ITT INC (ITT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ITT - US45073V1089 - Common Stock
173.64 USD
+1.56 (+0.91%)
173.64 USD
0 (0%)
ITT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 130 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. This makes ITT very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ITT was profitable.
In the past year ITT had a positive cash flow from operations.
ITT had positive earnings in each of the past 5 years.
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's Return On Equity of 18.14% is amongst the best of the industry. ITT outperforms 80.77% of its industry peers.
ITT has a better Return On Invested Capital (13.48%) than 81.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ITT is above the industry average of 10.32%.
The 3 year average ROIC (13.31%) for ITT is below the current ROIC(13.48%), indicating increased profibility in the last year.
| 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 Profit Margin of 12.67%. This is amongst the best in the industry. ITT outperforms 80.77% of its industry peers.
ITT's Profit Margin has improved in the last couple of years.
ITT has a Operating Margin of 17.94%. This is amongst the best in the industry. ITT outperforms 84.62% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
ITT has a better Gross Margin (35.00%) than 63.08% 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
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.
ITT has a worse debt/assets ratio than last year.
2.2 Solvency
ITT has an Altman-Z score of 5.54. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ITT (5.54) is better than 81.54% 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.
With a decent Debt to FCF ratio value of 1.82, ITT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
ITT has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.37, ITT is in line with its industry, outperforming 56.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.54 |
ROIC/WACC1.4
WACC9.65%
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: 73.08% 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.
Looking at the Quick ratio, with a value of 1.05, ITT is doing worse than 62.31% of the companies in the same industry.
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.
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.
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
Based on estimates for the next years, ITT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.04% on average per year.
The Revenue is expected to grow by 6.58% on average over the next years.
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
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
A Price/Earnings ratio of 27.26 indicates a quite expensive 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.
ITT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.26, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.85, which indicates a rather expensive current valuation of ITT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITT is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.68, ITT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 22.85 |
4.2 Price Multiples
ITT's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.77 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ITT may justify a higher PE ratio.
A more expensive valuation may be justified as ITT's earnings are expected to grow with 12.65% in the coming years.
PEG (NY)1.89
PEG (5Y)3
EPS Next 2Y13.79%
EPS Next 3Y12.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, ITT is not a good candidate for dividend investing.
ITT's Dividend Yield is comparable with the industry average which is at 1.00.
With a Dividend Yield of 0.80, ITT pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
On average, the dividend of ITT grows each year by 16.67%, which is quite nice.
ITT has been paying a dividend for at least 10 years, so it has 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)16.67%
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%
173.64
+1.56 (+0.91%)
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 Cap13.54B
Revenue(TTM)3.81B
Net Income(TTM)483.30M
Analysts80
Price Target211.28 (21.68%)
Short Float %1.86%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)10.29%
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)0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.26 | ||
| Fwd PE | 22.85 | ||
| P/S | 3.55 | ||
| P/FCF | 24.77 | ||
| P/OCF | 20.41 | ||
| P/B | 5.08 | ||
| P/tB | 18.78 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)6.37
EY3.67%
EPS(NY)7.6
Fwd EY4.38%
FCF(TTM)7.01
FCFY4.04%
OCF(TTM)8.51
OCFY4.9%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)1.89
PEG (5Y)3
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 | 5.54 |
F-Score6
WACC9.65%
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%.