- Ingersoll Rand has unveiled a capital allocation strategy that will see further tuck-in deals in flow control, with a focus on value-added defensible niches, aftermarket leverage, and digital/data capabilities.
- Investors will share in the benefits of increased FCF generation, with management initiating a dividend and buyback plan.
- End markets should be cooperative for at least the next two years, with catch-up capex spending across multiple discrete and process industrial markets and longer-term growth in medical/biopharma and water.
- Ingersoll Rand shares are borderline on valuation, with a better expected return than many industrials (including assumed M&A contributions), but not as much EV/EBITDA upside.
For further details see:
Ingersoll Rand: Leveraged To Strong Industrial Markets And Capital Reallocation