ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
184.68 USD
-0.07 (-0.04%)
184.68 USD
0 (0%)
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 130 industry peers in the Machinery industry. ITT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, ITT is valued expensive at the moment. These ratings would make ITT suitable for quality investing!
1. Profitability
1.1 Basic Checks
ITT had positive earnings in the past year.
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
The Return On Assets of ITT (9.55%) is better than 80.00% of its industry peers.
ITT has a better Return On Equity (18.12%) than 82.31% of its industry peers.
ITT has a better Return On Invested Capital (13.48%) than 80.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.28%.
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 | 18.12% | ||
| 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
ITT has a Profit Margin of 12.67%. This is amongst the best in the industry. ITT outperforms 83.85% of its industry peers.
In the last couple of years the Profit Margin of ITT has grown nicely.
Looking at the Operating Margin, with a value of 17.94%, 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 Operating Margin of ITT has grown nicely.
ITT's Gross Margin of 35.00% is fine compared to the rest of the industry. ITT outperforms 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 3Y3.54%
OM growth 5Y5.05%
PM growth 3Y7.68%
PM growth 5Y4.55%
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.
ITT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ITT has less shares outstanding
Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.79 indicates that ITT is not in any danger for bankruptcy at the moment.
The Altman-Z score of ITT (5.79) is better than 84.62% of its industry peers.
The Debt to FCF ratio of ITT is 1.82, which is an excellent value as it means it would take ITT, only 1.82 years of fcf income to pay off all of its debts.
ITT has a Debt to FCF ratio of 1.82. This is amongst the best in the industry. ITT outperforms 81.54% of its industry peers.
ITT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.37, ITT perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.79 |
ROIC/WACC1.42
WACC9.52%
2.3 Liquidity
A Current Ratio of 1.52 indicates that ITT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, ITT is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.05, ITT is doing worse than 60.77% 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
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.
Looking at the last year, ITT shows a quite strong growth in Revenue. The Revenue has grown by 8.01% in the last year.
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)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.
ITT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.99, which means the current valuation is very expensive for ITT.
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 (25.89), we can say ITT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 24.35, the valuation of ITT can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as ITT.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ITT is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITT.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.33 | ||
| EV/EBITDA | 17.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ITT 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)2.09
PEG (5Y)3.19
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 1.86, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of ITT grows each year by 16.68%, 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)16.68%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
22.77% 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.
DP22.77%
EPS Next 2Y13.66%
EPS Next 3Y12.3%
184.68
-0.07 (-0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change-1.46%
Ins Owners0.56%
Ins Owner Change-4.4%
Market Cap14.41B
Revenue(TTM)3.81B
Net Income(TTM)483.00M
Analysts80
Price Target197.51 (6.95%)
Short Float %1.47%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.28
Dividend Growth(5Y)16.68%
DP22.77%
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)2.3%
EPS NQ rev (3m)2.47%
EPS NY rev (1m)1.69%
EPS NY rev (3m)3%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.99 | ||
| Fwd PE | 24.35 | ||
| P/S | 3.78 | ||
| P/FCF | 26.33 | ||
| P/OCF | 21.69 | ||
| P/B | 5.41 | ||
| P/tB | 19.98 | ||
| EV/EBITDA | 17.48 |
EPS(TTM)6.37
EY3.45%
EPS(NY)7.58
Fwd EY4.11%
FCF(TTM)7.01
FCFY3.8%
OCF(TTM)8.51
OCFY4.61%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)2.09
PEG (5Y)3.19
Graham Number69.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 18.12% | ||
| ROCE | 18.72% | ||
| ROIC | 13.48% | ||
| ROICexc | 15.44% | ||
| ROICexgc | 34.09% | ||
| 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)15.71%
ROICexc(5y)14.77%
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-1.82%
ROICexc growth 5Y5.78%
OM growth 3Y3.54%
OM growth 5Y5.05%
PM growth 3Y7.68%
PM growth 5Y4.55%
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 | 81.25% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 15.91 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 113.25% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.79 |
F-Score6
WACC9.52%
ROIC/WACC1.42
Cap/Depr(3y)95.44%
Cap/Depr(5y)84.25%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.19%
Profit Quality(3y)78.85%
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 1Y9.82%
EBIT growth 3Y13.38%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
EBIT Next 5Y13.11%
FCF growth 1Y26.8%
FCF growth 3YN/A
FCF growth 5Y10.39%
OCF growth 1Y25.26%
OCF growth 3YN/A
OCF growth 5Y9.4%
ITT INC / ITT FAQ
What is the fundamental rating for ITT stock?
ChartMill assigns a fundamental rating of 6 / 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 8 / 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 22.77%.