ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
176.82 USD
+1.62 (+0.92%)
176.82 USD
0 (0%)
Overall ITT gets a fundamental rating of 6 out of 10. We evaluated ITT against 129 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.
ITT had a positive operating cash flow in the past year.
In the past 5 years ITT has always 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 (10.32%) than 81.40% of its industry peers.
ITT has a better Return On Equity (20.25%) than 84.50% of its industry peers.
With an excellent Return On Invested Capital value of 13.13%, ITT belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.00%.
| 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
With an excellent Profit Margin value of 13.99%, ITT belongs to the best of the industry, outperforming 85.27% of the companies in the same industry.
ITT's Profit Margin has improved in the last couple of years.
ITT has a better Operating Margin (17.87%) than 84.50% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
ITT has a Gross Margin of 34.96%. This is in the better half of the industry: ITT outperforms 61.24% of its industry peers.
ITT's Gross Margin has been stable in the last couple of years.
| 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.
ITT has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.44 indicates that ITT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.44, ITT belongs to the top of the industry, outperforming 81.40% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.13, ITT is doing good in the industry, outperforming 75.19% of the companies in the same industry.
ITT has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ITT (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.44 |
ROIC/WACC1.32
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.45 indicates that ITT should not have too much problems paying its short term obligations.
ITT's Current ratio of 1.45 is on the low side compared to the rest of the industry. ITT is outperformed by 75.97% 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.
Looking at the Quick ratio, with a value of 0.99, ITT is doing worse than 65.89% of the companies in the same industry.
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 | 1.45 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
ITT shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.65%.
The Earnings Per Share has been growing by 9.09% on average over the past years. This is quite good.
ITT shows a small growth in Revenue. In the last year, the Revenue has grown by 6.69%.
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
The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
ITT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y12%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
EPS Next 5Y11.84%
Revenue Next Year5.89%
Revenue Next 2Y5.6%
Revenue Next 3Y5.13%
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 29.23.
Compared to the rest of the industry, the Price/Earnings ratio of ITT is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ITT to the average of the S&P500 Index (27.32), we can say ITT is valued inline with the index average.
ITT is valuated rather expensively with a Price/Forward Earnings ratio of 23.85.
ITT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.89. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | 23.85 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.45 | ||
| EV/EBITDA | 17.17 |
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)2.44
PEG (5Y)3.22
EPS Next 2Y12.39%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 1.74, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of ITT is nicely growing with an annual growth rate of 16.67%!
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
20.92% of the earnings are spent on dividend by ITT. This is a low number and sustainable payout ratio.
ITT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.92%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
176.82
+1.62 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.45%
Inst Owner Change-2.09%
Ins Owners0.64%
Ins Owner Change-3.99%
Market Cap13.79B
Analysts80
Price Target191.57 (8.34%)
Short Float %1.61%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)2.18%
PT rev (3m)9.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.41%
EPS NY rev (1m)0%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.23 | ||
| Fwd PE | 23.85 | ||
| P/S | 3.73 | ||
| P/FCF | 27.45 | ||
| P/OCF | 21.94 | ||
| P/B | 5.39 | ||
| P/tB | 23.16 | ||
| EV/EBITDA | 17.17 |
EPS(TTM)6.05
EY3.42%
EPS(NY)7.41
Fwd EY4.19%
FCF(TTM)6.44
FCFY3.64%
OCF(TTM)8.06
OCFY4.56%
SpS47.43
BVpS32.78
TBVpS7.64
PEG (NY)2.44
PEG (5Y)3.22
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%
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-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 | 5.44 |
F-Score6
WACC9.96%
ROIC/WACC1.32
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 Y12%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
Revenue Next Year5.89%
Revenue Next 2Y5.6%
Revenue Next 3Y5.13%
Revenue Next 5Y5.44%
EBIT growth 1Y9.27%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.02%
EBIT Next 3Y14.17%
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%