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CIT Group

NYSE:CIT
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CIT
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

CIT Group Inc. operates as the holding company for CIT Bank, N.A. The last earnings update was 60 days ago. More info.


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CIT Share Price and Events
7 Day Returns
0.8%
NYSE:CIT
0.7%
US Banks
-0.3%
US Market
1 Year Returns
-4.9%
NYSE:CIT
-4.7%
US Banks
7%
US Market
CIT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CIT Group (CIT) 0.8% 9.6% 16% -4.9% 49.6% 9.2%
US Banks 0.7% 5.2% 3.1% -4.7% 43% 50.2%
US Market -0.3% 2% 8.5% 7% 37.7% 46.8%
1 Year Return vs Industry and Market
  • CIT underperformed the Market in United States of America which returned 7% over the past year.
Price Volatility
CIT
Industry
5yr Volatility vs Market

CIT Value

 Is CIT Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CIT Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CIT Group.

NYSE:CIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $64.14 * 8%
$5.11
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $64.14
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.63
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.631 (1 + (1- 21%) (197.33%))
1.412
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.412 * 5.96%)
11.14%

Discounted Cash Flow Calculation for NYSE:CIT using Excess Returns Model Model

The calculations below outline how an intrinsic value for CIT Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:CIT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8% – 11.14%) * $64.14)
$-2.04
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-2.04 / (11.14% - 2.73%)
$-24.25
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $64.14 + $-24.25
$39.89
NYSE:CIT Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.89
Current discount Discount to share price of $50.53
= -1 x ($50.53 - $39.89) / $39.89
-26.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of CIT Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CIT Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CIT Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $3.85
NYSE:CIT Share Price ** NYSE (2019-04-18) in USD $50.53
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 12.95x
United States of America Market PE Ratio Median Figure of 3,081 Publicly-Listed Companies 18.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CIT Group.

NYSE:CIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CIT Share Price ÷ EPS (both in USD)

= 50.53 ÷ 3.85

13.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CIT Group is overvalued based on earnings compared to the US Banks industry average.
  • CIT Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does CIT Group's expected growth come at a high price?
Raw Data
NYSE:CIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.12x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
2.6%per year
United States of America Banks Industry PEG Ratio Median Figure of 262 Publicly-Listed Banks Companies 1.28x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:CIT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.12x ÷ 2.6%

5.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CIT Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on CIT Group's assets?
Raw Data
NYSE:CIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $55.70
NYSE:CIT Share Price * NYSE (2019-04-18) in USD $50.53
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.23x
United States of America Market PB Ratio Median Figure of 5,184 Publicly-Listed Companies 1.91x
NYSE:CIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CIT Share Price ÷ Book Value per Share (both in USD)

= 50.53 ÷ 55.70

0.91x

* Primary Listing of CIT Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CIT Group is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess CIT Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. CIT Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CIT Future Performance

 How is CIT Group expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CIT Group expected to grow at an attractive rate?
  • CIT Group's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • CIT Group's earnings growth is positive but not above the United States of America market average.
  • CIT Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CIT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CIT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 2.6%
NYSE:CIT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -6.6%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.2%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CIT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,973 485 2
2020-12-31 1,888 476 6
2019-12-31 1,850 452 6
NYSE:CIT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,287 983 453
2018-09-30 2,408 806 278
2018-06-30 2,399 785 372
2018-03-31 2,367 341 275
2017-12-31 2,375 534 250
2017-09-30 2,130 1,366 -84
2017-06-30 2,151 1,640 -212
2017-03-31 2,188 2,295 -165
2016-12-31 2,157 2,406 -183
2016-09-30 1,649 1,813 52
2016-06-30 1,775 1,759 654
2016-03-31 1,744 1,445 681

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CIT Group's earnings are expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • CIT Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from CIT Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 6.27 6.39 6.09 3.00
2020-12-31 5.45 5.76 5.20 10.00
2019-12-31 4.72 4.91 4.40 10.00
NYSE:CIT Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 3.85
2018-09-30 2.24
2018-06-30 2.87
2018-03-31 1.91
2017-12-31 1.54
2017-09-30 -0.46
2017-06-30 -1.08
2017-03-31 -0.82
2016-12-31 -0.90
2016-09-30 0.26
2016-06-30 3.29
2016-03-31 3.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CIT Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CIT Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CIT Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CIT Past Performance

