NYSE:CIT

Stock Analysis Report

Executive Summary

CIT Group Inc. operates as the holding company for CIT Bank, N.A.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has CIT Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.5%

CIT

5.8%

US Banks

3.4%

US Market


1 Year Return

-8.3%

CIT

1.0%

US Banks

5.4%

US Market

Return vs Industry: CIT underperformed the US Banks industry which returned 1% over the past year.

Return vs Market: CIT underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

CITIndustryMarket
7 Day6.5%5.8%3.4%
30 Day-5.0%-0.6%-1.0%
90 Day-10.2%3.1%-0.4%
1 Year-5.9%-8.3%3.9%1.0%7.7%5.4%
3 Year29.6%22.8%53.5%42.9%46.2%36.8%
5 Year5.0%-3.5%69.8%51.3%65.6%47.5%

Price Volatility Vs. Market

How volatile is CIT Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CIT Group undervalued compared to its fair value and its price relative to the market?

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CIT ($44.97) is trading below our estimate of fair value ($48.27)

Significantly Undervalued: CIT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CIT is good value based on its PE Ratio (10.1x) compared to the Banks industry average (12.6x).

PE vs Market: CIT is good value based on its PE Ratio (10.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CIT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CIT is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIT's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: CIT's earnings (7.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CIT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIT's revenue (5.4% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CIT's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CIT's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has CIT Group performed over the past 5 years?

-27.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CIT's earnings have declined by -27.9% per year over the past 5 years.

Accelerating Growth: CIT's earnings growth over the past year (23.2%) exceeds its 5-year average (-27.9% per year).

Earnings vs Industry: CIT earnings growth over the past year (23.2%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: CIT's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: CIT's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CIT's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CIT has a low level of unsold assets or inventory.

Debt Coverage by Assets: CIT's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: CIT's level of assets compared to its equity is low.

Allowance for Bad Loans: CIT has a sufficient allowance for bad loans.

Low Risk Liabilities: CIT's liabilities are made up of primarily low risk sources of funding.

Loan Level: CIT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CIT's loans are broadly funded by customer deposits.

Level of Bad Loans: CIT has an appropriate level of bad loans (0.85%)


Next Steps

Dividend

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

3.11%

Current Dividend Yield


Dividend Yield vs Market

company3.1%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CIT's dividend (3.11%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CIT's dividend (3.11%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, CIT has been paying a dividend for less than 10 years.

Growing Dividend: CIT's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.1%), CIT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIT's dividends in 3 years are forecast to be well covered by earnings (29.4% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Ellen Alemany (63yo)

3.5yrs

Tenure

US$8,961,198

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Ellen's total compensation ($USD8.96M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Ellen's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.9yrs

Average Tenure

60yo

Average Age

Experienced Management: CIT's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

66yo

Average Age

Experienced Board: CIT's board of directors are considered experienced (9.8 years average tenure).


Insider Trading

Insider Buying: CIT insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$84,90019 Aug 19
Steven Solk
EntityIndividual
Role
Senior Key Executive
President of Consumer Banking
Shares2,000
Max PriceUS$42.45
BuyUS$123,89115 Aug 19
Alan Frank
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$41.30
SellUS$74,65615 Aug 19
Jeffrey Lytle
EntityIndividual
Shares1,828
Max PriceUS$40.84
BuyUS$299,48315 Aug 19
Robert Rubino
EntityIndividual
Shares6,930
Max PriceUS$43.22
BuyUS$123,58815 Aug 19
John Fawcett
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares3,000
Max PriceUS$41.20
BuyUS$500,81714 Aug 19
Ellen Alemany
EntityIndividual
Role
Chief Executive Officer
Chairwoman & CEO
Shares11,500
Max PriceUS$43.55
BuyUS$307,71714 Aug 19
John Fawcett
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares7,000
Max PriceUS$43.96
BuyUS$43,13914 Aug 19
J. McPhail
EntityIndividual
Shares1,000
Max PriceUS$43.14
SellUS$48,50311 Mar 19
Matthew Galligan
EntityIndividual
Shares997
Max PriceUS$48.65
SellUS$111,55607 Mar 19
Edward Sperling
EntityIndividual
Shares2,224
Max PriceUS$50.16
SellUS$118,85726 Feb 19
Matthew Galligan
EntityIndividual
Shares2,300
Max PriceUS$51.68
SellUS$273,16820 Feb 19
Matthew Galligan
EntityIndividual
Shares5,375
Max PriceUS$50.82

Ownership Breakdown


Management Team

  • Donal O'Brien

    Co-Leader of Real Estate Advisory Practice and Senior MD of Real Estate Advisory Practice

    • Tenure: 14.2yrs
  • Ellen Alemany (63yo)

    Chairwoman & CEO

    • Tenure: 3.5yrs
    • Compensation: US$8.96m
  • Steve Solk (64yo)

    President of Consumer Banking

    • Tenure: 2.9yrs
    • Compensation: US$2.05m
  • Jim Duffy (64yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 3.2yrs
    • Compensation: US$1.73m
  • Denise Menelly (57yo)

    Executive VP & Head of Technology and Operations

    • Tenure: 3.3yrs
    • Compensation: US$2.20m
  • John Fawcett (60yo)

    Executive VP & CFO

    • Tenure: 2.5yrs
    • Compensation: US$3.51m
  • Gina Proia (47yo)

    Chief Marketing & Communications Officer and Executive VP

    • Tenure: 2.8yrs
  • Jim Hubbard (60yo)

    Executive VP

    • Tenure: 0.6yrs
  • Barbara Callahan

    Senior VP & Head of Investor Relations

    • Tenure: 0yrs
  • Alla Whitston

    Chief Technology Officer

    • Tenure: 1yrs

Board Members

  • Mike Carpenter (72yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$197.00k
  • Bill Freeman (66yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$205.00k
  • Jerry Rosenfeld (72yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$202.50k
  • Laura Unger (58yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$197.50k
  • John Ryan (73yo)

    Lead Director

    • Tenure: 11.4yrs
    • Compensation: US$215.00k
  • Ellen Alemany (63yo)

    Chairwoman & CEO

    • Tenure: 3.5yrs
    • Compensation: US$8.96m
  • R. Oates (65yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$236.25k
  • Chris Broom

    Chairman of Direct Capital Corporation

    • Tenure: 0yrs
  • Sheila Stamps (61yo)

    Director

    • Tenure: 5.7yrs
    • Compensation: US$197.50k
  • Al Frank (67yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$212.50k

Company Information

CIT Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CIT Group Inc.
  • Ticker: CIT
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$4.258b
  • Shares outstanding: 94.69m
  • Website: https://www.cit.com

Number of Employees


Location

  • CIT Group Inc.
  • 11 West 42nd Street
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CITNYSE (New York Stock Exchange)YesNew Common StockUSUSDDec 2009
QIT1DB (Deutsche Boerse AG)YesNew Common StockDEEURDec 2009

Biography

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 Cons ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:59
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.