ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
178.99 USD
+0.12 (+0.07%)
178.99 USD
0 (0%)
Overall ITT gets a fundamental rating of 7 out of 10. We evaluated ITT against 130 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make ITT a good candidate 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
Looking at the Return On Assets, with a value of 9.55%, ITT belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
ITT has a better Return On Equity (18.14%) 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.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.24%.
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
Looking at the Profit Margin, with a value of 12.67%, ITT belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
In the last couple of years the Profit Margin of ITT has grown nicely.
ITT's Operating Margin of 17.94% is amongst the best of the industry. ITT outperforms 83.85% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
ITT has a better Gross Margin (35.00%) than 61.54% of its industry peers.
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
ITT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
ITT has a worse debt/assets ratio than last year.
2.2 Solvency
ITT has an Altman-Z score of 5.67. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.67, ITT belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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.
ITT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
ITT has a Debt to Equity ratio (0.37) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.67 |
ROIC/WACC1.42
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ITT should not have too much problems paying its short term obligations.
The Current ratio of ITT (1.52) is worse than 74.62% 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.
The Quick ratio of ITT (1.05) is worse than 62.31% 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 | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
ITT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.56%, 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 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
The Earnings Per Share is expected to grow by 12.04% 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 6.58% 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
ITT is valuated quite expensively with a Price/Earnings ratio of 28.10.
The rest of the industry has a similar Price/Earnings ratio as ITT.
ITT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
A Price/Forward Earnings ratio of 23.60 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.
ITT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.1 | ||
| Fwd PE | 23.6 |
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 | 25.53 | ||
| EV/EBITDA | 16.93 |
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.
ITT's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.03
PEG (5Y)3.09
EPS Next 2Y13.66%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, ITT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.87, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of ITT is nicely growing with an annual growth rate of 16.67%!
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
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 2Y13.66%
EPS Next 3Y12.3%
178.99
+0.12 (+0.07%)
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 Cap13.96B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target197.51 (10.35%)
Short Float %1.53%
Short Ratio2.62
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 | 28.1 | ||
| Fwd PE | 23.6 | ||
| P/S | 3.66 | ||
| P/FCF | 25.53 | ||
| P/OCF | 21.04 | ||
| P/B | 5.24 | ||
| P/tB | 19.36 | ||
| EV/EBITDA | 16.93 |
EPS(TTM)6.37
EY3.56%
EPS(NY)7.58
Fwd EY4.24%
FCF(TTM)7.01
FCFY3.92%
OCF(TTM)8.51
OCFY4.75%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)2.03
PEG (5Y)3.09
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 | 5.67 |
F-Score6
WACC9.47%
ROIC/WACC1.42
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%.