ITT INC (ITT)
US45073V1089 - Common Stock
Overall ITT gets a fundamental rating of 7 out of 10. We evaluated ITT against 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. ITT is valied quite expensively at the moment, while it does show a decent growth rate. This makes ITT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
ITT had positive earnings in the past year.
In the past year ITT had a positive cash flow from operations.
ITT had positive earnings in each of the past 5 years.
ITT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of ITT (10.44%) is better than 83.72% of its industry peers.
ITT's Return On Equity of 16.24% is fine compared to the rest of the industry. ITT outperforms 72.87% of its industry peers.
ITT has a better Return On Invested Capital (14.31%) than 81.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.77%.
The last Return On Invested Capital (14.31%) for ITT is above the 3 year average (12.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 16.24% | ||
| ROIC | 14.31% |
ROA(3y)9.67%
ROA(5y)7.73%
ROE(3y)15.59%
ROE(5y)13.17%
ROIC(3y)12.94%
ROIC(5y)11.24%
1.3 Margins
With an excellent Profit Margin value of 12.50%, ITT belongs to the best of the industry, outperforming 82.17% of the companies in the same industry.
In the last couple of years the Profit Margin of ITT has remained more or less at the same level.
ITT has a better Operating Margin (16.77%) than 80.62% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
ITT has a Gross Margin of 33.73%. This is in the better half of the industry: ITT outperforms 62.79% 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 | 16.77% | ||
| PM (TTM) | 12.5% | ||
| GM | 33.73% |
OM growth 3Y5.95%
OM growth 5Y4.79%
PM growth 3Y61.91%
PM growth 5Y0.55%
GM growth 3Y2.24%
GM growth 5Y0.86%
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.
ITT has less shares outstanding than it did 1 year ago.
ITT has less shares outstanding than it did 5 years ago.
ITT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.08 indicates that ITT is not in any danger for bankruptcy at the moment.
ITT's Altman-Z score of 7.08 is amongst the best of the industry. ITT outperforms 86.05% of its industry peers.
ITT has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.45, ITT belongs to the top of the industry, outperforming 91.47% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that ITT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, ITT is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 7.08 |
ROIC/WACC1.55
WACC9.23%
2.3 Liquidity
A Current Ratio of 1.79 indicates that ITT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.79, ITT is doing worse than 62.79% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that ITT should not have too much problems paying its short term obligations.
ITT's Quick ratio of 1.24 is in line compared to the rest of the industry. ITT outperforms 52.71% 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 | 1.79 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
ITT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.34%, 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 10.03% on average per year.
Looking at the last year, ITT shows a quite strong growth in Revenue. The Revenue has grown by 9.88% in the last year.
The Revenue has been growing slightly by 3.64% on average over the past years.
EPS 1Y (TTM)17.34%
EPS 3Y17.64%
EPS 5Y10.03%
EPS growth Q2Q3.88%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y9.83%
Revenue growth 5Y3.64%
Revenue growth Q2Q7.04%
3.2 Future
The Earnings Per Share is expected to grow by 12.32% on average over the next years. This is quite good.
Based on estimates for the next years, ITT will show a small growth in Revenue. The Revenue will grow by 6.66% on average per year.
EPS Next Y11.95%
EPS Next 2Y12.51%
EPS Next 3Y11.6%
EPS Next 5Y12.32%
Revenue Next Year11.24%
Revenue Next 2Y8.61%
Revenue Next 3Y7.42%
Revenue Next 5Y6.66%
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
With a Price/Earnings ratio of 24.81, ITT is valued on the expensive side.
ITT's Price/Earnings ratio is in line with the industry average.
ITT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.16 indicates a rather expensive valuation of ITT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITT is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.92. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 22.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITT.
ITT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 15.4 |
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)2.08
PEG (5Y)2.47
EPS Next 2Y12.51%
EPS Next 3Y11.6%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, ITT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.71, ITT pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of ITT grows each year by 16.64%, 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)16.64%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
ITT pays out 23.34% 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.
DP23.34%
EPS Next 2Y12.51%
EPS Next 3Y11.6%
ITT INC
NYSE:ITT (5/1/2024, 7:04:02 PM)
After market: 125.4 -3.88 (-3%)129.28
-0.06 (-0.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.63B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.81 | ||
| Fwd PE | 22.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.08
PEG (5Y)2.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.44% | ||
| ROE | 16.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.77% | ||
| PM (TTM) | 12.5% | ||
| GM | 33.73% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)17.34%
EPS 3Y17.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.88%
Revenue growth 3Y9.83%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y