ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
172.24 USD
-2.42 (-1.39%)
172.24 USD
0 (0%)
ITT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. While ITT belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, ITT is valued expensive at the moment.
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 Return On Assets of 10.32%. This is amongst the best in the industry. ITT outperforms 81.54% of its industry peers.
ITT's Return On Equity of 20.25% is amongst the best of the industry. ITT outperforms 84.62% of its industry peers.
ITT has a Return On Invested Capital of 13.13%. This is amongst the best in the industry. ITT outperforms 81.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 20.25% | ||
| ROIC | 13.13% |
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
ITT has a Profit Margin of 13.99%. This is amongst the best in the industry. ITT outperforms 86.15% of its industry peers.
ITT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 17.87%, ITT belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Operating Margin of ITT has grown nicely.
The Gross Margin of ITT (34.96%) is better than 60.77% 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 | 17.87% | ||
| PM (TTM) | 13.99% | ||
| GM | 34.96% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ITT is creating some value.
Compared to 1 year ago, ITT has less shares outstanding
The number of shares outstanding for ITT has been reduced compared to 5 years ago.
The debt/assets ratio for ITT is higher compared to a year ago.
2.2 Solvency
ITT has an Altman-Z score of 5.38. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
ITT has a Altman-Z score of 5.38. This is amongst the best in the industry. ITT outperforms 80.77% of its industry peers.
The Debt to FCF ratio of ITT is 2.13, which is a good value as it means it would take ITT, 2.13 years of fcf income to pay off all of its debts.
ITT's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. ITT outperforms 75.38% of its industry peers.
ITT has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, ITT perfoms like the industry average, outperforming 55.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.38 |
ROIC/WACC1.39
WACC9.44%
2.3 Liquidity
ITT has a Current Ratio of 1.45. This is a normal value and indicates that ITT is financially healthy and should not expect problems in meeting its short term obligations.
ITT has a worse Current ratio (1.45) than 76.92% of its industry peers.
ITT has a Quick Ratio of 1.45. This is a bad value and indicates that ITT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ITT (0.99) is worse than 66.15% 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 | 1.45 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.65% over the past year.
ITT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.09% yearly.
Looking at the last year, ITT shows a small growth in Revenue. The Revenue has grown by 6.69% 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)7.65%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%10.07%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
3.2 Future
Based on estimates for the next years, ITT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.84% on average per year.
ITT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y11.96%
EPS Next 2Y12.73%
EPS Next 3Y11.55%
EPS Next 5Y11.84%
Revenue Next Year6.05%
Revenue Next 2Y5.7%
Revenue Next 3Y5.19%
Revenue Next 5Y5.44%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
ITT is valuated quite expensively with a Price/Earnings ratio of 28.47.
The rest of the industry has a similar Price/Earnings ratio as ITT.
ITT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.57.
The Price/Forward Earnings ratio is 23.09, which indicates a rather expensive current valuation of ITT.
ITT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.09. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 23.09 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITT.
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 | 26.74 | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ITT does not grow enough to justify the current Price/Earnings ratio.
ITT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)3.13
EPS Next 2Y12.73%
EPS Next 3Y11.55%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.82%, which is pretty low.
ITT's Dividend Yield is comparable with the industry average which is at 1.80.
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 | 0.82% |
5.2 History
The dividend of ITT is nicely growing with an annual growth rate of 16.67%!
ITT has paid a dividend for at least 10 years, which is a reliable track record.
ITT has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.67%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ITT pays out 20.92% of its income as dividend. This is a sustainable payout ratio.
The dividend of ITT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.92%
EPS Next 2Y12.73%
EPS Next 3Y11.55%
172.24
-2.42 (-1.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change0.11%
Ins Owners0.56%
Ins Owner Change-3.99%
Market Cap13.43B
Revenue(TTM)3.70B
Net Income(TTM)517.70M
Analysts80
Price Target194.12 (12.7%)
Short Float %1.8%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP20.92%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.32%
Min EPS beat(2)-0.08%
Max EPS beat(2)0.72%
EPS beat(4)3
Avg EPS beat(4)0.54%
Min EPS beat(4)-0.08%
Max EPS beat(4)0.8%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)10
Avg EPS beat(12)2.76%
EPS beat(16)12
Avg EPS beat(16)2.42%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)1.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.43%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.43%
PT rev (1m)1.33%
PT rev (3m)10.7%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.14%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.47 | ||
| Fwd PE | 23.09 | ||
| P/S | 3.63 | ||
| P/FCF | 26.74 | ||
| P/OCF | 21.37 | ||
| P/B | 5.26 | ||
| P/tB | 22.56 | ||
| EV/EBITDA | 16.88 |
EPS(TTM)6.05
EY3.51%
EPS(NY)7.46
Fwd EY4.33%
FCF(TTM)6.44
FCFY3.74%
OCF(TTM)8.06
OCFY4.68%
SpS47.43
BVpS32.78
TBVpS7.64
PEG (NY)2.38
PEG (5Y)3.13
Graham Number66.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 20.25% | ||
| ROCE | 18.4% | ||
| ROIC | 13.13% | ||
| ROICexc | 14.85% | ||
| ROICexgc | 32.93% | ||
| OM | 17.87% | ||
| PM (TTM) | 13.99% | ||
| GM | 34.96% | ||
| FCFM | 13.58% |
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%
ROICexgc growth 3Y4.62%
ROICexgc 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-Score6
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 87.64% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 16.29 | ||
| Cash Conversion | 78.06% | ||
| Profit Quality | 97.04% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 5.38 |
F-Score6
WACC9.44%
ROIC/WACC1.39
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)7.65%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%10.07%
EPS Next Y11.96%
EPS Next 2Y12.73%
EPS Next 3Y11.55%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
Revenue Next Year6.05%
Revenue Next 2Y5.7%
Revenue Next 3Y5.19%
Revenue Next 5Y5.44%
EBIT growth 1Y9.27%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
EBIT Next 5Y12.02%
FCF growth 1Y57.74%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y49.24%
OCF growth 3YN/A
OCF growth 5Y9.41%