  How has CIT Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CIT Group's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CIT Group's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • CIT Group's 1-year earnings growth exceeds its 5-year average (81.6% vs -30.6%)
  • CIT Group's earnings growth has exceeded the US Banks industry average in the past year (81.6% vs 43.5%).
Earnings and Revenue History
CIT Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CIT Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,287.10 453.20 662.30
2018-09-30 2,408.10 278.40 664.10
2018-06-30 2,398.80 371.80 660.40
2018-03-31 2,367.00 275.10 650.30
2017-12-31 2,374.90 249.60 641.40
2017-09-30 2,130.10 -83.60 663.50
2017-06-30 2,151.10 -212.20 641.60
2017-03-31 2,188.10 -165.40 606.20
2016-12-31 2,156.80 -182.60 582.70
2016-09-30 1,649.40 51.50 250.10
2016-06-30 1,775.20 654.10 344.40
2016-03-31 1,744.20 681.40 440.20
2015-12-31 1,778.80 724.10 536.80
2015-09-30 2,594.60 1,167.80 930.10
2015-06-30 2,493.20 986.40 918.10
2015-03-31 2,551.80 1,066.30 918.80
2014-12-31 1,630.80 675.70 493.20
2014-09-30 2,539.60 948.50 890.80
2014-06-30 2,529.10 626.00 859.70
2014-03-31 2,459.90 606.40 825.30
2013-12-31 2,532.10 644.40 800.40
2013-09-30 2,521.00 728.20 744.10
2013-06-30 2,015.30 236.10 709.50
2013-03-31 1,750.70 -12.40 671.30
2012-12-31 1,307.50 -535.80 750.80
2012-09-30 933.80 -767.40 625.30
2012-06-30 1,345.90 -501.00 604.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CIT Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CIT Group used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if CIT Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess CIT Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CIT Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CIT Health

 How is CIT Group's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of CIT Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CIT Group Company Filings, last reported 3 months ago.

NYSE:CIT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,946.60 9,872.90 2,212.20
2018-09-30 6,320.30 10,475.70 1,509.60
2018-06-30 6,525.70 10,394.50 3,612.10
2018-03-31 7,126.80 12,090.60 4,273.40
2017-12-31 7,320.00 10,530.50 1,789.10
2017-09-30 7,451.30 10,309.90 3,209.10
2017-06-30 7,351.50 10,141.90 5,208.50
2017-03-31 10,165.50 16,336.40 6,005.20
2016-12-31 10,003.10 16,296.50 6,435.20
2016-09-30 11,237.50 17,933.00 7,005.70
2016-06-30 11,124.60 18,879.90 7,433.70
2016-03-31 11,126.30 19,570.10 7,415.90
2015-12-31 10,945.20 17,796.90 7,460.40
2015-09-30 10,799.20 20,929.80 7,690.40
2015-06-30 8,807.60 17,903.00 5,520.10
2015-03-31 8,759.10 18,231.10 6,136.00
2014-12-31 9,063.50 20,140.70 6,973.50
2014-09-30 9,004.00 20,416.60 5,905.70
2014-06-30 8,629.30 18,960.40 5,625.00
2014-03-31 8,801.80 24,000.30 4,358.50
2013-12-31 8,850.00 19,931.60 5,131.40
2013-09-30 8,853.70 22,746.10 4,887.10
2013-06-30 8,685.50 22,250.80 4,800.80
2013-03-31 8,502.10 22,866.80 4,358.90
2012-12-31 8,339.50 23,300.20 5,644.60
2012-09-30 8,090.90 24,213.30 5,401.00
2012-06-30 8,385.00 24,759.10 5,135.70
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • CIT Group has an acceptable proportion of non-loan assets held.
  • CIT Group's liabilities are made up of primarily low risk sources of funding.
  • Loans at CIT Group are broadly funded by customer deposits.
  • CIT Group's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • CIT Group has a sufficient allowance for bad loans.
  • CIT Group has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess CIT Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CIT Group has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CIT Dividends

