ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
184.3 USD
+0.78 (+0.43%)
184.3 USD
0 (0%)
ITT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 130 industry peers in the Machinery industry. ITT gets an excellent profitability rating and is at the same time showing great financial health properties. ITT is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, ITT could be worth investigating further 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 amongst the best in the industry. ITT outperforms 80.77% of its industry peers.
ITT has a Return On Equity of 18.14%. This is amongst the best in the industry. ITT outperforms 83.08% of its industry peers.
ITT's Return On Invested Capital of 13.48% is amongst the best of the industry. ITT outperforms 81.54% of its industry peers.
ITT had an Average Return On Invested Capital over the past 3 years of 13.31%. This is above the industry average of 10.34%.
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 83.85% of its industry peers.
In the last couple of years the Profit Margin of ITT has grown nicely.
The Operating Margin of ITT (17.94%) is better than 84.62% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.00%, ITT is in the better half of the industry, outperforming 62.31% 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 | 17.94% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ITT is creating some value.
The number of shares outstanding for ITT has been reduced compared to 1 year ago.
ITT has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ITT is higher compared to a year ago.
2.2 Solvency
ITT has an Altman-Z score of 5.78. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.78, ITT belongs to the top of the industry, outperforming 83.08% of the companies in the same industry.
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's Debt to FCF ratio of 1.82 is amongst the best of the industry. ITT outperforms 82.31% 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 | 5.78 |
ROIC/WACC1.44
WACC9.37%
2.3 Liquidity
ITT has a Current Ratio of 1.52. This is a normal value and indicates that ITT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.52, ITT is not doing good in the industry: 74.62% of the companies in the same industry are doing better.
A Quick Ratio of 1.05 indicates that ITT should not have too much problems paying its short term obligations.
ITT's Quick ratio of 1.05 is on the low side compared to the rest of the industry. ITT is outperformed by 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.
ITT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.09% yearly.
The Revenue has grown by 8.01% 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 4.99% yearly.
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
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.
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
With a Price/Earnings ratio of 28.93, ITT can be considered very expensive at the moment.
ITT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.15, ITT is valued at the same level.
A Price/Forward Earnings ratio of 24.30 indicates a rather expensive valuation of ITT.
The rest of the industry has a similar Price/Forward Earnings ratio as ITT.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, ITT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 24.3 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 26.29 | ||
| EV/EBITDA | 17.44 |
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.
A more expensive valuation may be justified as ITT's earnings are expected to grow with 12.30% in the coming years.
PEG (NY)2.09
PEG (5Y)3.18
EPS Next 2Y13.66%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, ITT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.97, ITT has a dividend in line with its industry peers.
With a Dividend Yield of 0.78, ITT pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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 22.66% of its income as dividend. This is a sustainable payout ratio.
The dividend of ITT is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.66%
EPS Next 2Y13.66%
EPS Next 3Y12.3%
184.3
+0.78 (+0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change-1.19%
Ins Owners0.56%
Ins Owner Change-5.15%
Market Cap14.38B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target211.28 (14.64%)
Short Float %1.53%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)8.84%
PT rev (3m)12.69%
EPS NQ rev (1m)1.93%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)1.53%
EPS NY rev (3m)1.66%
Revenue NQ rev (1m)0.5%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 24.3 | ||
| P/S | 3.77 | ||
| P/FCF | 26.29 | ||
| P/OCF | 21.66 | ||
| P/B | 5.39 | ||
| P/tB | 19.94 | ||
| EV/EBITDA | 17.44 |
EPS(TTM)6.37
EY3.46%
EPS(NY)7.58
Fwd EY4.11%
FCF(TTM)7.01
FCFY3.8%
OCF(TTM)8.51
OCFY4.62%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)2.09
PEG (5Y)3.18
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 | 5.78 |
F-Score6
WACC9.37%
ROIC/WACC1.44
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 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 1Y9.79%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
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 7 / 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 9 / 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%.