ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
170.97 USD
-2.02 (-1.17%)
170.97 USD
0 (0%)
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 129 industry peers in the Machinery industry. While ITT has a great profitability rating, there are some minor concerns on its financial health. ITT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
ITT had positive earnings in each of the past 5 years.
Of the past 5 years ITT 4 years had a positive operating cash flow.
1.2 Ratios
ITT has a Return On Assets of 10.32%. This is amongst the best in the industry. ITT outperforms 81.40% 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 84.50% of the companies in the same industry.
ITT's Return On Invested Capital of 13.13% is amongst the best of the industry. ITT outperforms 81.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.01%.
| 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 better Profit Margin (13.99%) than 86.05% of its industry peers.
In the last couple of years the Profit Margin of ITT has grown nicely.
With an excellent Operating Margin value of 17.87%, ITT belongs to the best of the industry, outperforming 84.50% of the companies in the same industry.
ITT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.96%, ITT is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
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.
The number of shares outstanding for ITT has been reduced compared to 1 year ago.
Compared to 5 years ago, ITT has less shares outstanding
The debt/assets ratio for ITT is higher compared to a year ago.
2.2 Solvency
ITT has an Altman-Z score of 5.40. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
ITT's Altman-Z score of 5.40 is fine compared to the rest of the industry. ITT outperforms 79.07% of its industry peers.
The Debt to FCF ratio of ITT is 2.13, which is a good value as it means it would take ITT, 2.13 years of fcf income to pay off all of its debts.
ITT has a Debt to FCF ratio of 2.13. This is in the better half of the industry: ITT outperforms 76.74% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that ITT is not too dependend on debt financing.
ITT has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.4 |
ROIC/WACC1.38
WACC9.53%
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.
ITT has a Current ratio of 1.45. This is in the lower half of the industry: ITT underperforms 76.74% of its industry peers.
A Quick Ratio of 0.99 indicates that ITT may have some problems paying its short term obligations.
ITT has a worse Quick ratio (0.99) than 66.67% of its industry peers.
| 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.
ITT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.99% yearly.
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
ITT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
ITT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y11.96%
EPS Next 2Y12.73%
EPS Next 3Y11.55%
EPS Next 5Y11.84%
Revenue Next Year6.05%
Revenue Next 2Y5.7%
Revenue Next 3Y5.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.26, ITT can be considered very expensive at the moment.
ITT's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.31, ITT is valued at the same level.
The Price/Forward Earnings ratio is 22.92, which indicates a rather expensive current valuation of ITT.
ITT's Price/Forward Earnings is on the same level as the industry average.
ITT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 22.92 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ITT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.54 | ||
| EV/EBITDA | 16.95 |
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.
PEG (NY)2.36
PEG (5Y)3.11
EPS Next 2Y12.73%
EPS Next 3Y11.55%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.81%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
5.2 History
On average, the dividend of ITT grows each year by 16.67%, 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 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
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 2Y12.73%
EPS Next 3Y11.55%
170.97
-2.02 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change0.13%
Ins Owners0.56%
Ins Owner Change-3.99%
Market Cap13.34B
Analysts80
Price Target194.12 (13.54%)
Short Float %1.8%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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)3.54%
PT rev (3m)10.93%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)0.79%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.28%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.26 | ||
| Fwd PE | 22.92 | ||
| P/S | 3.6 | ||
| P/FCF | 26.54 | ||
| P/OCF | 21.21 | ||
| P/B | 5.22 | ||
| P/tB | 22.39 | ||
| EV/EBITDA | 16.95 |
EPS(TTM)6.05
EY3.54%
EPS(NY)7.46
Fwd EY4.36%
FCF(TTM)6.44
FCFY3.77%
OCF(TTM)8.06
OCFY4.71%
SpS47.43
BVpS32.78
TBVpS7.64
PEG (NY)2.36
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 | 5.4 |
F-Score6
WACC9.53%
ROIC/WACC1.38
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 Y11.96%
EPS Next 2Y12.73%
EPS Next 3Y11.55%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
Revenue Next Year6.05%
Revenue Next 2Y5.7%
Revenue Next 3Y5.19%
Revenue Next 5Y5.44%
EBIT growth 1Y9.27%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
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%