ITT INC (ITT)
US45073V1089 - Common Stock
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 131 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. ITT is quite expensive at the moment. It does show a decent growth rate. 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.
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
ITT's Return On Assets of 9.76% is fine compared to the rest of the industry. ITT outperforms 77.95% of its industry peers.
The Return On Equity of ITT (17.56%) is better than 75.59% of its industry peers.
ITT has a Return On Invested Capital of 12.38%. This is in the better half of the industry: ITT outperforms 78.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is in line with the industry average of 11.22%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 17.56% | ||
| ROIC | 12.38% |
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
ITT has a Profit Margin of 13.67%. This is amongst the best in the industry. ITT outperforms 85.04% of its industry peers.
In the last couple of years the Profit Margin of ITT has remained more or less at the same level.
With an excellent Operating Margin value of 17.64%, ITT belongs to the best of the industry, outperforming 83.46% of the companies in the same industry.
ITT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 34.47%, ITT perfoms like the industry average, outperforming 59.06% of the companies in the same industry.
ITT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.64% | ||
| PM (TTM) | 13.67% | ||
| GM | 34.47% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ITT is still creating some value.
Compared to 1 year ago, ITT has less shares outstanding
Compared to 5 years ago, ITT has less shares outstanding
Compared to 1 year ago, ITT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.34 indicates that ITT is not in any danger for bankruptcy at the moment.
ITT's Altman-Z score of 5.34 is fine compared to the rest of the industry. ITT outperforms 77.17% of its industry peers.
The Debt to FCF ratio of ITT is 2.17, which is a good value as it means it would take ITT, 2.17 years of fcf income to pay off all of its debts.
ITT has a better Debt to FCF ratio (2.17) than 80.31% of its industry peers.
ITT has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
ITT has a Debt to Equity ratio of 0.30. This is in the better half of the industry: ITT outperforms 63.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.17 | ||
| Altman-Z | 5.34 |
ROIC/WACC1.31
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.58 indicates that ITT should not have too much problems paying its short term obligations.
ITT's Current ratio of 1.58 is on the low side compared to the rest of the industry. ITT is outperformed by 74.80% of its industry peers.
A Quick Ratio of 1.09 indicates that ITT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.09, ITT is doing worse than 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
ITT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.66%, 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.
The Revenue has grown by 9.36% 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 3.64% yearly.
EPS 1Y (TTM)10.66%
EPS 3Y17.64%
EPS 5Y10.03%
EPS Q2Q%6.57%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y9.83%
Revenue growth 5Y3.64%
Sales Q2Q%7.68%
3.2 Future
The Earnings Per Share is expected to grow by 11.43% 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 6.95% yearly.
EPS Next Y13.26%
EPS Next 2Y12.76%
EPS Next 3Y11.83%
EPS Next 5Y11.43%
Revenue Next Year11.18%
Revenue Next 2Y9.35%
Revenue Next 3Y7.68%
Revenue Next 5Y6.95%
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 stable.
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 24.84, which indicates a rather expensive current valuation of ITT.
Compared to the rest of the industry, the Price/Earnings ratio of ITT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.09. ITT is around the same levels.
Based on the Price/Forward Earnings ratio of 21.41, the valuation of ITT can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITT is on the same level as its industry peers.
ITT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA ratio is in line with the industry average.
ITT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.2 | ||
| EV/EBITDA | 15.54 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)2.48
EPS Next 2Y12.76%
EPS Next 3Y11.83%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 1.67, ITT has a dividend in line with its industry peers.
With a Dividend Yield of 0.88, ITT pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of ITT is nicely growing with an annual growth rate of 16.64%!
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)16.64%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
21.25% of the earnings are spent on dividend by ITT. This is a low number and sustainable payout ratio.
