NYSE:CIT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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

Stable Share Price: CIT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.9%

CIT

-6.2%

US Banks

-0.8%

US Market


1 Year Return

-63.9%

CIT

-31.3%

US Banks

13.8%

US Market

Return vs Industry: CIT underperformed the US Banks industry which returned -31.3% over the past year.

Return vs Market: CIT underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

CITIndustryMarket
7 Day-3.9%-6.2%-0.8%
30 Day-19.1%-9.9%-5.7%
90 Day-21.2%-4.2%8.6%
1 Year-61.8%-63.9%-28.9%-31.3%16.4%13.8%
3 Year-63.4%-66.8%-22.5%-28.8%36.9%27.8%
5 Year-55.0%-60.4%14.9%0.8%85.0%64.2%

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?

0.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CIT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CIT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CIT is unprofitable, so we can't compare its PE Ratio to the US Banks industry average.

PE vs Market: CIT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CIT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CIT is good value based on its PB Ratio (0.3x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is CIT Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

111.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CIT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CIT's is expected to become profitable in the next 3 years.

Revenue vs Market: CIT's revenue (7% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CIT's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIT's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has CIT Group performed over the past 5 years?

-28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIT is currently unprofitable.

Growing Profit Margin: CIT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CIT is unprofitable, and losses have increased over the past 5 years at a rate of 28.6% per year.

Accelerating Growth: Unable to compare CIT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CIT is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-3%).


Return on Equity

High ROE: CIT has a negative Return on Equity (-7.6%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: CIT's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: CIT has a sufficient allowance for bad loans (216%).

Low Risk Liabilities: 82% of CIT's liabilities are made up of primarily low risk sources of funding.

Loan Level: CIT has an appropriate level of Loans to Assets ratio (59%).

Low Risk Deposits: CIT's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: CIT has an appropriate level of bad loans (1.4%).


Next Steps

Dividend

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

8.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CIT's dividend (8.57%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: CIT's dividend (8.57%) is in the top 25% of dividend payers in the US market (4.94%)


Stability and Growth of Payments

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 7 years.


Current Payout to Shareholders

Dividend Coverage: CIT is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CIT's dividends in 3 years are forecast to be well covered by earnings (44.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Ellen Alemany (64 yo)

4.42yrs

Tenure

US$8,339,413

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 ($USD8.34M) is above average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Ellen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ellen Alemany
Chairwoman & CEO4.42yrsUS$8.34m0.26%
$ 4.2m
John Fawcett
Executive VP & CFO3.42yrsUS$3.76m0.053%
$ 856.4k
Philip Robbins
President of Asset Management & Capital Markets1.08yrsUS$2.69mno data
David Harnisch
President of Commercial Finance & Real Estate1yrUS$4.24mno data
Denise Menelly
Executive VP and Head of Technology & Operations4.25yrsUS$2.20m0.037%
$ 594.9k
Alla Whitston
Chief Technology Officer1.92yrsno datano data
Barbara Callahan
Senior VP & Head of Investor Relationsno datano datano data
James Hubbard
Executive VP1.5yrsno data0.0085%
$ 137.4k
Gina Proia
Chief Marketing & Communications Officer and Executive VP3.75yrsno data0.033%
$ 526.3k
James Duffy
Chief Human Resources Officer & Executive VP4.08yrsUS$1.73m0.023%
$ 372.4k
Donal O'Brien
Co-Leader of Real Estate Advisory Practice and Senior MD of Real Estate Advisory Practice15.08yrsno datano data
Paul Hughes
Chief Financial Officer of CIT Corporate Finance Segmentno datano datano data

3.6yrs

Average Tenure

61yo

Average Age

Experienced Management: CIT's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ellen Alemany
Chairwoman & CEO4.42yrsUS$8.34m0.26%
$ 4.2m
Michael Carpenter
Independent Director4.33yrsUS$230.00k0.010%
$ 164.1k
William Freeman
Independent Director17.17yrsUS$230.00k0.014%
$ 217.5k
Rosenfeld Gerald
Independent Director10.67yrsUS$240.00k0.025%
$ 402.8k
Laura Unger
Independent Director10.67yrsUS$230.00k0.021%
$ 332.3k
John Ryan
Independent Lead Director12.33yrsUS$255.00k0.014%
$ 232.0k
Dorene Dominguez
Independent Director3.58yrsUS$218.50k0.0065%
$ 105.2k
R. Oates
Independent Director10.75yrsUS$265.00k0.019%
$ 301.8k
Christopher Broom
Chairman of Direct Capital Corporationno datano datano data
Sheila Stamps
Independent Director6.58yrsUS$230.00k0.0088%
$ 141.7k
Michael Brosnan
Independent Director3.83yrsUS$245.00k0.020%
$ 323.3k
Alan Frank
Independent Director5.08yrsUS$245.00k0.040%
$ 650.2k

6.6yrs

Average Tenure

66yo

Average Age

Experienced Board: CIT's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Top Shareholders

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$1.609b
  • Shares outstanding: 98.45m
  • 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
CIT.PRBNYSE (New York Stock Exchange)5.625 PFD SER BUSUSDNov 2019

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 Analysis2020/09/28 05:48
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.