 What is CIT Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.77%
Current annual income from CIT Group dividends. Estimated to be 2.78% next year.
If you bought $2,000 of CIT Group shares you are expected to receive $55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CIT Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.39%).
  • CIT Group's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CIT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 472 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CIT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.57 3.00
2020-12-31 1.45 7.00
2019-12-31 1.30 7.00
NYSE:CIT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-17 1.400 2.759
2019-02-21 1.400 2.827
2019-01-29 1.400 2.884
2019-01-23 1.000 2.259
2018-10-16 1.000 2.300
2018-07-17 1.000 1.889
2018-04-16 0.640 1.227
2018-01-22 0.640 1.217
2017-10-16 0.640 1.307
2017-06-28 0.600 1.268
2017-04-18 0.600 1.295
2017-01-18 0.600 1.415
2016-10-18 0.600 1.489
2016-07-19 0.600 1.689
2016-04-19 0.600 1.835
2016-01-20 0.600 1.962
2015-10-21 0.600 1.475
2015-07-21 0.600 1.383
2015-05-07 0.600 1.280
2015-04-28 0.600 1.328
2015-01-21 0.600 1.312
2014-10-15 0.600 1.266
2014-07-15 0.600 1.270
2014-04-17 0.400 0.899
2014-01-21 0.400 0.832
2013-10-21 0.400 0.801
2010-11-09 0.000 0.000
2010-10-26 0.000 0.000
2010-08-09 0.000 0.000
2010-07-27 0.000 0.000
2010-05-10 0.000 0.000
2010-04-27 0.000 0.000
2010-02-10 0.000 0.000
2009-12-10 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, CIT Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but CIT Group only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of CIT Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
X
Income/ dividend checks
We assess CIT Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CIT Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CIT Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CIT Management

 What is the CEO of CIT Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ellen Alemany
COMPENSATION $8,961,198
AGE 62
TENURE AS CEO 3 years
CEO Bio

Ms. Ellen R. Alemany has been the Chief Executive Officer of CIT Group Inc. since April 1, 2016 and has been its Chairwoman since May 10, 2016. Ms. Alemany also has been the Chief Executive Officer of CIT Bank, National Association (the “Bank”) since December 8, 2015 and its Chairwoman since April 1, 2016. She also served as President of the bank. She serves as an Advisor of Mission Operators Group. She has more than 35 years experience in global banking. She served as the Chief Executive Officer of RBS Citizens, N.A., from March 2008 to September 2013. She served as the Chief Executive Officer of Citizens Financial Group, Inc. (alternate name, Rbs Citizens Financial Group, Inc.) from March 2008 to October 1, 2013. Ms. Alemany served as the Chief Executive Officer and Chairman of RBS Americas, an operating division of The Royal Bank of Scotland Group plc from March 2007 to October 2013 and served as its Head of Americas until October 2013. She joined RBS Americas in June 2007 from Citigroup. Before joining Citizens Financial Group and RBS Americas, she served a series of Senior and Executive Management positions at Citigroup Inc. from 1987 to 2007. She served as the Chief Executive Officer of Citi Global Transaction Services, a division of Citigroup Corporate and Investment Banking in 2006 and early 2007. She served as Chief Executive Officer of Investment Banking at Citigroup Inc. Ms. Alemany served as President and Chief Executive Officer of CitiCapital since September 2001. She served as the Chief Executive Officer of Citibank International plc, Citibank's pan-European Bank and Country Corporate Officer of the United Kingdom. She served as an Executive Vice President of Commercial Business Group at Citigroup Inc., which includes CitiCapital, the Commercial Markets Group and the Commercial Real Estate Group and was responsible for managing the business relationships within Citibank Texas. She served as the Chief Executive Officer of Citizens Bank, National Association from March 2008 to September 2013. She began her career in Operations at Chase Manhattan before being recruited to Citibank. She served as the Head of Global Transaction Services Business of Citigroup Inc. since January 1, 2007. She joined Citibank in 1987 and in 1988 was appointed Area Head of Citibank's New York Leveraged Capital Group. Since 1991, she served as a Senior Credit Officer of Citibank. Ms. Alemany served a number of positions in the Global Corporate Bank including Customer Group Executive of North American Markets, Global Industry Head of Media and Communications and U.S. Industry Head of Consumer Products. She served as an Executive Vice President of Citibank and the Customer Group Executive for the Global Relationship Bank in Europe since November 1999. She served as Chairman of Citibank International plc and Citibank's pan-European Bank. Ms. Alemany served as a Senior Lender at Chase Manhattan Bank in Operations, Structured Trade and the Media and Electronics Department from 1977 to 1987. She serves as Chairperson of the March of Dimes Foundation's Westchester and Rockland (New York) County Bank Challenge. She served as the Chairman of Citizens Financial Group, Inc. from March 5, 2009 to October 2013. She served as the Chairman of RBS Citizens, N.A. She served as Vice Chairman of CIT Group Inc. from October 19, 2015 to March 31, 2016 and has been its Director since January 21, 2014. She has been a Director of Fidelity National Information Services, Inc. since June 2014. She also served as a Director of Financial Services Roundtable. She serves as Director of CitiCorp. USA, Inc, CitiCorp. North America, Inc, and the Equipment Leasing Association. Ms. Alemany served as a Director of RBS Citizens, N.A. She served as an Independent Director of Automatic Data Processing, Inc. from December 14, 2011 to November 8, 2016. She served as a Director of The Clearing House Interbank Payments Company L.L.C. She served as a Director of Federal Reserve Bank Of Boston Inc. She served as Director of Citizens Financial Group, Inc. and Citizens Bank, National Association. She served as member of the Board of Citibank, N.A. She served as Director of The Depository Trust & Clearing Corporation. From 2008 to 2010, she was the First District Representative on the Federal Advisory Council, directly consulting with and advising the Board of Governors of the Federal Reserve System. An active member of the community, she serves on the board of the Center for Discovery and the March of Dimes New York Division. She is also a Member of The Board of Trustees of the National Constitution Center and a member of the Providence College Business Advisory Council. She is the Treasurer and a member of the Board of Trustees of the Equipment Leasing and Finance Foundation. She is the only woman responsible for one of the top ten commercial banking institutions in the US. In October 2006, she was ranked by U.S. Banker as the fourth-most-powerful woman banker in America. In September 2010, she was listed 13th on U.S. Banker's list of The 25 Most Powerful Women in Banking. In August 2009, Forbes magazine ranked Ms. Alemany 57th on its annual list of the World's 100 Most Powerful Women. Ms. Alemany holds an M.B.A. in Finance from Fordham University in 1980.