ITT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.25%
EPS Next 2Y12.76%
EPS Next 3Y11.83%
ITT INC
NYSE:ITT (1/2/2025, 7:36:10 PM)
After market: 141.82 0 (0%)141.82
-1.06 (-0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-0.07%
Ins Owners0.52%
Ins Owner Change3.55%
Market Cap11.56B
Analysts82.5
Price Target173.4 (22.27%)
Short Float %1.65%
Short Ratio3.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Dividend Growth(5Y)16.64%
DP21.25%
Div Incr Years20
Div Non Decr Years20
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.98%
Min EPS beat(2)0.7%
Max EPS beat(2)1.26%
EPS beat(4)3
Avg EPS beat(4)1.22%
Min EPS beat(4)-0.75%
Max EPS beat(4)3.66%
EPS beat(8)7
Avg EPS beat(8)3.79%
EPS beat(12)9
Avg EPS beat(12)2.61%
EPS beat(16)13
Avg EPS beat(16)4.41%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.91%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)2.08%
Revenue beat(8)6
Avg Revenue beat(8)0.69%
Revenue beat(12)8
Avg Revenue beat(12)0.51%
Revenue beat(16)12
Avg Revenue beat(16)1.46%
PT rev (1m)3.17%
PT rev (3m)9.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.84 | ||
| Fwd PE | 21.41 | ||
| P/S | 3.27 | ||
| P/FCF | 30.2 | ||
| P/OCF | 22.69 | ||
| P/B | 4.2 | ||
| P/tB | 14.78 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)5.71
EY4.03%
EPS(NY)6.62
Fwd EY4.67%
FCF(TTM)4.7
FCFY3.31%
OCF(TTM)6.25
OCFY4.41%
SpS43.32
BVpS33.73
TBVpS9.59
PEG (NY)1.87
PEG (5Y)2.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.76% | ||
| ROE | 17.56% | ||
| ROCE | 16.98% | ||
| ROIC | 12.38% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 31.14% | ||
| OM | 17.64% | ||
| PM (TTM) | 13.67% | ||
| GM | 34.47% | ||
| FCFM | 10.84% |
ROA(3y)9.67%
ROA(5y)7.73%
ROE(3y)15.59%
ROE(5y)13.17%
ROIC(3y)12.94%
ROIC(5y)11.24%
ROICexc(3y)15.98%
ROICexc(5y)14.01%
ROICexgc(3y)29.06%
ROICexgc(5y)24.84%
ROCE(3y)17.79%
ROCE(5y)15.14%
ROICexcg growth 3Y19.64%
ROICexcg growth 5Y9.07%
ROICexc growth 3Y17.26%
ROICexc growth 5Y8.08%
OM growth 3Y5.95%
OM growth 5Y4.79%
PM growth 3Y61.91%
PM growth 5Y0.55%
GM growth 3Y2.24%
GM growth 5Y0.86%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.17 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 99.61% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 25.22 | ||
| Cash Conversion | 67.9% | ||
| Profit Quality | 79.27% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 5.34 |
F-Score5
WACC9.45%
ROIC/WACC1.31
Cap/Depr(3y)91.15%
Cap/Depr(5y)82.16%
Cap/Sales(3y)3.32%
Cap/Sales(5y)3.15%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.66%
EPS 3Y17.64%
EPS 5Y10.03%
EPS Q2Q%6.57%
EPS Next Y13.26%
EPS Next 2Y12.76%
EPS Next 3Y11.83%
EPS Next 5Y11.43%
Revenue 1Y (TTM)9.36%
Revenue growth 3Y9.83%
Revenue growth 5Y3.64%
Sales Q2Q%7.68%
Revenue Next Year11.18%
Revenue Next 2Y9.35%
Revenue Next 3Y7.68%
Revenue Next 5Y6.95%
EBIT growth 1Y13.36%
EBIT growth 3Y16.37%
EBIT growth 5Y8.61%
EBIT Next Year40.07%
EBIT Next 3Y17.72%
EBIT Next 5Y14.86%
FCF growth 1Y205.67%
FCF growth 3Y4.84%
FCF growth 5Y9.59%
OCF growth 1Y117%
OCF growth 3Y7.16%
OCF growth 5Y7.9%