ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
182.16 USD
-2.52 (-1.36%)
182.16 USD
0 (0%)
ITT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making ITT a very profitable company, without any liquidiy or solvency issues. ITT is valied quite expensively at the moment, while it does show a decent growth rate. 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.
Each year in the past 5 years ITT has been profitable.
Of the past 5 years ITT 4 years had a positive operating cash flow.
1.2 Ratios
ITT has a better Return On Assets (9.55%) than 80.77% of its industry peers.
The Return On Equity of ITT (18.14%) is better than 83.08% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.48%, ITT belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.25%.
The last Return On Invested Capital (13.48%) for ITT is above the 3 year average (13.31%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 12.67%, ITT belongs to the best of the industry, outperforming 83.85% 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 83.85% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
With a decent Gross Margin value of 35.00%, ITT is doing good in the industry, outperforming 61.54% of the companies in the same industry.
ITT's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for ITT has been reduced compared to 5 years ago.
Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.78 indicates that ITT is not in any danger for bankruptcy at the moment.
ITT has a Altman-Z score of 5.78. This is amongst the best in the industry. ITT outperforms 84.62% 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.
Looking at the Debt to FCF ratio, with a value of 1.82, ITT belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that ITT is not too dependend on debt financing.
ITT's Debt to Equity ratio of 0.37 is in line compared to the rest of the industry. ITT outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.78 |
ROIC/WACC1.4
WACC9.65%
2.3 Liquidity
ITT has a Current Ratio of 1.52. 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 Current ratio of 1.52 is on the low side compared to the rest of the industry. ITT is outperformed by 73.85% of its industry peers.
A Quick Ratio of 1.05 indicates that ITT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, ITT is doing worse than 62.31% 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 | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.56% over the past year.
ITT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.09% yearly.
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 Y13.85%
EPS Next 2Y13.66%
EPS Next 3Y12.3%
EPS Next 5Y12.04%
Revenue Next Year6.57%
Revenue Next 2Y6.09%
Revenue Next 3Y5.79%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.60, the valuation of ITT can be described as expensive.
ITT's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.56. ITT is around the same levels.
ITT is valuated rather expensively with a Price/Forward Earnings ratio of 24.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITT is on the same level as its industry peers.
ITT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.62, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.02 |
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 | 25.98 | ||
| EV/EBITDA | 17.47 |
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.
A more expensive valuation may be justified as ITT's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)2.06
PEG (5Y)3.15
EPS Next 2Y13.66%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, ITT has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, ITT pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of ITT grows each year by 16.67%, which is quite nice.
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
22.66% of the earnings are spent on dividend by ITT. This is a low number and 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 2Y13.66%
EPS Next 3Y12.3%
182.16
-2.52 (-1.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change-1.2%
Ins Owners0.56%
Ins Owner Change-9.12%
Market Cap14.21B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target197.51 (8.43%)
Short Float %1.47%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP22.66%
Div Incr Years20
Div Non Decr Years20
Ex-Date
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)1.75%
PT rev (3m)5.34%
EPS NQ rev (1m)2.15%
EPS NQ rev (3m)2.42%
EPS NY rev (1m)1.69%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.6 | ||
| Fwd PE | 24.02 | ||
| P/S | 3.73 | ||
| P/FCF | 25.98 | ||
| P/OCF | 21.41 | ||
| P/B | 5.33 | ||
| P/tB | 19.7 | ||
| EV/EBITDA | 17.47 |
EPS(TTM)6.37
EY3.5%
EPS(NY)7.58
Fwd EY4.16%
FCF(TTM)7.01
FCFY3.85%
OCF(TTM)8.51
OCFY4.67%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)2.06
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 | 5.78 |
F-Score6
WACC9.65%
ROIC/WACC1.4
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 Y13.85%
EPS Next 2Y13.66%
EPS Next 3Y12.3%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.87%
Revenue Next Year6.57%
Revenue Next 2Y6.09%
Revenue Next 3Y5.79%
Revenue Next 5Y6.58%
EBIT growth 1Y9.79%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
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
What is the fundamental rating for ITT stock?
ChartMill assigns a fundamental rating of 7 / 10 to ITT.
What is the valuation status for ITT stock?
ChartMill assigns a valuation rating of 3 / 10 to ITT INC (ITT). This can be considered as Overvalued.
How profitable is ITT INC (ITT) stock?
ITT INC (ITT) has a profitability rating of 9 / 10.
Can you provide the financial health for ITT stock?
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%.