CEO Compensation
  • Ellen's compensation has increased by more than 20% in the past year.
  • Ellen's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the CIT Group management team in years:

2.3
Average Tenure
59
Average Age
  • The tenure for the CIT Group management team is about average.
Management Team

Ellen Alemany

TITLE
Chairwoman & CEO
COMPENSATION
$9M
AGE
62
TENURE
3 yrs

John Fawcett

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
59
TENURE
2 yrs

Denise Menelly

TITLE
Executive VP & Head of Technology and Operations
COMPENSATION
$2M
AGE
56
TENURE
2.8 yrs

Jim Hudak

TITLE
President of Commercial Finance
COMPENSATION
$2M
AGE
54
TENURE
3.3 yrs

Steve Solk

TITLE
President of Consumer Banking
COMPENSATION
$2M
AGE
63
TENURE
2.4 yrs

Sidharth Kedia

TITLE
M&A contact

Alla Whitston

TITLE
Chief Technology Officer
TENURE
0.5 yrs

Barbara Callahan

TITLE
Senior VP & Head of Investor Relations

Paul Tufaro

TITLE
Chief Compliance Officer and Executive Vice President
TENURE
2.3 yrs

Jim Hubbard

TITLE
Executive VP
AGE
59
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the CIT Group board of directors in years:

9.3
Average Tenure
65
Average Age
  • The tenure for the CIT Group board of directors is about average.
Board of Directors

