Core Viewpoint - Ingersoll Rand (IR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Company Performance and Investor Sentiment - The upgrade reflects an improvement in Ingersoll's underlying business, suggesting that investor sentiment will likely drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Ingersoll has increased by 1.7%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - Ingersoll's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

Core Insights - Investors are evaluating Oshkosh (OSK) and Ingersoll Rand (IR) for value investment opportunities, with a focus on their financial metrics and earnings outlooks [1][3]. Valuation Metrics - Both OSK and IR currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - OSK has a forward P/E ratio of 11.86, significantly lower than IR's forward P/E of 24.49, suggesting OSK may be undervalued [5]. - The PEG ratio for OSK is 1.63, while IR's PEG ratio is 4.52, indicating OSK's expected earnings growth is more favorable relative to its price [5]. - OSK's P/B ratio stands at 1.86, compared to IR's P/B of 3.23, further supporting the notion that OSK is a more attractive value option [6]. Value Grades - OSK has a Value grade of B, while IR has a Value grade of D, highlighting OSK's stronger position in terms of valuation metrics [6].

Group 1 - Ingersoll Rand Inc. share price is currently at $80.00, reflecting a 1.88% decrease in the market session, with a 1.32% increase over the past month and a 16.20% decline over the past year [1] - The company's price-to-earnings (P/E) ratio is 63.2, which is significantly higher than the Machinery industry average P/E ratio of 28.49, suggesting that shareholders may expect better performance or that the stock could be overvalued [6] - The P/E ratio serves as a useful metric for assessing market performance, but it has limitations and should be considered alongside other financial metrics and qualitative analysis [9] Group 2 - A lower P/E ratio may indicate that a company is undervalued or that shareholders do not anticipate future growth, highlighting the importance of context in P/E analysis [5][9] - Investors are encouraged to analyze the P/E ratio in conjunction with industry trends and business cycles to make informed investment decisions [9]

Core Viewpoint - The comparison between Oshkosh (OSK) and Ingersoll Rand (IR) indicates that OSK presents a better value opportunity for investors at this time [1]. Valuation Metrics - OSK has a forward P/E ratio of 12.53, significantly lower than IR's forward P/E of 23.35 [5]. - The PEG ratio for OSK is 1.72, while IR's PEG ratio is considerably higher at 4.31, suggesting OSK is more reasonably priced relative to its expected earnings growth [5]. - OSK's P/B ratio stands at 1.97, compared to IR's P/B ratio of 3.08, indicating that OSK is undervalued in terms of market value versus book value [6]. - These metrics contribute to OSK receiving a Value grade of B, while IR has a Value grade of D [6]. Earnings Outlook - OSK is experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The positive earnings estimate revisions for OSK suggest a more favorable earnings outlook compared to IR, which is rated as a Hold [3][7].

Group 1 - The company differentiates itself from broader industrials through a strong M&A engine, identifying 4 to 5 points of M&A growth annually and effectively integrating them to enhance margins [1] - The company promotes a unique ownership mindset culture among its 25,000 employees, teaching them to think like owners and focus on cash conversion cycles [2] - The combination of the ownership mindset and the Ingersoll Rand Execution Excellence (IRX) operational framework contributes to the company's unique approach to M&A, generating high free cash flow margins of nearly 20% [3]

Ingersoll Rand FY Conference Summary Company Overview - **Company**: Ingersoll Rand (NYSE: IR) - **Date of Conference**: September 11, 2025 - **Key Speakers**: CEO Vicente Reynal, CFO Vikram Kini Key Points M&A Strategy - Ingersoll Rand differentiates itself through a strong M&A engine, identifying 4-5 growth opportunities annually and integrating them effectively to enhance margins [3][4] - The company has completed 75 acquisitions over the past five years, with 90% being family-owned or founder-based, achieving an average pre-synergy EBITDA multiple of 9.5 times [4][12] - The integration process is decentralized, occurring within nine P&L leaders, allowing for rapid synergy realization [5][6] Financial Performance - The company generates a free cash flow margin of 15-20%, which is reinvested into bolt-on acquisitions [3][4] - Ingersoll Rand aims for a mid-teens return on invested capital (ROIC) by year three post-acquisition [4] Market Position and Growth - The company operates in a $75 billion addressable market with $7.5 billion in revenue, indicating significant growth potential in a fragmented market [11] - Ingersoll Rand focuses on acquiring companies with gross margins in the mid-30s or higher, emphasizing pricing power and unique technology [9][10] Energy Efficiency and ROI - Compressors account for 30-40% of energy consumption in manufacturing facilities, with 80% of ownership costs attributed to electricity over a 10-year lifespan [13][14] - The average payback period for energy-efficient compressors is now less than two years, with many customers realizing the need for energy savings [15][16] Service Model Transition - Ingersoll Rand is transitioning from a traditional parts business to a care model, targeting $1 billion in recurring revenue by 2027, with $300 million achieved in 2024 [17][18] - The care model includes performance guarantees and multi-year contracts, enhancing gross margins significantly [19][24] Market Dynamics - The company reports stable market conditions, with positive organic growth in China and strong performance in Europe, while North America remains cautious due to tariff uncertainties [26][29][30] - Ingersoll Rand is focusing on underpenetrated markets in Latin America and Southeast Asia, leveraging local partnerships to drive growth [33][34] Tariff Impact - The recent tariff policies have created uncertainty, but Ingersoll Rand believes its U.S. manufacturing capabilities provide a competitive advantage [51][52] - The company is managing cost increases due to tariffs without passing on margin increases to customers, maintaining a neutral impact on EBITDA [56] Pricing Strategy - Ingersoll Rand employs a total cost of ownership approach in pricing, ensuring that price increases are justified by ROI for customers [58][59] - There is some pricing fatigue in the market due to frequent price adjustments, but the company remains agile in navigating these dynamics [58][59] Margin Outlook - The company anticipates margin expansion in the second half of the year, driven by seasonal volume increases and prudent cost management [62][64] - Integration of recent acquisitions, such as ILC Dover, is expected to contribute positively to margins [64][65] Additional Insights - The care model is seen as the biggest organic growth initiative for Ingersoll Rand, with potential for expansion across various product lines [21][22] - The company is exploring innovative solutions to enhance recurring revenue and improve gross margins further [25][26] This summary encapsulates the key insights and strategic directions discussed during the Ingersoll Rand FY Conference, highlighting the company's focus on M&A, energy efficiency, service model transformation, and market dynamics.

