ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
180.99 USD
-2.4 (-1.31%)
175.6 USD
-5.39 (-2.98%)
We assign a fundamental rating of 6 out of 10 to ITT. ITT was compared to 130 industry peers in the Machinery industry. Both the health and profitability get an excellent rating, making ITT a very profitable company, without any liquidiy or solvency issues. 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.
In the past year ITT had a positive cash flow from operations.
Each year in the past 5 years ITT has been profitable.
ITT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ITT has a Return On Assets of 9.55%. This is in the better half of the industry: ITT outperforms 78.46% of its industry peers.
ITT has a better Return On Equity (18.14%) than 80.77% of its industry peers.
The Return On Invested Capital of ITT (13.48%) is better than 80.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.46%.
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
ITT has a better Profit Margin (12.67%) than 80.77% 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 17.94%, ITT belongs to the best of the industry, outperforming 83.85% of the companies in the same industry.
ITT's Operating Margin has improved in the last couple of years.
ITT has a better Gross Margin (35.00%) than 62.31% 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
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 a worse debt to assets ratio.
2.2 Solvency
ITT has an Altman-Z score of 5.71. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
ITT has a Altman-Z score of 5.71. This is amongst the best in the industry. ITT outperforms 82.31% 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 80.77% 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.
ITT has a Debt to Equity ratio (0.37) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.4
WACC9.6%
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 73.85% of its industry peers.
A Quick Ratio of 1.05 indicates that ITT should not have too much problems paying its short term obligations.
ITT has a Quick ratio of 1.05. This is in the lower half of the industry: ITT underperforms 62.31% of its industry peers.
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
The Earnings Per Share has grown by an nice 11.56% over the past year.
The Earnings Per Share has been growing by 9.09% on average over the past years. This is quite good.
The Revenue has grown by 8.01% in the past year. This is quite good.
The Revenue has been growing slightly by 4.99% on average over the past years.
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
ITT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.04% yearly.
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 Y14.43%
EPS Next 2Y13.79%
EPS Next 3Y12.65%
EPS Next 5Y12.04%
Revenue Next Year6.84%
Revenue Next 2Y6.37%
Revenue Next 3Y6.2%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.41, the valuation of ITT can be described as expensive.
ITT's Price/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/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.81, ITT is valued on the expensive side.
ITT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.69, ITT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 23.81 |
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 | 25.82 | ||
| EV/EBITDA | 17.13 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
ITT's earnings are expected to grow with 12.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.97
PEG (5Y)3.13
EPS Next 2Y13.79%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, ITT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.84, ITT has a dividend in line with its industry peers.
With a Dividend Yield of 0.77, ITT pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
22.66% 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.
DP22.66%
EPS Next 2Y13.79%
EPS Next 3Y12.65%
180.99
-2.4 (-1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners95.83%
Inst Owner Change-1.18%
Ins Owners0.54%
Ins Owner Change-5.15%
Market Cap14.12B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target211.28 (16.74%)
Short Float %1.68%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)6.97%
PT rev (3m)12.69%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)0.51%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.41 | ||
| Fwd PE | 23.81 | ||
| P/S | 3.7 | ||
| P/FCF | 25.82 | ||
| P/OCF | 21.27 | ||
| P/B | 5.3 | ||
| P/tB | 19.58 | ||
| EV/EBITDA | 17.13 |
EPS(TTM)6.37
EY3.52%
EPS(NY)7.6
Fwd EY4.2%
FCF(TTM)7.01
FCFY3.87%
OCF(TTM)8.51
OCFY4.7%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)1.97
PEG (5Y)3.13
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 | 5.71 |
F-Score6
WACC9.6%
ROIC/WACC1.4
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 Y14.43%
EPS Next 2Y13.79%
EPS Next 3Y12.65%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.01%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.87%
Revenue Next Year6.84%
Revenue Next 2Y6.37%
Revenue Next 3Y6.2%
Revenue Next 5Y6.58%
EBIT growth 1Y9.79%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year31.76%
EBIT Next 3Y15.55%
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 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 22.66%.