ITT INC (ITT) Stock Fundamental Analysis
NYSE:ITT - New York Stock Exchange, Inc. - US45073V1089 - Common Stock - Currency: USD
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 127 industry peers in the Machinery industry. ITT gets an excellent profitability rating and is at the same time showing great financial health properties. ITT is quite expensive at the moment. It does show a decent growth rate. These ratings could make ITT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year ITT was profitable.
In the past year ITT had a positive cash flow from operations.
Each year in the past 5 years ITT has been profitable.
ITT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ITT has a better Return On Assets (10.67%) than 81.10% of its industry peers.
With a decent Return On Equity value of 18.56%, ITT is doing good in the industry, outperforming 79.53% of the companies in the same industry.
ITT has a Return On Invested Capital of 13.26%. This is in the better half of the industry: ITT outperforms 78.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.90%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 18.56% | ||
| ROIC | 13.26% |
ROA(3y)10.38%
ROA(5y)8.34%
ROE(3y)17.11%
ROE(5y)13.79%
ROIC(3y)13.31%
ROIC(5y)12.08%
1.3 Margins
Looking at the Profit Margin, with a value of 14.20%, ITT belongs to the top of the industry, outperforming 83.46% of the companies in the same industry.
ITT's Profit Margin has improved in the last couple of years.
ITT's Operating Margin of 17.78% is amongst the best of the industry. ITT outperforms 82.68% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
ITT has a Gross Margin of 34.76%. This is in the better half of the industry: ITT outperforms 60.63% of its industry peers.
In the last couple of years the Gross Margin of ITT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.78% | ||
| PM (TTM) | 14.2% | ||
| GM | 34.76% |
OM growth 3Y3.53%
OM growth 5Y5.04%
PM growth 3Y7.7%
PM growth 5Y4.57%
GM growth 3Y1.81%
GM growth 5Y1.45%
2. Health
2.1 Basic Checks
ITT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ITT has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ITT has less shares outstanding
ITT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.88 indicates that ITT is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.88, ITT belongs to the best of the industry, outperforming 81.89% of the companies in the same industry.
The Debt to FCF ratio of ITT is 1.52, which is an excellent value as it means it would take ITT, only 1.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.52, ITT is in the better half of the industry, outperforming 78.74% of the companies in the same industry.
A Debt/Equity ratio of 0.26 indicates that ITT is not too dependend on debt financing.
The Debt to Equity ratio of ITT (0.26) is better than 66.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.52 | ||
| Altman-Z | 5.88 |
ROIC/WACC1.34
WACC9.91%
2.3 Liquidity
ITT has a Current Ratio of 1.19. This is a normal value and indicates that ITT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.19, ITT is doing worse than 85.83% of the companies in the same industry.
ITT has a Quick Ratio of 1.19. This is a bad value and indicates that ITT is not financially healthy enough and could expect problems in meeting its short term obligations.
ITT has a worse Quick ratio (0.80) than 75.59% of its industry peers.
The current and quick ratio evaluation for ITT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
ITT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.06%, which is quite good.
Measured over the past years, ITT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.09% on average per year.
Looking at the last year, ITT shows a small growth in Revenue. The Revenue has grown by 6.99% in the last year.
Measured over the past years, ITT shows a small growth in Revenue. The Revenue has been growing by 4.99% on average per year.
EPS 1Y (TTM)8.06%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%2.11%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%0.26%
3.2 Future
ITT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.18% yearly.
Based on estimates for the next years, ITT will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y10.54%
EPS Next 2Y11.28%
EPS Next 3Y9.61%
EPS Next 5Y8.18%
Revenue Next Year4.23%
Revenue Next 2Y4.43%
Revenue Next 3Y4.25%
Revenue Next 5Y4.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.54, which means the current valuation is very expensive for ITT.
Compared to the rest of the industry, the Price/Earnings ratio of ITT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.05. ITT is around the same levels.
With a Price/Forward Earnings ratio of 22.35, ITT is valued on the expensive side.
ITT's Price/Forward Earnings ratio is in line with the industry average.
ITT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 22.35 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ITT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.37 | ||
| EV/EBITDA | 15.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ITT may justify a higher PE ratio.
PEG (NY)2.61
PEG (5Y)3.03
EPS Next 2Y11.28%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.88%, which is pretty low.
