November 09, 2025 a 03:31 pm
IR: Dividend Analysis - Ingersoll Rand Inc.
Ingersoll Rand Inc., with a market capitalization of approximately $30.62 billion, demonstrates a modest dividend yield of 0.10%. The company, which operates in the industrial sector, has shown resilience in maintaining its dividend policy, although growth rates suggest caution. It is crucial to assess how these dividends interact with other financial ratios to comprehend the sustainability of returns to shareholders.
📊 Overview
As a player in the industrial sector, Ingersoll Rand provides a stable outlook on dividends. However, its yield seems minimal, limiting its immediate attraction to income-focused investors. Nevertheless, its historical consistency over 9 years and a recent period without cuts underline potential long-term reliability.
| Metric | Value |
|---|---|
| Sector | Industry |
| Dividend yield | 0.10% |
| Current dividend per share | $0.08 |
| Dividend history | 9 years |
| Last cut or suspension | 2021 |
📈 Dividend History
Ingersoll Rand's dividend history reveals stability in recent payouts, despite earlier fluctuations. Monitoring historical payments helps investors evaluate potential trends or abrupt changes, impacting future yields.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.08 |
| 2024 | 0.08 |
| 2023 | 0.08 |
| 2022 | 0.08 |
| 2021 | 0.02 |
📉 Dividend Growth
Evaluating dividend growth rates provides insights into the company's capacity to enhance shareholder returns over time. The divergence between 3-year and 5-year growth accentuates inconsistent growth performance, necessitating vigilance from investors.
| Time | Growth |
|---|---|
| 3 years | 0.59% |
| 5 years | -0.48% |
The average dividend growth is -0.48% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios provide a snapshot of what percentage of earnings or cash flows is allocated to dividends. A balanced payout ratio signifies prudent management of resources.
| Key Figure | Ratio |
|---|---|
| EPS-based | 5.88% |
| Free cash flow-based | 2.42% |
An EPS payout ratio of 5.88% and an FCF payout ratio of 2.42% indicate a conservative approach, ensuring dividends are well covered by profits and free cash flows.
💼 Cashflow & Capital Efficiency
Examining cash flow metrics highlights the company's ability to convert earnings into free cash, crucial for sustaining dividends and investments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.42% | 4.06% | 3.62% |
| Earnings Yield | 2.30% | 2.49% | 2.86% |
| CAPEX to Operating Cash Flow | 10.68% | 7.65% | 10.00% |
| Stock-based Compensation to Revenue | 0.81% | 0.75% | 1.33% |
| Free Cash Flow / Operating Cash Flow Ratio | 89.32% | 92.35% | 89.00% |
The consistent generation of free cash flow underscores the company's ability to effectively channel earnings into flexible financial activities and capital efficiencies.
📊 Balance Sheet & Leverage Analysis
Analyzing financial leverage and liquidity metrics helps evaluate stability and the ability to cope with liabilities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.49 | 0.28 | 0.30 |
| Debt-to-Assets | 0.28 | 0.18 | 0.19 |
| Debt-to-Capital | 0.33 | 0.22 | 0.23 |
| Net Debt to EBITDA | 1.88 | 0.71 | 0.92 |
| Current Ratio | 2.29 | 2.22 | 2.37 |
| Quick Ratio | 1.71 | 1.67 | 1.76 |
Strong current and quick ratios exhibit liquidity adequacy, while debt metrics reflect a controlled leverage, enhancing financial stability.
📈 Fundamental Strength & Profitability
Profitability metrics offer insights into the financial health and operational efficiency, crucial for sustaining dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 8.24% | 7.96% | 6.58% |
| Return on Assets | 4.66% | 5.00% | 4.10% |
| Net Margin | 11.59% | 11.32% | 10.22% |
| EBIT Margin | 18.60% | 17.27% | 14.29% |
| EBITDA Margin | 25.27% | 23.95% | 21.60% |
| Gross Margin | 43.81% | 41.92% | 39.31% |
| Research & Development to Revenue | 0% | 0% | 0% |
Positive profitability enhances shareholder value, although a lack of R&D investment could limit future innovation opportunities.
📈 Price Development
🔍 Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend yield | 1 | |
| Dividend Stability | 4 | |
| Dividend growth | 2 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 25/40
🗣️ Rating
Ingersoll Rand's conservative dividend policy ensures stability but lacks aggressive growth, making it suitable for risk-averse investors. Its solid fundamentals and cash flow management support sustainability, despite muted dividend yields. A cautious "Hold" recommendation is provided, reflecting its balance between reliability and growth potential.