Company Overview - Ingersoll Rand Inc. (IR) is valued at a market cap of $31.9 billion and provides mission-critical air, fluid, energy, and medical technologies services and solutions [1] - The company is based in Davidson, North Carolina, and serves various industries including manufacturing, energy, life sciences, and food & beverage [1][2] Market Position - Ingersoll Rand is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size and influence in the specialty industrial machinery industry [2] - The company has a broad portfolio of industrial solutions and a strong global service network, ensuring consistent aftermarket revenue [2] Stock Performance - Ingersoll Rand's stock has decreased 24.3% from its 52-week high of $106.03, reached on November 25, 2024 [3] - Over the past three months, shares have declined 5.3%, underperforming the Nasdaq Composite's 11% return [3] - The stock has fallen 8.9% over the past 52 weeks, significantly lagging behind the NASX's 28.6% increase during the same period [4] - Year-to-date, shares are down 11.3%, compared to NASX's 13.3% rise [4] - The stock has been trading below its 200-day moving average since mid-December 2024 and below its 50-day moving average since early August [4] Financial Performance - Ingersoll Rand reported Q2 earnings on July 31, with revenue growing 4.6% year-over-year to $1.9 billion, exceeding consensus estimates by 2.7% [5] - The adjusted EPS was $0.80, meeting analyst forecasts [5] - The company raised its fiscal 2025 guidance, projecting revenue growth of 4% to 6% and adjusted EPS between $3.34 and $3.46 [5] - Despite the positive earnings report, shares fell 11.4% in the following trading session, attributed to a 3.6% year-over-year decline in adjusted EPS and a 40-basis point drop in adjusted EBITDA margin [5] - Free cash flow decreased by 25.7% from the prior-year quarter, impacting investor sentiment [5]

Core Insights - Oshkosh (OSK) currently presents a stronger investment opportunity compared to Ingersoll Rand (IR) based on Zacks Rank and valuation metrics [3][7] Valuation Metrics - OSK has a forward P/E ratio of 13.09, significantly lower than IR's forward P/E of 23.80 [5] - The PEG ratio for OSK is 1.80, while IR's PEG ratio is considerably higher at 4.39, indicating OSK's better valuation relative to its expected earnings growth [5] - OSK's P/B ratio stands at 2.06, compared to IR's P/B ratio of 3.14, further supporting OSK's valuation advantage [6] Analyst Outlook - OSK holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision activity compared to IR, which has a Zacks Rank of 3 (Hold) [3][7] - The Value grade for OSK is B, while IR has a Value grade of D, highlighting OSK's superior valuation metrics [6]

Core Viewpoint - The comparison between Luxfer (LXFR) and Ingersoll Rand (IR) indicates that LXFR currently offers better value for investors based on various financial metrics and rankings [1][3]. Valuation Metrics - Luxfer has a forward P/E ratio of 11.05, significantly lower than Ingersoll Rand's forward P/E of 23.59 [5]. - The PEG ratio for Luxfer is 1.38, while Ingersoll Rand's PEG ratio is 3.21, suggesting that Luxfer is more reasonably priced relative to its expected earnings growth [5]. - Luxfer's P/B ratio stands at 1.28, compared to Ingersoll Rand's P/B of 3.08, indicating that Luxfer is trading at a lower valuation relative to its book value [6]. Zacks Rank and Style Scores - Luxfer holds a Zacks Rank of 2 (Buy), while Ingersoll Rand has a Zacks Rank of 3 (Hold), suggesting a stronger earnings outlook for Luxfer [3]. - The Style Score Value grade for Luxfer is A, whereas Ingersoll Rand has a Value grade of D, further emphasizing Luxfer's superior valuation metrics [6]. Estimate Revisions - Luxfer has experienced stronger estimate revision activity compared to Ingersoll Rand, making it a more attractive option for value investors [7].

Core Viewpoint - Ingersoll Rand Inc. has acquired Dave Barry Plastics to enhance its life sciences portfolio, reflecting the company's commitment to innovative and high-performance solutions in the industry [1][3]. Company Overview - Ingersoll Rand Inc. is a global provider of mission-critical flow creation and life science and industrial solutions, supported by over 80 respected brands [4]. - The company aims to improve performance and durability in complex and harsh conditions, focusing on customer satisfaction and long-term relationships [4]. Acquisition Details - Dave Barry Plastics, based in Ireland, specializes in designing and manufacturing plastic product solutions for the life science and healthcare technology industries, particularly for clean rooms [2]. - The acquisition will integrate Dave Barry Plastics into Ingersoll Rand's Life Sciences platform within the Precision and Science Technologies (P&ST) segment [2]. Strategic Implications - The acquisition supports Ingersoll Rand's growth strategy by providing opportunities for innovation, market expansion, and long-term value creation within the life sciences sector [7]. - The investment was made at an attractive purchase multiple of approximately 9 times the 2024 Adjusted EBITDA, indicating a strategic financial decision [7].