ITT INC (ITT) Stock Fundamental Analysis
NYSE:ITT - New York Stock Exchange, Inc. - US45073V1089 - Common Stock - Currency: USD
Overall ITT gets a fundamental rating of 6 out of 10. We evaluated ITT against 128 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make ITT a good candidate for quality investing.
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.
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 11.01%, ITT belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
ITT's Return On Equity of 18.77% is amongst the best of the industry. ITT outperforms 80.47% of its industry peers.
ITT has a better Return On Invested Capital (13.49%) than 80.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.75%.
The last Return On Invested Capital (13.49%) for ITT is above the 3 year average (13.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.01% | ||
| ROE | 18.77% | ||
| ROIC | 13.49% |
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 14.28%. This is amongst the best in the industry. ITT outperforms 85.94% of its industry peers.
In the last couple of years the Profit Margin of ITT has grown nicely.
ITT's Operating Margin of 17.62% is amongst the best of the industry. ITT outperforms 82.81% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
ITT's Gross Margin of 34.35% is fine compared to the rest 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 | 17.62% | ||
| PM (TTM) | 14.28% | ||
| GM | 34.35% |
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.
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.
Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.47 indicates that ITT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.47, ITT belongs to the top of the industry, outperforming 82.03% of the companies in the same industry.
The Debt to FCF ratio of ITT is 1.51, which is an excellent value as it means it would take ITT, only 1.51 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.51, ITT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that ITT is not too dependend on debt financing.
ITT has a Debt to Equity ratio of 0.24. This is in the better half of the industry: ITT outperforms 66.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.47 |
ROIC/WACC1.35
WACC10.02%
2.3 Liquidity
ITT has a Current Ratio of 1.40. This is a normal value and indicates that ITT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ITT (1.40) is worse than 77.34% of its industry peers.
A Quick Ratio of 0.96 indicates that ITT may have some problems paying its short term obligations.
ITT has a Quick ratio of 0.96. This is in the lower half of the industry: ITT underperforms 68.75% 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 | 1.4 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.67% over the past year.
ITT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.09% yearly.
Looking at the last year, ITT shows a quite strong growth in Revenue. The Revenue has grown by 10.59% in the last 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)12.67%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%11.94%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.05%
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 8.45% yearly.
The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y8.76%
EPS Next 2Y10.08%
EPS Next 3Y9.33%
EPS Next 5Y8.45%
Revenue Next Year3.85%
Revenue Next 2Y4.42%
Revenue Next 3Y4.39%
Revenue Next 5Y4.57%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.36, which indicates a rather expensive current valuation of ITT.
The rest of the industry has a similar Price/Earnings ratio as ITT.
When comparing the Price/Earnings ratio of ITT to the average of the S&P500 Index (27.63), we can say ITT is valued slightly cheaper.
ITT is valuated rather expensively with a Price/Forward Earnings ratio of 19.64.
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 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 19.64 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA ratio is in line with the industry average.
ITT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.17 | ||
| EV/EBITDA | 13.09 |
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.
PEG (NY)2.44
PEG (5Y)2.35
EPS Next 2Y10.08%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
ITT has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of ITT is nicely growing with an annual growth rate of 16.67%!
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
ITT pays out 20.19% of its income as dividend. This is a sustainable payout ratio.
ITT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.19%
EPS Next 2Y10.08%
EPS Next 3Y9.33%
125.4
-2.71 (-2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.57%
Inst Owner Change0.29%
Ins Owners0.59%
Ins Owner Change9.57%
Market Cap10.15B
Analysts81.18
Price Target176.57 (40.81%)
Short Float %1.4%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP20.19%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.7%
Max EPS beat(2)0.8%
EPS beat(4)4
Avg EPS beat(4)1.6%
Min EPS beat(4)0.7%
Max EPS beat(4)3.66%
EPS beat(8)7
Avg EPS beat(8)3.5%
EPS beat(12)10
Avg EPS beat(12)2.7%
EPS beat(16)13
Avg EPS beat(16)3.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)0.79%
Revenue beat(16)11
Avg Revenue beat(16)0.97%
PT rev (1m)0%
PT rev (3m)1.83%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)-6.42%
EPS NY rev (1m)-1.31%
EPS NY rev (3m)-3.62%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-5.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 19.64 | ||
| P/S | 2.8 | ||
| P/FCF | 23.17 | ||
| P/OCF | 18.06 | ||
| P/B | 3.68 | ||
| P/tB | 11.63 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)5.87
EY4.68%
EPS(NY)6.38
Fwd EY5.09%
FCF(TTM)5.41
FCFY4.32%
OCF(TTM)6.94
OCFY5.54%
SpS44.84
BVpS34.12
TBVpS10.78
PEG (NY)2.44
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.01% | ||
| ROE | 18.77% | ||
| ROCE | 18.94% | ||
| ROIC | 13.49% | ||
| ROICexc | 15.25% | ||
| ROICexgc | 34.81% | ||
| OM | 17.62% | ||
| PM (TTM) | 14.28% | ||
| GM | 34.35% | ||
| FCFM | 12.07% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 90.24% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 19.15 | ||
| Cash Conversion | 72.35% | ||
| Profit Quality | 84.51% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 5.47 |
F-Score6
WACC10.02%
ROIC/WACC1.35
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)12.67%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%11.94%
EPS Next Y8.76%
EPS Next 2Y10.08%
EPS Next 3Y9.33%
EPS Next 5Y8.45%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.05%
Revenue Next Year3.85%
Revenue Next 2Y4.42%
Revenue Next 3Y4.39%
Revenue Next 5Y4.57%
EBIT growth 1Y14.73%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.5%
EBIT Next 3Y14.94%
EBIT Next 5Y10.37%
FCF growth 1Y1.88%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y4.54%
OCF growth 3YN/A
OCF growth 5Y9.41%