ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
183.15 USD
-1.08 (-0.59%)
183.15 USD
0 (0%)
Overall ITT gets a fundamental rating of 6 out of 10. We evaluated ITT against 132 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. ITT is quite expensive at the moment. It does show a decent growth rate. This makes ITT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year ITT was profitable.
- ITT had a positive operating cash flow in the past year.
- 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's Return On Assets of 9.55% is fine compared to the rest of the industry. ITT outperforms 78.79% of its industry peers.
- Looking at the Return On Equity, with a value of 18.14%, ITT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 13.48%, ITT belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.24%.
- 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's Profit Margin of 12.67% is amongst the best of the industry. ITT outperforms 81.06% of its industry peers.
- ITT's Profit Margin has improved in the last couple of years.
- The Operating Margin of ITT (17.94%) is better than 84.09% of its industry peers.
- ITT's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 35.00%, ITT is doing good in the industry, outperforming 63.64% 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.
- Compared to 1 year ago, ITT has less shares outstanding
- ITT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.75 indicates that ITT is not in any danger for bankruptcy at the moment.
- ITT has a Altman-Z score of 5.75. This is amongst the best in the industry. ITT outperforms 81.06% of its industry peers.
- ITT has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.82, ITT belongs to the top of the industry, outperforming 80.30% of the companies in the same industry.
- A Debt/Equity ratio of 0.37 indicates that ITT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.37, ITT is in line with its industry, outperforming 57.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.75 |
ROIC/WACC1.38
WACC9.8%
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: 71.97% 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.
- The Quick ratio of ITT (1.05) is worse than 62.12% 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 | 1.52 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
- ITT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.56%, which is quite good.
- 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.
- Measured over the past years, ITT shows a small growth in Revenue. The Revenue has been growing by 4.99% on average per year.
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 12.02% yearly.
- Based on estimates for the next years, ITT will show a small growth in Revenue. The Revenue will grow by 6.55% on average per year.
EPS Next Y14.36%
EPS Next 2Y12.42%
EPS Next 3Y11.53%
EPS Next 5Y12.02%
Revenue Next Year6.98%
Revenue Next 2Y7.54%
Revenue Next 3Y6.46%
Revenue Next 5Y6.55%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- The Price/Earnings ratio is 28.75, which means the current valuation is very expensive for ITT.
- The rest of the industry has a similar Price/Earnings ratio as ITT.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ITT is valued at the same level.
- ITT is valuated rather expensively with a Price/Forward Earnings ratio of 24.69.
- ITT's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.75 | ||
| Fwd PE | 24.69 |
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 | 26.13 | ||
| EV/EBITDA | 17.33 |
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.
PEG (NY)2
PEG (5Y)3.16
EPS Next 2Y12.42%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.76%, ITT is not a good candidate for dividend investing.
- ITT's Dividend Yield is a higher than the industry average which is at 1.01.
- With a Dividend Yield of 0.76, ITT pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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.
- ITT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP22.66%
EPS Next 2Y12.42%
EPS Next 3Y11.53%
ITT INC / ITT FAQ
Can you provide the ChartMill fundamental rating for ITT INC?
ChartMill assigns a fundamental rating of 6 / 10 to ITT.
Can you provide the valuation status for ITT INC?
ChartMill assigns a valuation rating of 3 / 10 to ITT INC (ITT). This can be considered as Overvalued.
What is the profitability of ITT stock?
ITT INC (ITT) has a profitability rating of 8 / 10.
How financially healthy is ITT INC?
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%.