IR
Ingersoll-Rand PLC
Industrial/Transportation
06/12/2019
Presented
| Date | 06/07/2019 |
| Price | $33.63 |
| Market Cap | $6.79B |
| Ent Value | $7.20B |
| P/E Ratio | 25.54x |
| Book Value | $8.65 |
| Div Yield | 0% |
| Shares O/S | 201.99M |
| Ave Daily Vol | 1,797,071 |
| Short Int | 1.36% |
Current
| Price | $100.67 |
| Market Cap | $40.62B |
| Gardner Denver Holdings, Inc. is a provider of flow control and compression equipment and associated aftermarket parts, consumables and services to industrial, energy and medical industries. It operates through three segments: Medical, Energy and Industrials. The Medical segment designs, manufactures and markets a range of flow control products for the medical equipment, laboratory vacuum and automated liquid handling end-markets. The Energy segment supplies equipment and associated aftermarket parts, consumables and services for the energy market applications to spanning upstream, midstream, downstream and petrochemical end markets. The Industrials segment designs, manufactures, markets and services a range of air compression, vacuum and blower products across an array of technologies and applications. Its products are sold under Gardner Denver, CompAir, Nash, Emco Wheaton, Robuschi, Elmo Rietschle and Thomas brands. Gardner Denver Holdings was founded on March 1, 2013 and is headquartered in Milwaukee, WI. |
Please note: On Monday, March 2, 2020, the newly combined company of Ingersoll Rand and Gardner Denver, named Ingersoll Rand (IR) started trading on the NYSE under ticker symbol “IR”. As part of this Reverse Morris Trust, the climate business was spun off as Trane Technologies, trading on the NYSE under ticker symbol “TT”. We have adjusted the presented data accordingly, but the note may refer to data points from the time of presentation.
Publicly traded companies mentioned herein: 3M (MMM), Honeywell (HON), Ingersoll-Rand (IR), Johnson Controls (JCI), Lennox International (LII), United Technologies (UTX)
Highlights
The presenter is long shares of Ingersoll-Rand (IR) given the company’s recent transaction to spin-off its industrial segment, and expecting this to unlock significant value in the remaining pure-play HVAC business. He believes that the company should trade as a “higher quality industrial company” after the transaction. The stock is currently ~$125 (12.4x on forward EBITDA) and has $30B EV. Based on 14x EV/EBITDA multiple and his forward EBITDA forecast for IR’s standalone HVAC business, the presenter arrived at a $150 price target.
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