Ellen Alemany

TITLE
Chairwoman & CEO
COMPENSATION
$9M
AGE
62
TENURE
2.9 yrs

Chris Broom

TITLE
Chairman of Direct Capital Corporation

Bill Freeman

TITLE
Director
COMPENSATION
$205K
AGE
65
TENURE
15.8 yrs

R. Oates

TITLE
Director
COMPENSATION
$236K
AGE
64
TENURE
9.3 yrs

Jerry Rosenfeld

TITLE
Director
COMPENSATION
$203K
AGE
71
TENURE
9.3 yrs

Al Frank

TITLE
Director
COMPENSATION
$213K
AGE
66
TENURE
3.7 yrs

John Ryan

TITLE
Lead Director
COMPENSATION
$215K
AGE
72
TENURE
10.9 yrs

Mike Carpenter

TITLE
Director
COMPENSATION
$197K
AGE
71
TENURE
2.9 yrs

Laura Unger

TITLE
Director
COMPENSATION
$198K
AGE
57
TENURE
9.3 yrs

Sheila Stamps

TITLE
Director
COMPENSATION
$198K
AGE
60
TENURE
5.2 yrs
Who owns this company?
Recent Insider Trading
  • CIT Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Mar 19 Sell Matthew Galligan Individual 08. Mar 19 08. Mar 19 -997 $48.65 $-48,503
07. Mar 19 Sell Edward Sperling Individual 06. Mar 19 06. Mar 19 -2,224 $50.16 $-111,556
26. Feb 19 Sell Matthew Galligan Individual 25. Feb 19 25. Feb 19 -2,300 $51.68 $-118,857
20. Feb 19 Sell Matthew Galligan Individual 19. Feb 19 19. Feb 19 -5,375 $50.82 $-273,168
18. Jun 18 Sell Edward Sperling Individual 14. Jun 18 14. Jun 18 -1,765 $51.44 $-90,786
11. Jun 18 Sell Sheila Stamps Individual 07. Jun 18 07. Jun 18 -3,350 $52.12 $-174,585
X
Management checks
We assess CIT Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CIT Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CIT News

Simply Wall St News

At US$50.53, Is CIT Group Inc. (NYSE:CIT) Worth Looking At Closely?

As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on CIT Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

If You Had Bought CIT Group (NYSE:CIT) Stock Three Years Ago, You Could Pocket A 61% Gain Today

But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over the last three years, CIT Group failed to grow earnings per share, which fell 0.4% (annualized).

Simply Wall St -

Read This Before Buying CIT Group Inc. (NYSE:CIT) Shares

(NYSE:CIT), you may well want to know whether insiders have been buying or selling. … CIT Group Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of CIT Group shares, than buying.

Simply Wall St -

Do You Know What CIT Group Inc.'s (NYSE:CIT) P/E Ratio Means?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … CIT Group has a price to earnings ratio of 12.79, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is CIT Group Inc. (NYSE:CIT) A Smart Pick For Income Investors?

(NYSE:CIT) has been paying a dividend to shareholders. … Does CIT Group tick all the boxes of a great dividend stock? … 5 checks you should use to assess a dividend stock

Simply Wall St -

What Should We Expect From CIT Group Inc.'s (NYSE:CIT) Earnings Over The Next Year?

Want to participate in a short research study? … Help shape the future of investing tools and receive a $20 prize! … Looking at CIT Group Inc.'s (NYSE:CIT) earnings update on 31 December 2018,

Simply Wall St -

Should You Be Concerned About CIT Group Inc.’s (NYSE:CIT) Risks?

Economic growth impacts the stability of salaries and interest rate level which in turn affects borrowers’ demand for, and ability to repay, their loans. … Risk associate with repayment is measured by the level of bad debt which is an expense written off CIT Group’s bottom line. … Today we will analyse CIT Group’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank.

Simply Wall St -

Should You Worry About CIT Group Inc.'s (NYSE:CIT) CEO Pay Cheque?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Take the survey and be part of one of the most advanced studies of stock market investors to date … How Does Ellen Alemany's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is There Now An Opportunity In CIT Group Inc. (NYSE:CIT)?

saw significant share price movement during recent months on the NYSE, rising to highs of $54.29 and falling to the lows of $35.66. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at CIT Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Financial Metrics For CIT Group Inc (NYSE:CIT)

CIT Group Inc’s (NYSE:CIT) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$4.7b. … Following the Financial Crisis in 2008, a set of reforms termed Basel III was enforced to bolster risk management, regulation, and supervision in the financial services industry. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

CIT Company Info

Description

CIT Group Inc. operates as the holding company for CIT Bank, N.A. that provides banking and related services to commercial and individual customers. The company operates through Commercial Banking and Consumer Banking segments. The Commercial Banking segment offers lending, leasing, and other financial and advisory services primarily to small and middle-market companies; factoring, receivables management products, and secured supply chain financing; equipment leasing and secured financing to railroads and non-rail companies; equipment financing to small businesses. The Consumer Banking segment provides deposits, including checking and savings accounts, money market, and individual retirement accounts; time deposits and certificates of deposit; and offers residential mortgage and small business administration loans, as well as fiduciary services. The company also offers leasing and advisory, and online banking services. It operates through a network of 60 branches located in southern California. CIT Group Inc. was founded in 1908 and is based in New York, New York.

Details
Name: CIT Group Inc.
CIT
Exchange: NYSE
Founded: 1908
$5,003,349,777
99,017,411
Website: http://www.cit.com
Address: CIT Group Inc.
11 West 42nd Street,
New York,
New York, 10036,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CIT New Common Stock New York Stock Exchange US USD 10. Dec 2009
DB QIT1 New Common Stock Deutsche Boerse AG DE EUR 10. Dec 2009
Number of employees
Current staff
Staff numbers
3,678
CIT Group employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 00:12
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.