ITT's Dividend Yield is comparable with the industry average which is at 1.85.
Compared to an average S&P500 Dividend Yield of 2.32, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of ITT grows each year by 16.67%, which is quite nice.
ITT has been paying a dividend for at least 10 years, so it has a reliable track record.
ITT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.67%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ITT pays out 20.72% of its income as dividend. This is a sustainable payout ratio.
ITT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.72%
EPS Next 2Y11.28%
EPS Next 3Y9.61%
162.47
+0.97 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners97.33%
Inst Owner Change-0.18%
Ins Owners0.69%
Ins Owner Change7.32%
Market Cap12.79B
Analysts80
Price Target175.35 (7.93%)
Short Float %1.99%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP20.72%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.35%
Min EPS beat(2)-0.09%
Max EPS beat(2)0.8%
EPS beat(4)3
Avg EPS beat(4)0.67%
Min EPS beat(4)-0.09%
Max EPS beat(4)1.26%
EPS beat(8)6
Avg EPS beat(8)2.98%
EPS beat(12)10
Avg EPS beat(12)2.76%
EPS beat(16)12
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-0.7%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.46%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)-0.46%
Revenue beat(8)4
Avg Revenue beat(8)0.32%
Revenue beat(12)7
Avg Revenue beat(12)0.46%
Revenue beat(16)10
Avg Revenue beat(16)0.64%
PT rev (1m)0.21%
PT rev (3m)8.2%
EPS NQ rev (1m)0.23%
EPS NQ rev (3m)2.13%
EPS NY rev (1m)0.24%
EPS NY rev (3m)1.64%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.54 | ||
| Fwd PE | 22.35 | ||
| P/S | 3.52 | ||
| P/FCF | 26.37 | ||
| P/OCF | 20.7 | ||
| P/B | 4.6 | ||
| P/tB | 14.64 | ||
| EV/EBITDA | 15.6 |
EPS(TTM)5.9
EY3.63%
EPS(NY)7.27
Fwd EY4.47%
FCF(TTM)6.16
FCFY3.79%
OCF(TTM)7.85
OCFY4.83%
SpS46.16
BVpS35.32
TBVpS11.1
PEG (NY)2.61
PEG (5Y)3.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 18.56% | ||
| ROCE | 20.33% | ||
| ROIC | 13.26% | ||
| ROICexc | 14.94% | ||
| ROICexgc | 33.17% | ||
| OM | 17.78% | ||
| PM (TTM) | 14.2% | ||
| GM | 34.76% | ||
| FCFM | 13.34% |
ROA(3y)10.38%
ROA(5y)8.34%
ROE(3y)17.11%
ROE(5y)13.79%
ROIC(3y)13.31%
ROIC(5y)12.08%
ROICexc(3y)15.72%
ROICexc(5y)14.78%
ROICexgc(3y)30.58%
ROICexgc(5y)28%
ROCE(3y)18.55%
ROCE(5y)16.52%
ROICexcg growth 3Y4.62%
ROICexcg growth 5Y12.61%
ROICexc growth 3Y-1.83%
ROICexc growth 5Y5.78%
OM growth 3Y3.53%
OM growth 5Y5.04%
PM growth 3Y7.7%
PM growth 5Y4.57%
GM growth 3Y1.81%
GM growth 5Y1.45%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 1.52 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 94.39% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 16.65 | ||
| Cash Conversion | 78.52% | ||
| Profit Quality | 93.97% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 5.88 |
F-Score7
WACC9.91%
ROIC/WACC1.34
Cap/Depr(3y)95.17%
Cap/Depr(5y)84.09%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.19%
Profit Quality(3y)78.9%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.06%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%2.11%
EPS Next Y10.54%
EPS Next 2Y11.28%
EPS Next 3Y9.61%
EPS Next 5Y8.18%
Revenue 1Y (TTM)6.99%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%0.26%
Revenue Next Year4.23%
Revenue Next 2Y4.43%
Revenue Next 3Y4.25%
Revenue Next 5Y4.57%
EBIT growth 1Y10.54%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year28.05%
EBIT Next 3Y13.29%
EBIT Next 5Y10.37%
FCF growth 1Y105.42%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y82.46%
OCF growth 3YN/A
OCF growth 5Y9.41%