are pricing in a recovery that it does not expect to materialize, while IR is trading above historical averages at 15.4x P/E; it has a $64 target on IR shares.
- Goldman's top picks in the group are Honeywell (HON +0.1%) and Illinois Tool Works (ITW -0.1%), with respective stock price targets of $126 and $110.
Mon, Mar. 14, 7:40 AM
- Ingersoll-Rand (NYSE:IR) shares could return nearly 20% over the next year, according to Barron's, as the company avoids the extensive exposure to the oil sector that other industrial rivals face.
- At 15x forward earnings estimates, Ingersoll carries a lower valuation than peers and remains undervalued relative to the broad stock market and rivals.
- "We've been a top quartile organic grower among industrials over the past few years," Chief Executive Mike Lamach told Barron's this past week. "Our markets have plenty of room to expand, and maintenance is now 40% of our business - double what it was a decade ago."
- IR +1.6% premarket
Mon, Mar. 7, 9:22 AM
- Ingersoll-Rand (NYSE:IR) heads into the green prior to the opening bell following an upgrade from Nomura.
- The firm raised its rating on the stock from Neutral to Buy, with a price target of $68 (previously $56)
- IR +0.3% premarket
Tue, Feb. 9, 8:47 AM
- Net income of $233.5M, or $0.88 per share vs. $255.5M, or $0.95 per share, for the same period last year. Adjusted EPS from continuing operations of $0.94.
- Revenue by segment: Climate +2%; Industrial +25%.
- Adjusted operating margin of 13.8% (excluding restructuring costs).
- Repurchased approximately 4.4M shares for approximately $250M.
- Q1 guidance: Organic revenues to increase 3-5% compared with the same quarter of 2015. Adjusted EPS from continuing operations of $0.33 to $0.38.
- Full-year guidance: Organic revenues to increase 2-4% compared with 2015. Adjusted EPS from continuing operations of $3.80 to $4.00.
- Q4 results
Tue, Feb. 9, 6:36 AM
Mon, Feb. 8, 5:30 PM
Wed, Feb. 3, 6:36 AM
- Ingersoll-Rand (NYSE:IR) declares $0.32/share quarterly dividend, 10.3% increase from prior dividend of $0.29.
- Forward yield 2.62%
- Payable March 31; for shareholders of record March 11; ex-div March 9.
Dec. 21, 2015, 7:18 AM
- Ingersoll-Rand (NYSE:IR) says it will sell its remaining equity interest in Hussmann Parent as part of a transaction in which Panasonic (OTCPK:PCRFY) is acquiring 100% of Hussmann's shares.
- The company expects to receive net proceeds of approximately $400M from transaction, which is anticipated to close in the first half of 2016.
- Previously: Panasonic to take stake in Hussmann (Dec. 21 2015)
Nov. 20, 2015, 11:30 AM
- Market growth remains challenging whether there is an industrial recession or not, so investors should focus on stocks with strong end markets, particularly Allegion (ALLE +0.3%) and Danaher (DHR +0.5%), Bernstein's Steven Winoker says.
- Other stocks in a lower but still generally favorable tier include General Electric (GE +0.8%), Honeywell (HON +0.9%), Ingersoll-Rand (IR +0.9%) and 3M (MMM +0.7%), as these companies are exposed to favorable end markets but also to meaningfully weak markets, the analyst says.
- Aside from their portfolio transformations, DHR and GE have benefited and should continue to benefit from their above-average growth profiles in the current low-growth environment, Winoker says.
- Energy-heavy Dover (DOV +0.2%), Pentair (PNR +0.4%) and Emerson Electric (EMR +0.2%) remain the most challenged, according to Winoker, while Eaton (ETN +1.1%), Rockwell Automation (ROK +0.5%) and Tyco (TYC -0.2%) have a mix of tailwinds and headwinds, with the former more challenged on hydraulics/trucks and the latter two on energy.
- Winoker sees limited downside for DOV, which is highly linked to crude oil prices but is performing well in the ~80% of its portfolio not linked to oil.
- Earlier: Low expectations are no longer enough for multi-industry stocks, analyst says (Nov. 19)
Nov. 19, 2015, 6:25 PM
- A sluggish U.S. economy is likely to make life tough next year for industry conglomerates such as Danaher (NYSE:DHR), Honeywell (NYSE:HON), Tyco (NYSE:TYC), Emerson Electric (NYSE:EMR) and General Electric (NYSE:GE), says Bernstein's Steven Winoker.
- The analyst notes that Q3 saw 12 of Bernstein's 13 covered companies miss on revenues, 10 either lower FY 2015 EPS guidance or issue below-consensus FY 2016 guidance, and none raise growth guidance, yet 10 stocks outperformed during earnings season.
- The companies "can’t transform their way out of the reality of a low growth world, which became even more challenging this quarter, with an indication of the worst still to come," Winoker writes, expecting guidance conservatism from the group during investor meetings before the end of the year.
- Also: MMM, ROK, IR, ETN, ALE, IEX
Oct. 27, 2015, 10:39 AM
- Net income of $300.9M, or $1.12 per share vs. $298.3M, or $1.10 per share, for the same period last year. Adjusted EPS from continuing operations of $1.21.
- Revenue by segment: Climate +4%; Industrial -2%.
- Adjusted operating margin of 14% vs. 13% (excluding restructuring and acquisition-related inventory step-up costs).
- Q4 guidance: Organic revenues to increase 2-3% compared with the same quarter of 2014. Adjusted EPS from continuing operations of $0.90-$0.95.
- Full-year guidance: Organic revenues to increase 4-5% compared with 2014. Adjusted EPS from continuing operations of $3.69-$3.74 (vs. previous guidance of $3.66-$3.81).
Ingersoll-Rand Plc is a diversified, global company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties. It operates through the two business segments:... More
Sector: Industrial Goods
Industry: Diversified Machinery
Country: United States
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