ITT INC (ITT) Stock Fundamental Analysis
NYSE:ITT - US45073V1089 - Common Stock
170.88 USD
-1.02 (-0.59%)
170.88 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. ITT has an excellent profitability rating, but 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
ITT had positive earnings in the past year.
In the past year ITT had a positive cash flow from operations.
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
The Return On Assets of ITT (10.32%) is better than 80.47% of its industry peers.
Looking at the Return On Equity, with a value of 20.25%, ITT belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
The Return On Invested Capital of ITT (13.13%) is better than 80.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 9.99%.
| 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 85.16% of its industry peers.
ITT's Profit Margin has improved in the last couple of years.
ITT has a better Operating Margin (17.87%) than 84.38% 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 60.94% 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
ITT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 5.36 indicates that ITT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ITT (5.36) is better than 80.47% of its industry peers.
ITT has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as ITT would need 2.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.13, ITT is in the better half of the industry, outperforming 75.78% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that ITT is not too dependend on debt financing.
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 | 5.36 |
ROIC/WACC1.28
WACC10.23%
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.
Looking at the Current ratio, with a value of 1.45, ITT is doing worse than 76.56% of the companies in the same industry.
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.
ITT has a Quick ratio of 0.99. This is in the lower half of the industry: ITT underperforms 66.41% 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.
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 been growing slightly by 6.69% in the past year.
The Revenue has been growing slightly by 4.99% on average over the past years.
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.
Based on estimates for the next years, ITT will show a small growth in Revenue. The Revenue will grow by 5.44% on average per year.
EPS Next Y12%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
EPS Next 5Y11.84%
Revenue Next Year6.03%
Revenue Next 2Y5.6%
Revenue Next 3Y5%
Revenue Next 5Y5.44%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.24 indicates a quite expensive valuation of ITT.
ITT's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ITT to the average of the S&P500 Index (27.06), we can say ITT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.05, the valuation of ITT can be described as rather expensive.
ITT's Price/Forward Earnings ratio is in line with the industry average.
ITT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 23.05 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA is on the same level as the industry average.
ITT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.53 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ITT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.35
PEG (5Y)3.11
EPS Next 2Y12.39%
EPS Next 3Y10.74%
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 1.78.
With a Dividend Yield of 0.82, ITT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 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.
The dividend of ITT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.92%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
170.88
-1.02 (-0.59%)
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 Change2.91%
Market Cap13.33B
Analysts80
Price Target187.49 (9.72%)
Short Float %1.62%
Short Ratio3.21
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)0%
PT rev (3m)7.14%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.99%
Revenue NY rev (1m)1.46%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.24 | ||
| Fwd PE | 23.05 | ||
| P/S | 3.6 | ||
| P/FCF | 26.53 | ||
| P/OCF | 21.2 | ||
| P/B | 5.21 | ||
| P/tB | 22.38 | ||
| EV/EBITDA | 16.75 |
EPS(TTM)6.05
EY3.54%
EPS(NY)7.41
Fwd EY4.34%
FCF(TTM)6.44
FCFY3.77%
OCF(TTM)8.06
OCFY4.72%
SpS47.43
BVpS32.78
TBVpS7.64
PEG (NY)2.35
PEG (5Y)3.11
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 | 5.36 |
F-Score6
WACC10.23%
ROIC/WACC1.28
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 Year6.03%
Revenue Next 2Y5.6%
Revenue Next 3Y5%
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%