CIT Group Inc (CIT) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CIT

53.5
+2.16 (+4.21%)
At close: Jan 3, 2022
53.82
+0.32 (+0.6%)
After Hours: 1/3/2022, 8:04:00 PM
Fundamental Rating

2

Overall CIT gets a fundamental rating of 2 out of 10. We evaluated CIT against 383 industry peers in the Banks industry. Both the profitability and financial health of CIT have multiple concerns. CIT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year CIT was profitable.
CIT Yearly Net Income VS EBIT VS OCF VS FCFCIT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 0 1B 2B

1.2 Ratios

Industry RankSector Rank
ROA 1.31%
ROE 11.58%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
CIT Yearly ROA, ROE, ROICCIT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 0 5 -5 -10

1.3 Margins

  • CIT does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 28.46%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
CIT Yearly Profit, Operating, Gross MarginsCIT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 0 10 -10 20 -20 -30

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1

2. Health

2.1 Basic Checks

  • Compared to 1 year ago, CIT has more shares outstanding
  • Compared to 1 year ago, CIT has an improved debt to assets ratio.
CIT Yearly Shares OutstandingCIT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 50M 100M 150M 200M
CIT Yearly Total Debt VS Total AssetsCIT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 20B 40B 60B

2.2 Solvency

  • CIT has a Debt/Equity ratio of 0.69. This is a neutral value indicating CIT is somewhat dependend on debt financing.
Industry RankSector Rank
Debt/Equity 0.69
Debt/FCF N/A
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
CIT Yearly LT Debt VS Equity VS FCFCIT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 0 2B 4B 6B 8B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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4

3. Growth

3.1 Past

  • CIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 455.37%, which is quite impressive.
  • Looking at the last year, CIT shows a small growth in Revenue. The Revenue has grown by 6.45% in the last year.
  • Measured over the past years, CIT shows a small growth in Revenue. The Revenue has been growing by 5.14% on average per year.
EPS 1Y (TTM)455.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%104.76%
Revenue 1Y (TTM)6.45%
Revenue growth 3Y-0.98%
Revenue growth 5Y5.14%
Sales Q2Q%-6.18%

3.2 Future

  • Based on estimates for the next years, CIT will show a very strong growth in Earnings Per Share. The EPS will grow by 25.51% on average per year.
  • The Revenue is expected to grow by 4.10% on average over the next years.
EPS Next Y359.06%
EPS Next 2Y86.6%
EPS Next 3Y53.57%
EPS Next 5Y25.51%
Revenue Next Year4.36%
Revenue Next 2Y0.45%
Revenue Next 3Y4.22%
Revenue Next 5Y4.1%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
CIT Yearly Revenue VS EstimatesCIT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
CIT Yearly EPS VS EstimatesCIT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 -5

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5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 8.51 indicates a reasonable valuation of CIT.
  • CIT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
  • CIT is valuated reasonably with a Price/Forward Earnings ratio of 11.72.
  • When comparing the Price/Forward Earnings ratio of CIT to the average of the S&P500 Index (25.57), we can say CIT is valued rather cheaply.
Industry RankSector Rank
PE 8.51
Fwd PE 11.72
CIT Price Earnings VS Forward Price EarningsCIT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
CIT Per share dataCIT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • CIT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • CIT's earnings are expected to grow with 53.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y86.6%
EPS Next 3Y53.57%

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4

5. Dividend

5.1 Amount

  • CIT has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average S&P500 Dividend Yield of 1.82, CIT pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.73%

5.2 History

  • The dividend of CIT is nicely growing with an annual growth rate of 31.91%!
  • CIT has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)31.91%
Div Incr YearsN/A
Div Non Decr YearsN/A
CIT Yearly Dividends per shareCIT Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • CIT pays out 23.91% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of CIT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.91%
EPS Next 2Y86.6%
EPS Next 3Y53.57%
CIT Yearly Income VS Free CF VS DividendCIT Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 0 200M -200M 400M -400M -600M -800M
CIT Dividend Payout.CIT Dividend Payout, showing the Payout Ratio.CIT Dividend Payout.PayoutRetained Earnings

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CIT Group Inc / CIT FAQ

What is the ChartMill fundamental rating of CIT Group Inc (CIT) stock?

ChartMill assigns a fundamental rating of 5 / 10 to CIT.


Can you provide the valuation status for CIT Group Inc?

ChartMill assigns a valuation rating of 9 / 10 to CIT Group Inc (CIT). This can be considered as Undervalued.


How profitable is CIT Group Inc (CIT) stock?

CIT Group Inc (CIT) has a profitability rating of 4 / 10.


What is the valuation of CIT Group Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for CIT Group Inc (CIT) is 8.51 and the Price/Book (PB) ratio is 0.85.


Can you provide the financial health for CIT stock?

The financial health rating of CIT Group Inc (CIT) is 1 / 10.