Ingersoll RandIR -0.33%86 3-Year ROIIC % is 12.74 as of Dec. 2025, which is 280% above its 10-year median of 3.35. GuruFocus rates IR with a GF Score™ of 86/100 and a GF Value™ of $91.34 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,936 Industrial Products companies, Ingersoll Rand ranks better than 66.38% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Ingersoll Rand's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 12.74%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Ingersoll Rand's 3-Year ROIIC % or its related term are showing as below:
IR's 3-Year ROIIC % is ranked better than 66.38% of 2936
companies
in the Industrial Products industry
Industry Median: 3.425
vs IR: 12.74
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Ingersoll Rand 3-Year ROIIC % Related Terms
Ingersoll Rand 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Ingersoll Rand's 3-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Industrial Machinery subindustry, Ingersoll Rand's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ingersoll Rand 3-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ingersoll Rand's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Ingersoll Rand's 3-Year ROIIC % falls into.
Ingersoll Rand's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1155.754 (Dec. 2025) - 702.11296 (Dec. 2022) )
/
( 15435.4 (Dec. 2025) - 11875.5 (Dec. 2022) )
=
453.64104
/
3559.9
=
12.74%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Ingersoll Rand (IR) has a 3-Year ROIIC % of 12.74 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ingersoll Rand and its competitors. This is 280% above median its historical median of 3.35. According to the industry distribution chart, Ingersoll Rand ranks #987 out of 2936 companies in the Industrial Products industry, placing it in the top 33.6%.
Is Ingersoll Rand's 3-Year ROIIC % too high?
Ingersoll Rand's current 3-Year ROIIC % of 12.74 is 280% above median its 10-year median of 3.35. The Industrial Products industry median 3-Year ROIIC % is 3.43. Ingersoll Rand's value of 12.74 is 272% above this industry median. Based on the distribution chart, Ingersoll Rand ranks #987 out of 2936 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Ingersoll Rand has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ingersoll Rand's 3-Year ROIIC % compare to DOV and OTIS?
According to the Industrial Products industry distribution chart, Ingersoll Rand ranks #987 out of 2936 companies for 3-Year ROIIC %. This puts Ingersoll Rand in the upper half of its industry. The industry median 3-Year ROIIC % is 3.43. Ingersoll Rand's value of 12.74 is 272% above this benchmark. While the company's 10-year median is 3.35 vs. the industry median of 3.43, Ingersoll Rand has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Industrial Products company?
The median 3-Year ROIIC % among Industrial Products companies is 3.43, based on 2,936 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ingersoll Rand's current 3-Year ROIIC % of 12.74 is 272% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Ingersoll Rand and its competitors. For the Industrial Products industry, the median 3-Year ROIIC % is 3.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ingersoll Rand's current 3-Year ROIIC % is 12.74, which is 280% above median its own 10-year median of 3.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ingersoll Rand stock overvalued right now?
Based on GuruFocus' analysis, Ingersoll Rand (IR) is currently considered Modestly Undervalued. The stock's GF Value™ is $91.34, compared to a current price of $80.59 — trading 11.8% below its estimated fair value. The current 3-Year ROIIC % is 12.74, which is 280% above median its 10-year median of 3.35 and 272% above the Industrial Products industry median of 3.43. Ingersoll Rand's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Ingersoll Rand (IR), the current 3-Year ROIIC % is 12.74 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ingersoll Rand (IR) Overvalued in 2026?
Based on GuruFocus' analysis, Ingersoll Rand stock appears to be undervalued.
The current stock price of $80.59 is trading 11.8% below its estimated GF Value™ of $91.34.
GuruFocus considers Ingersoll Rand to be Modestly Undervalued.
Key valuation signals for IR:
3-Year ROIIC %: 12.74 (280% above median its 10-year median of 3.35)
GF Value™: $91.34 vs. price of $80.59 (11.8% below fair value)
Industry Position: 272% above the Industrial Products median (#987 of 2936)
No single metric tells the full story. See the IR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services, and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $7.7 billion in revenue in 2025.
86GF Score
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