ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
182.05 USD
+1.85 (+1.03%)
182.05 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ITT. ITT was compared to 132 industry peers in the Machinery industry. ITT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, ITT is valued expensive at the moment. With these ratings, ITT could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year ITT was profitable.
ITT had a positive operating cash flow in the past year.
In the past 5 years ITT has always been profitable.
Of the past 5 years ITT 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.55%, ITT is doing good in the industry, outperforming 78.79% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.14%, ITT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
ITT has a better Return On Invested Capital (13.48%) than 82.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.22%.
The 3 year average ROIC (13.31%) for ITT is below the current ROIC(13.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 18.14% | ||
| ROIC | 13.48% |
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 12.67%, ITT belongs to the top of the industry, outperforming 81.06% of the companies in the same industry.
ITT's Profit Margin has improved in the last couple of years.
ITT's Operating Margin of 17.94% is amongst the best of the industry. ITT outperforms 84.09% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
Looking at the Gross Margin, with a value of 35.00%, ITT is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
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 | 17.94% | ||
| PM (TTM) | 12.67% | ||
| GM | 35% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ITT is still creating some value.
The number of shares outstanding for ITT has been reduced compared to 1 year ago.
ITT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
ITT has an Altman-Z score of 5.70. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ITT (5.70) is better than 80.30% of its industry peers.
ITT has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
ITT has a Debt to FCF ratio of 1.82. This is in the better half of the industry: ITT outperforms 79.55% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that ITT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.37, ITT perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.7 |
ROIC/WACC1.39
WACC9.72%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ITT should not have too much problems paying its short term obligations.
ITT has a Current ratio of 1.52. This is in the lower half of the industry: ITT underperforms 71.97% of its industry peers.
ITT has a Quick Ratio of 1.05. This is a normal value and indicates that ITT is financially healthy and should not expect problems in meeting its short term obligations.
ITT's Quick ratio of 1.05 is on the low side compared to the rest of the industry. ITT is outperformed by 62.12% of its industry peers.
ITT does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.56% over the past year.
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.
The Revenue has grown by 8.01% in the past year. This is quite good.
ITT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
EPS 1Y (TTM)11.56%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%21.92%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.87%
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 12.04% yearly.
Based on estimates for the next years, ITT will show a small growth in Revenue. The Revenue will grow by 6.58% on average per year.
EPS Next Y14.68%
EPS Next 2Y13.92%
EPS Next 3Y12.97%
EPS Next 5Y12.04%
Revenue Next Year6.98%
Revenue Next 2Y6.57%
Revenue Next 3Y6.62%
Revenue Next 5Y6.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.58, the valuation of ITT can be described as expensive.
ITT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.19, ITT is valued at the same level.
ITT is valuated rather expensively with a Price/Forward Earnings ratio of 23.90.
The rest of the industry has a similar Price/Forward Earnings ratio as ITT.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, ITT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITT is on the same level as its industry peers.
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 | 25.97 | ||
| EV/EBITDA | 17.05 |
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.
A more expensive valuation may be justified as ITT's earnings are expected to grow with 12.97% in the coming years.
PEG (NY)1.95
PEG (5Y)3.15
EPS Next 2Y13.92%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.78%, which is pretty low.
ITT's Dividend Yield is a higher than the industry average which is at 0.81.
Compared to an average S&P500 Dividend Yield of 1.90, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 22.66% 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.
DP22.66%
EPS Next 2Y13.92%
EPS Next 3Y12.97%
182.05
+1.85 (+1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners86.94%
Inst Owner Change0%
Ins Owners0.45%
Ins Owner Change-5.55%
Market Cap14.20B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target206.98 (13.69%)
Short Float %2.62%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP22.66%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.19%
Min EPS beat(2)0.72%
Max EPS beat(2)5.66%
EPS beat(4)3
Avg EPS beat(4)1.78%
Min EPS beat(4)-0.08%
Max EPS beat(4)5.66%
EPS beat(8)6
Avg EPS beat(8)1.5%
EPS beat(12)10
Avg EPS beat(12)3.12%
EPS beat(16)12
Avg EPS beat(16)2.4%
Revenue beat(2)2
Avg Revenue beat(2)1.5%
Min Revenue beat(2)1.43%
Max Revenue beat(2)1.57%
Revenue beat(4)2
Avg Revenue beat(4)0.4%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.57%
Revenue beat(8)4
Avg Revenue beat(8)0.18%
Revenue beat(12)8
Avg Revenue beat(12)0.59%
Revenue beat(16)10
Avg Revenue beat(16)0.48%
PT rev (1m)-2.04%
PT rev (3m)6.62%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)2.6%
EPS NY rev (1m)0.22%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.58 | ||
| Fwd PE | 23.9 | ||
| P/S | 3.72 | ||
| P/FCF | 25.97 | ||
| P/OCF | 21.4 | ||
| P/B | 5.33 | ||
| P/tB | 19.69 | ||
| EV/EBITDA | 17.05 |
EPS(TTM)6.37
EY3.5%
EPS(NY)7.62
Fwd EY4.18%
FCF(TTM)7.01
FCFY3.85%
OCF(TTM)8.51
OCFY4.67%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)1.95
PEG (5Y)3.15
Graham Number69.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 18.14% | ||
| ROCE | 18.72% | ||
| ROIC | 13.48% | ||
| ROICexc | 15.44% | ||
| ROICexgc | 34.08% | ||
| OM | 17.94% | ||
| PM (TTM) | 12.67% | ||
| GM | 35% | ||
| FCFM | 14.34% |
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%
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 81.24% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 15.76 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 113.14% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.7 |
F-Score6
WACC9.72%
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)11.56%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%21.92%
EPS Next Y14.68%
EPS Next 2Y13.92%
EPS Next 3Y12.97%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.87%
Revenue Next Year6.98%
Revenue Next 2Y6.57%
Revenue Next 3Y6.62%
Revenue Next 5Y6.58%
EBIT growth 1Y9.79%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year31.87%
EBIT Next 3Y15.78%
EBIT Next 5Y13.11%
FCF growth 1Y26.75%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y25.2%
OCF growth 3YN/A
OCF growth 5Y9.41%
ITT INC / ITT FAQ
Can you provide the ChartMill fundamental rating for ITT INC?
ChartMill assigns a fundamental rating of 6 / 10 to ITT.
Can you provide the valuation status for ITT INC?
ChartMill assigns a valuation rating of 3 / 10 to ITT INC (ITT). This can be considered as Overvalued.
What is the profitability of ITT stock?
ITT INC (ITT) has a profitability rating of 8 / 10.
How financially healthy is ITT INC?
The financial health rating of ITT INC (ITT) is 7 / 10.
How sustainable is the dividend of ITT INC (ITT) stock?
The dividend rating of ITT INC (ITT) is 5 / 10 and the dividend payout ratio is 22.66%.