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 fair 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

-0.8%

NYSE:CIT

1.4%

US Banks

0.8%

US Market


1 Year Return

-13.7%

NYSE:CIT

-4.5%

US Banks

1.9%

US Market

CIT underperformed the Banks industry which returned -3.7% over the past year.

CIT underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CITIndustryMarket
7 Day-0.8%1.4%0.8%
30 Day9.6%8.9%3.4%
90 Day-8.8%5.2%2.1%
1 Year-11.5%-13.7%-1.7%-4.5%4.2%1.9%
3 Year38.2%31.0%54.7%44.0%46.7%37.2%
5 Year8.0%-0.7%63.7%45.8%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

3%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CIT Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

CIT Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

CIT Group is good value 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

CIT Group is poor value based on expected growth next year.


Price Based on Value of Assets

CIT Group is good value based on assets compared to the US Banks industry average.


Next Steps

Future Growth

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

7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CIT Group's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).

CIT Group's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).

CIT Group's revenue growth is positive but not above the United States of America market average.

CIT Group's earnings growth is positive but not above the United States of America market average.

CIT Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

CIT Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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 (23.2% vs -27.9%)

CIT Group's earnings growth has not exceeded the US Banks industry average in the past year (23.2% vs 31.7%).


Return on Equity

CIT Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CIT Group used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

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.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

CIT Group has an acceptable proportion of non-loan assets held.

CIT Group has a sufficient allowance for bad loans.

CIT Group's liabilities are made up of primarily low risk sources of funding.

CIT Group's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at CIT Group are broadly funded by customer deposits.

CIT Group has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

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

3.17%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CIT Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

CIT Group's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

Dividends paid are well covered by earnings (3.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Ellen Alemany (63yo)

3.4yrs

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

Ellen's remuneration is higher than average for companies of similar size in United States of America.

Ellen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

60yo

Average Age

The tenure for the CIT Group management team is about average.


Board Age and Tenure

9.7yrs

Average Tenure

66yo

Average Age

The tenure for the CIT Group board of directors is about average.


Insider Trading

More shares have been bought than sold by CIT Group individual insiders 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: 14.1yrs
  • Ellen Alemany (63yo)

    Chairwoman & CEO

    • Tenure: 3.4yrs
    • Compensation: US$8.96m
  • Steve Solk (64yo)

    President of Consumer Banking

    • Tenure: 2.8yrs
    • Compensation: US$2.05m
  • Jim Duffy (64yo)

    Chief Human Resources Officer & Executive VP

    • Tenure: 3.1yrs
    • 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: 2.4yrs
    • Compensation: US$3.51m
  • Gina Proia (47yo)

    Chief Marketing & Communications Officer and Executive VP

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

    Executive VP

    • Tenure: 0.5yrs
  • Barbara Callahan

    Senior VP & Head of Investor Relations

    • Tenure: 0yrs
  • Alla Whitston

    Chief Technology Officer

    • Tenure: 0.9yrs

Board Members

  • Mike Carpenter (72yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$197.00k
  • Bill Freeman (66yo)

    Director

    • Tenure: 16.2yrs
    • Compensation: US$205.00k
  • Jerry Rosenfeld (72yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$202.50k
  • Laura Unger (58yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$197.50k
  • John Ryan (73yo)

    Lead Director

    • Tenure: 11.3yrs
    • Compensation: US$215.00k
  • Ellen Alemany (63yo)

    Chairwoman & CEO

    • Tenure: 3.4yrs
    • 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: 5.6yrs
    • Compensation: US$197.50k
  • Al Frank (67yo)

    Director

    • Tenure: 4.1yrs
    • 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$4.395b
  • 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 Analysis2019/09/18 00:40
End of Day Share Price2019/09/17 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.