Guru Fundamental Report for IR

Validea's guru fundamental report assigns Ingersoll Rand (IR) a 69% rating using its Peter Lynch-based P/E/Growth Investor model, which seeks companies with reasonable price-to-earnings growth and strong balance sheets. This score falls below the 80% threshold for 'some interest' by the strategy. While the large-cap capital goods company passed tests for P/E/Growth, EPS growth, and debt/equity, it failed on the Sales and P/E Ratio, with Free Cash Flow and Net Cash Position noted as neutral, indicating it does not fully meet the strategy's valuation and growth criteria despite some underlying fundamental strengths.

Analysis

Ingersoll Rand (IR) demonstrates a mixed fundamental profile according to Validea's quantitative analysis based on Peter Lynch's P/E/Growth strategy. The company scores 69%, which falls short of the 80% threshold indicating a level of interest from the model. The analysis highlights specific strengths, as IR passed criteria for its P/E/Growth ratio, EPS growth rate, inventory-to-sales management, and a healthy total debt-to-equity ratio. These factors suggest the company has reasonable earnings growth relative to its price and maintains a solid balance sheet. However, the model flagged a significant weakness, with IR failing the 'Sales and P/E Ratio' test. Furthermore, its Free Cash Flow and Net Cash Position were deemed 'Neutral', indicating these metrics are neither a compelling strength nor a significant weakness. This profile suggests that while the large-cap capital goods firm possesses positive underlying attributes, it does not fully meet the rigorous valuation and growth standards required by this specific investment strategy, a sentiment reflected in the mildly negative overall signal.

Key Decisions for Investors

• Investors should note the discrepancy between IR's strong underlying fundamentals, such as its EPS growth and low debt, and its failure to meet key valuation criteria within the Peter Lynch model.
• The 'FAIL' rating on the Sales and P/E Ratio test warrants a closer examination of the company's valuation relative to its size and sales growth to determine if the current price is justified.
• Monitor future reports for improvements in Free Cash Flow and Net Cash Position, as the current 'Neutral' ratings on these metrics indicate areas where improvement could make the stock more attractive to growth-oriented value models.