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Is this Large Market Cap Stock target price reasonable for Ingersoll-Rand Plc (NYSE:IR)?

The company in question is, Ingersoll-Rand Plc (NYSE:IR) currently with a stock price of 64.64 (-5.18% today). The market cap for Ingersoll-Rand Plc is 17683.3, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Ingersoll-Rand Plc is 73.65. Currently Ingersoll-Rand Plc is trading with a P/E of 24.01, and a forward P/E of 15.15. Average volume for Ingersoll-Rand Plc is 1761.33 and so far today it is 2654147.

Performance in the last year for Ingersoll-Rand Plc has been 7.12%. For EPS growth, Ingersoll-Rand Plc has seen a growth of -21.30%, and is looking to grow in the next year to 10.18%. More long term stats show that EPS growth has been 2.80% over the last five years and could be 9.21% for the next five years. Ingersoll-Rand Plc has seen sales growth quarter over quarter at 0.20%, with EPS growth quarter over quarter at 120.10%. The 20-day simple moving average is -1.02%, with the 200-day simple moving average coming to 9.85%.

Since the IPO date for Ingersoll-Rand Plc on the 7/1/1985, Ingersoll-Rand Plc has seen performance year to date to be 24.59%. With Ingersoll-Rand Plc trading at 64.64, the dividend yield is 1.88%, and the EPS is 2.84.

So could Ingersoll-Rand Plc, be undervalued? Well as said before P/E is 24.01. The PEG is 2.61, P/S is 1.33 and the P/B is at 3.05. The P/cash is 28.85, with P/free cash flow at *TBA.

Ingersoll-Rand Plc ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.8. This is with long term debt/equity at 0.64, and total debt/equity at 0.77.

In terms of margins, Ingersoll-Rand Plc has a gross margin of 30.50%, an operating margin of 11.30% and a profit margin of 5.80%.Payout ratio for Ingersoll-Rand Plc is 41.00%. Return on assets come to 4.40% with return on investment coming to 9.10%.

Insider ownership for Ingersoll-Rand Plc, is at 0.40% and institutional ownership comes to 84.90%. Outstanding shares are at 259.4. While shares float is 256.59. The float short is currently 0.72%, and short ratio is 1.05.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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