Ingersoll Rand Inc: Demand better, but margins depressed

Research evidence excerpt

Ingersoll Rand Inc: Demand better, but margins depressed

Forecast returns

Forecast price appreciation 21.1%

Forecast dividend yield 0.1%

Forecast stock return 21.2%

Market return assumption 9.3%

Forecast excess return 11.9%

Company Description

Ingersoll Rand is a global leader in compressor, pump, vacuum, and blower products &

services. It operates through two segments: Industrial Technologies & Services and Precision &

Science Technologies.

Valuation Method and Risk Statement

Our price target is based on applying a forward P/E multiple to our EPS forecast.

The Electrical Equipment and Multi Industry sector faces a broad range of risks. It is cyclical in

nature with exposure to the underlying cycles inherent in everything from aviation, auto,

trucking and trains to construction and consumer electronics to mining, power, oil and gas

and more depending on the specific stock. EEMI companies are subject to risks associated

with unexpected changes in the underlying global macro environment, currency and interest

rate movements, commodity price inflation as well as company-specific execution, M&A,

integration, labor relations and changes in the competitive or regulatory environment. These

changes can be in the form of product technology, ecommerce and other digital disruption

and/or channel disintermediation. Changes in the overall macro environment can result from

health emergencies such as COVID-19 and other pandemics. Capacity and related pricing

pressures are also a risk through the cycle. Finally, these multinational companies are subject

to policy changes taking place in the United States and internationally, including those related

to environmental regulation and tariffs.

Company-specific risks include lack of sales and earnings accretion from acquisitions and mis-