ITT INC (ITT) Stock Fundamental Analysis
USA - NYSE:ITT - US45073V1089 - Common Stock
180.07 USD
+2.58 (+1.45%)
180.07 USD
0 (0%)
ITT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. ITT scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, ITT is valued expensive at the moment.
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.
ITT had positive earnings in each of the past 5 years.
Of the past 5 years ITT 4 years had a positive operating cash flow.
1.2 Ratios
ITT has a better Return On Assets (10.32%) than 81.25% of its industry peers.
The Return On Equity of ITT (20.25%) is better than 84.38% of its industry peers.
ITT has a Return On Invested Capital of 13.13%. This is amongst the best in the industry. ITT outperforms 80.47% 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 10.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 20.25% | ||
| ROIC | 13.13% |
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 13.99%, ITT belongs to the top of the industry, outperforming 85.16% of the companies in the same industry.
In the last couple of years the Profit Margin of ITT has grown nicely.
The Operating Margin of ITT (17.87%) is better than 84.38% of its industry peers.
In the last couple of years the Operating Margin of ITT has grown nicely.
Looking at the Gross Margin, with a value of 34.96%, ITT is in the better half of the industry, outperforming 60.94% 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 | 17.87% | ||
| PM (TTM) | 13.99% | ||
| GM | 34.96% |
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.
Compared to 1 year ago, ITT has a worse debt to assets ratio.
2.2 Solvency
ITT has an Altman-Z score of 5.48. 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 5.48, ITT belongs to the top of the industry, outperforming 80.47% of the companies in the same industry.
ITT has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as ITT would need 2.13 years to pay back of all of its debts.
ITT's Debt to FCF ratio of 2.13 is fine compared to the rest of the industry. ITT outperforms 75.00% of its industry peers.
ITT has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.42, ITT perfoms like the industry average, outperforming 55.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.32
WACC9.92%
2.3 Liquidity
A Current Ratio of 1.45 indicates that ITT should not have too much problems paying its short term obligations.
ITT's Current ratio of 1.45 is on the low side compared to the rest of the industry. ITT is outperformed by 75.78% of its industry peers.
A Quick Ratio of 0.99 indicates that ITT may have some problems paying its short term obligations.
ITT's Quick ratio of 0.99 is on the low side compared to the rest of the industry. ITT is outperformed by 65.63% 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 | 1.45 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.65% 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 been growing slightly by 6.69% in the past year.
The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)7.65%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%10.07%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
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 11.84% yearly.
The Revenue is expected to grow by 5.44% on average over the next years.
EPS Next Y12%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
EPS Next 5Y11.84%
Revenue Next Year5.89%
Revenue Next 2Y5.6%
Revenue Next 3Y5.13%
Revenue Next 5Y5.44%
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
The Price/Earnings ratio is 29.76, which means the current valuation is very expensive for ITT.
Compared to the rest of the industry, the Price/Earnings ratio of ITT is on the same level as its industry peers.
ITT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.27.
The Price/Forward Earnings ratio is 24.29, 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.
The average S&P500 Price/Forward Earnings ratio is at 22.77. ITT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 24.29 |
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 | 27.96 | ||
| EV/EBITDA | 17.39 |
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)2.48
PEG (5Y)3.28
EPS Next 2Y12.39%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, ITT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.74, ITT has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ITT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 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
ITT pays out 20.92% 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.
DP20.92%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
180.07
+2.58 (+1.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.45%
Inst Owner Change-2.09%
Ins Owners0.64%
Ins Owner Change-3.99%
Market Cap14.05B
Analysts80
Price Target191.57 (6.39%)
Short Float %1.62%
Short Ratio3.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.28
Dividend Growth(5Y)16.67%
DP20.92%
Div Incr Years20
Div Non Decr Years20
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.32%
Min EPS beat(2)-0.08%
Max EPS beat(2)0.72%
EPS beat(4)3
Avg EPS beat(4)0.54%
Min EPS beat(4)-0.08%
Max EPS beat(4)0.8%
EPS beat(8)6
Avg EPS beat(8)1.6%
EPS beat(12)10
Avg EPS beat(12)2.76%
EPS beat(16)12
Avg EPS beat(16)2.42%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)1.43%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.43%
Revenue beat(8)4
Avg Revenue beat(8)0.03%
Revenue beat(12)7
Avg Revenue beat(12)0.42%
Revenue beat(16)10
Avg Revenue beat(16)0.43%
PT rev (1m)2.18%
PT rev (3m)9.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.41%
EPS NY rev (1m)1.32%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.31%
Revenue NQ rev (3m)2.35%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.76 | ||
| Fwd PE | 24.29 | ||
| P/S | 3.8 | ||
| P/FCF | 27.96 | ||
| P/OCF | 22.34 | ||
| P/B | 5.49 | ||
| P/tB | 23.58 | ||
| EV/EBITDA | 17.39 |
EPS(TTM)6.05
EY3.36%
EPS(NY)7.41
Fwd EY4.12%
FCF(TTM)6.44
FCFY3.58%
OCF(TTM)8.06
OCFY4.48%
SpS47.43
BVpS32.78
TBVpS7.64
PEG (NY)2.48
PEG (5Y)3.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.32% | ||
| ROE | 20.25% | ||
| ROCE | 18.4% | ||
| ROIC | 13.13% | ||
| ROICexc | 14.85% | ||
| ROICexgc | 32.93% | ||
| OM | 17.87% | ||
| PM (TTM) | 13.99% | ||
| GM | 34.96% | ||
| FCFM | 13.58% |
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%
ROICexcg growth 3Y4.62%
ROICexcg 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 Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 87.64% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 16.29 | ||
| Cash Conversion | 78.06% | ||
| Profit Quality | 97.04% | ||
| Current Ratio | 1.45 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 5.48 |
F-Score6
WACC9.92%
ROIC/WACC1.32
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)7.65%
EPS 3Y13.17%
EPS 5Y9.09%
EPS Q2Q%10.07%
EPS Next Y12%
EPS Next 2Y12.39%
EPS Next 3Y10.74%
EPS Next 5Y11.84%
Revenue 1Y (TTM)6.69%
Revenue growth 3Y9.5%
Revenue growth 5Y4.99%
Sales Q2Q%7.34%
Revenue Next Year5.89%
Revenue Next 2Y5.6%
Revenue Next 3Y5.13%
Revenue Next 5Y5.44%
EBIT growth 1Y9.27%
EBIT growth 3Y13.37%
EBIT growth 5Y10.29%
EBIT Next Year30.02%
EBIT Next 3Y14.17%
EBIT Next 5Y12.02%
FCF growth 1Y57.74%
FCF growth 3YN/A
FCF growth 5Y10.4%
OCF growth 1Y49.24%
OCF growth 3YN/A
OCF growth 5Y9.41%