IR

Ingersoll-Rand plc

Industrial/Transportation


Presented:05/15/2014
Price:$57.16
Cap:$15.40B
Current Price:$100.67
Cap:$40.62B

Presented

Date05/15/2014
Price$57.16
Market Cap$15.40B
Ent Value$18.12B
P/E Ratio19.92x
Book Value$22.48
Div Yield1.7%
Shares O/S269.90M
Ave Daily Vol2,550,000
Short Int0.93%

Current

Price$100.67
Market Cap$40.62B
Ingersoll-Rand plc, together with its subsidiaries, designs, manufactures, sells, and services a portfolio of industrial and commercial products in the United States and internationally. It operates through Climate and Industrial segments. The Climate segment offers heating, ventilation, and air conditioning (HVAC) systems, as well as commercial and residential building services, parts, support, and controls under the Trane and American Standard brands; and transport temperature control solutions under the Thermo King brand. The Industrial segment delivers products and services that enhance energy efficiency, productivity, and operations, which include compressed air systems and services, power tools, and material handling systems under the Ingersoll Rand brand; fluid management equipment under the ARO brand; and golf, utility, and rough terrain vehicles under the Club Car brand. The company sells its products through sales offices, distributors, and dealers in the United States; and through subsidiary sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand plc was founded in 1872 and is headquartered in Dublin, Ireland.

Public companies mentioned herein: Ingersoll-Rand (IR), Allegion (ALLE), Tyco (TYC), Hubble (HUB.B)

Highlights

When Trian’s Nelson Peltz agitated for the spin out of the company’s door systems/ locks business, Allegion (ALLE), Ingersoll Rand became more of a non-residential pure play. The company is coming off a depressed cycle, with non-res anywhere between 50-75% off of its prior peak. The presenter regards IR is a levered play on an improving cycle, with about 50% incremental margins on non-res sales. 

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Idea Discussion

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