ITT INC (ITT) Stock Fundamental Analysis
NYSE:ITT - New York Stock Exchange, Inc. - US45073V1089 - Common Stock - Currency: USD
Taking everything into account, ITT scores 6 out of 10 in our fundamental rating. ITT was compared to 128 industry peers in the Machinery industry. ITT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
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
The Return On Assets of ITT (11.00%) is better than 81.60% of its industry peers.
ITT has a Return On Equity of 18.76%. This is amongst the best in the industry. ITT outperforms 80.80% of its industry peers.
With an excellent Return On Invested Capital value of 15.08%, ITT belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.
ITT had an Average Return On Invested Capital over the past 3 years of 13.79%. This is above the industry average of 11.00%.
The 3 year average ROIC (13.79%) for ITT is below the current ROIC(15.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 18.76% | ||
| ROIC | 15.08% |
ROA(3y)10.38%
ROA(5y)8.34%
ROE(3y)17.11%
ROE(5y)13.79%
ROIC(3y)13.79%
ROIC(5y)12.37%
1.3 Margins
ITT has a better Profit Margin (14.28%) than 86.40% of its industry peers.
In the last couple of years the Profit Margin of ITT has grown nicely.
ITT has a better Operating Margin (17.49%) than 81.60% of its industry peers.
ITT's Operating Margin has improved in the last couple of years.
ITT has a Gross Margin (34.35%) which is in line with its industry peers.
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 | 17.49% | ||
| PM (TTM) | 14.28% | ||
| GM | 34.35% |
OM growth 3Y2.93%
OM growth 5Y4.68%
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.
ITT has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 5.98 indicates that ITT is not in any danger for bankruptcy at the moment.
ITT has a better Altman-Z score (5.98) than 81.60% of its industry peers.
ITT has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.51, ITT belongs to the best of the industry, outperforming 83.20% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that ITT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.08, ITT is doing good in the industry, outperforming 77.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.51 | ||
| Altman-Z | 5.98 |
ROIC/WACC1.42
WACC10.63%
2.3 Liquidity
A Current Ratio of 1.40 indicates that ITT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, ITT is not doing good in the industry: 78.40% of the companies in the same industry are doing better.
ITT has a Quick Ratio of 1.40. This is a bad value and indicates that ITT is not financially healthy enough and could expect problems in meeting its short term obligations.
ITT's Quick ratio of 0.96 is on the low side compared to the rest of the industry. ITT is outperformed by 68.80% 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 | 1.4 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.67% 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 10.59% 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)12.67%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%11.94%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.05%
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 11.02% on average per year.
ITT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y10.79%
EPS Next 2Y10.71%
EPS Next 3Y10.45%
EPS Next 5Y11.02%
Revenue Next Year6.79%
Revenue Next 2Y5.83%
Revenue Next 3Y6.12%
Revenue Next 5Y5.65%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.18 indicates a rather expensive valuation of ITT.
ITT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ITT to the average of the S&P500 Index (29.63), we can say ITT is valued inline with the index average.
ITT is valuated rather expensively with a Price/Forward Earnings ratio of 21.82.
ITT's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 21.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITT is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as ITT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.36 | ||
| EV/EBITDA | 15.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ITT does not grow enough to justify the current Price/Earnings ratio.
ITT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)2.66
EPS Next 2Y10.71%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
ITT has a yearly dividend return of 0.95%, which is pretty low.
ITT's Dividend Yield is comparable with the industry average which is at 1.67.
Compared to an average S&P500 Dividend Yield of 2.29, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
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 20.20% 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.
DP20.2%
EPS Next 2Y10.71%
EPS Next 3Y10.45%
141.93
-5.96 (-4.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.57%
Inst Owner Change3.41%
Ins Owners0.59%
Ins Owner Change3.75%
Market Cap11.55B
Analysts81.18
Price Target176.57 (24.41%)
Short Float %1.3%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP20.2%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.7%
Max EPS beat(2)0.8%
EPS beat(4)4
Avg EPS beat(4)1.6%
Min EPS beat(4)0.7%
Max EPS beat(4)3.66%
EPS beat(8)7
Avg EPS beat(8)3.5%
EPS beat(12)10
Avg EPS beat(12)2.7%
EPS beat(16)13
Avg EPS beat(16)3.88%
Revenue beat(2)0
Avg Revenue beat(2)-0.92%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.91%
Revenue beat(4)1
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)2.08%
Revenue beat(8)5
Avg Revenue beat(8)0.57%
Revenue beat(12)8
Avg Revenue beat(12)0.79%
Revenue beat(16)11
Avg Revenue beat(16)0.97%
PT rev (1m)0.72%
PT rev (3m)5.84%
EPS NQ rev (1m)-5.87%
EPS NQ rev (3m)-10.45%
EPS NY rev (1m)-1.83%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)-5.33%
Revenue NQ rev (3m)-5.05%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 21.82 | ||
| P/S | 3.18 | ||
| P/FCF | 26.36 | ||
| P/OCF | 20.55 | ||
| P/B | 4.18 | ||
| P/tB | 13.15 | ||
| EV/EBITDA | 15.88 |
EPS(TTM)5.87
EY4.14%
EPS(NY)6.5
Fwd EY4.58%
FCF(TTM)5.38
FCFY3.79%
OCF(TTM)6.91
OCFY4.87%
SpS44.6
BVpS33.94
TBVpS10.79
PEG (NY)2.24
PEG (5Y)2.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11% | ||
| ROE | 18.76% | ||
| ROCE | 18.8% | ||
| ROIC | 15.08% | ||
| ROICexc | 17.33% | ||
| ROICexgc | 48.31% | ||
| OM | 17.49% | ||
| PM (TTM) | 14.28% | ||
| GM | 34.35% | ||
| FCFM | 12.07% |
ROA(3y)10.38%
ROA(5y)8.34%
ROE(3y)17.11%
ROE(5y)13.79%
ROIC(3y)13.79%
ROIC(5y)12.37%
ROICexc(3y)16.35%
ROICexc(5y)15.16%
ROICexgc(3y)34.93%
ROICexgc(5y)30.61%
ROCE(3y)18.45%
ROCE(5y)16.46%
ROICexcg growth 3Y16.31%
ROICexcg growth 5Y20%
ROICexc growth 3Y2.11%
ROICexc growth 5Y8.3%
OM growth 3Y2.93%
OM growth 5Y4.68%
PM growth 3Y7.7%
PM growth 5Y4.57%
GM growth 3Y1.81%
GM growth 5Y1.45%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.51 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 90.24% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 19.01 | ||
| Cash Conversion | 72.79% | ||
| Profit Quality | 84.55% | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 5.98 |
F-Score6
WACC10.63%
ROIC/WACC1.42
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)12.67%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%11.94%
EPS Next Y10.79%
EPS Next 2Y10.71%
EPS Next 3Y10.45%
EPS Next 5Y11.02%
Revenue 1Y (TTM)10.59%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%12.05%
Revenue Next Year6.79%
Revenue Next 2Y5.83%
Revenue Next 3Y6.12%
Revenue Next 5Y5.65%
EBIT growth 1Y13.88%
EBIT growth 3Y12.72%
EBIT growth 5Y9.91%
EBIT Next Year33.55%
EBIT Next 3Y17.21%
EBIT Next 5Y14.43%
FCF growth 1Y1.88%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y4.54%
OCF growth 3YN/A
OCF growth 5Y9.41%