ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
188.19 USD
+2.64 (+1.42%)
188.19 USD
0 (0%)
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 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 quite expensive at the moment. 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.
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 has a Return On Assets of 9.55%. This is in the better half of the industry: ITT outperforms 77.69% of its industry peers.
Looking at the Return On Equity, with a value of 18.12%, ITT belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
ITT has a better Return On Invested Capital (13.48%) than 80.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITT is above the industry average of 10.24%.
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 | 18.12% | ||
| 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
Looking at the Profit Margin, with a value of 12.67%, ITT belongs to the top of the industry, outperforming 83.85% of the companies in the same industry.
ITT's Profit Margin has improved in the last couple of years.
ITT has a better Operating Margin (17.94%) than 83.85% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
With a decent Gross Margin value of 35.00%, ITT is doing good in the industry, outperforming 60.77% of the companies in the same industry.
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 | 17.94% | ||
| PM (TTM) | 12.67% | ||
| GM | 35% |
OM growth 3Y3.54%
OM growth 5Y5.05%
PM growth 3Y7.68%
PM growth 5Y4.55%
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.
The number of shares outstanding for ITT remains at a similar level compared to 1 year ago.
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
ITT has an Altman-Z score of 5.80. This indicates that ITT is financially healthy and has little risk of bankruptcy at the moment.
ITT has a Altman-Z score of 5.80. This is amongst the best in the industry. ITT outperforms 83.08% 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.
ITT's Debt to FCF ratio of 1.82 is fine compared to the rest of the industry. ITT outperforms 79.23% of its industry peers.
A Debt/Equity ratio of 0.37 indicates that ITT is not too dependend on debt financing.
The Debt to Equity ratio of ITT (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 5.8 |
ROIC/WACC1.41
WACC9.55%
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.
The Quick ratio of ITT (1.05) is worse than 60.00% 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.
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 8.01% in the last year.
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.
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.
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 29.54 indicates a quite expensive valuation of ITT.
ITT's Price/Earnings is on the same level as the industry average.
ITT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
The Price/Forward Earnings ratio is 24.82, which indicates a rather expensive current valuation of ITT.
ITT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ITT to the average of the S&P500 Index (32.68), we can say ITT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 24.82 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ITT.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.84 | ||
| EV/EBITDA | 17.55 |
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.
ITT's earnings are expected to grow with 12.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)3.25
EPS Next 2Y13.66%
EPS Next 3Y12.3%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, ITT is not a good candidate for dividend investing.
ITT's Dividend Yield is comparable with the industry average which is at 1.83.
With a Dividend Yield of 0.74, ITT pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of ITT grows each year by 16.68%, which is quite nice.
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)16.68%
Div Incr Years20
Div Non Decr Years20
5.3 Sustainability
ITT pays out 22.77% 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.
DP22.77%
EPS Next 2Y13.66%
EPS Next 3Y12.3%
188.19
+2.64 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners96.3%
Inst Owner Change-0.66%
Ins Owners0.56%
Ins Owner Change-3.99%
Market Cap14.68B
Revenue(TTM)3.81B
Net Income(TTM)483.00M
Analysts80
Price Target197.51 (4.95%)
Short Float %1.47%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend1.28
Dividend Growth(5Y)16.68%
DP22.77%
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)3.1%
PT rev (3m)12.64%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)2.66%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.44%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 24.82 | ||
| P/S | 3.85 | ||
| P/FCF | 26.84 | ||
| P/OCF | 22.11 | ||
| P/B | 5.51 | ||
| P/tB | 20.36 | ||
| EV/EBITDA | 17.55 |
EPS(TTM)6.37
EY3.38%
EPS(NY)7.58
Fwd EY4.03%
FCF(TTM)7.01
FCFY3.73%
OCF(TTM)8.51
OCFY4.52%
SpS48.89
BVpS34.17
TBVpS9.24
PEG (NY)2.13
PEG (5Y)3.25
Graham Number69.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.55% | ||
| ROE | 18.12% | ||
| ROCE | 18.72% | ||
| ROIC | 13.48% | ||
| ROICexc | 15.44% | ||
| ROICexgc | 34.09% | ||
| 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)15.71%
ROICexc(5y)14.77%
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-1.82%
ROICexc growth 5Y5.78%
OM growth 3Y3.54%
OM growth 5Y5.05%
PM growth 3Y7.68%
PM growth 5Y4.55%
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 | 81.25% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 15.91 | ||
| Cash Conversion | 80.16% | ||
| Profit Quality | 113.25% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.8 |
F-Score6
WACC9.55%
ROIC/WACC1.41
Cap/Depr(3y)95.44%
Cap/Depr(5y)84.25%
Cap/Sales(3y)3.39%
Cap/Sales(5y)3.19%
Profit Quality(3y)78.85%
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 1Y9.82%
EBIT growth 3Y13.38%
EBIT growth 5Y10.29%
EBIT Next Year30.72%
EBIT Next 3Y14.83%
EBIT Next 5Y13.11%
FCF growth 1Y26.8%
FCF growth 3YN/A
FCF growth 5Y10.39%
OCF growth 1Y25.26%
OCF growth 3YN/A
OCF growth 5Y9.4%
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 22.77%.