NYSE:CIT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

CIT

-1.2%

US Banks

-1.1%

US Market


1 Year Return

-8.3%

CIT

9.8%

US Banks

17.8%

US Market

Return vs Industry: CIT underperformed the US Banks industry which returned 10.3% over the past year.

Return vs Market: CIT underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

CITIndustryMarket
7 Day-0.6%-1.2%-1.1%
30 Day2.2%0.4%1.5%
90 Day3.8%-0.8%6.6%
1 Year-5.6%-8.3%13.0%9.8%20.2%17.8%
3 Year16.2%9.3%23.4%14.5%47.5%38.1%
5 Year11.0%1.1%72.2%52.7%71.2%52.4%

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?

30.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIT ($47) is trading below our estimate of fair value ($67.9)

Significantly Below Fair Value: CIT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CIT is good value based on its PE Ratio (8.9x) compared to the Banks industry average (12.6x).

PE vs Market: CIT is good value based on its PE Ratio (8.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CIT is poor value based on its PEG Ratio (1.5x)


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?

6.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIT's forecast earnings growth (6.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CIT's earnings (6.1% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: CIT's revenue (0.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CIT's revenue (0.2% 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 (9.5%).


Next Steps

Past Performance

How has CIT Group performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIT has high quality earnings.

Growing Profit Margin: CIT's current net profit margins (22.9%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: CIT's earnings have declined by -20.7% per year over the past 5 years.

Accelerating Growth: CIT's earnings growth over the past year (12.6%) exceeds its 5-year average (-20.7% per year).

Earnings vs Industry: CIT earnings growth over the past year (12.6%) exceeded the Banks industry 12.2%.


Return on Equity

High ROE: CIT's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


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 0.5x 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 (1.04%)


Next Steps

Dividend

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

2.98%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.5%

Current dividend yield vs market & industry

Notable Dividend: CIT's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CIT's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), 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 (29.9% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Ellen Alemany (63yo)

3.8yrs

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 ($USD8.96M) is above average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ellen Alemany
Chairwoman & CEO3.8yrsUS$8.96m0.30% $13.8m
John Fawcett
Executive VP & CFO2.8yrsUS$3.51m0.019% $866.2k
Denise Menelly
Executive VP & Head of Technology and Operations3.7yrsUS$2.20m0.033% $1.5m
Steven Solk
President of Consumer Banking3.3yrsUS$2.05m0.019% $861.1k
Alla Whitston
Chief Technology Officer1.3yrsno datano data
Barbara Callahan
Senior VP & Head of Investor Relations0yrsno datano data
James Hubbard
Executive VP0.9yrsno datano data
Gina Proia
Chief Marketing & Communications Officer and Executive VP3.2yrsno data0.020% $910.0k
James Duffy
Chief Human Resources Officer & Executive VP3.5yrsUS$1.73m0.019% $855.6k
Donal O'Brien
Co-Leader of Real Estate Advisory Practice and Senior MD of Real Estate Advisory Practice14.5yrsno datano data

3.3yrs

Average Tenure

60yo

Average Age

Experienced Management: CIT's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ellen Alemany
Chairwoman & CEO3.8yrsUS$8.96m0.30% $13.8m
Michael Carpenter
Independent Director3.8yrsUS$197.00k0.0059% $273.2k
William Freeman
Independent Director16.6yrsUS$205.00k0.012% $541.4k
Gerald Rosenfeld
Independent Director10.1yrsUS$202.50k0.018% $811.4k
Laura Unger
Independent Director10.1yrsUS$197.50k0.0071% $328.5k
John Ryan
Lead Director11.8yrsUS$215.00k0.012% $569.5k
R. Oates
Independent Director10.2yrsUS$236.25k0.014% $636.3k
Christopher Broom
Chairman of Direct Capital Corporation0yrsno datano data
Sheila Stamps
Independent Director6yrsUS$197.50k0.0063% $290.3k
Alan Frank
Independent Director4.5yrsUS$212.50k0.026% $1.2m

10.1yrs

Average Tenure

66yo

Average Age

Experienced Board: CIT's board of directors are seasoned and experienced ( 10.1 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 not been meaningfully diluted in the past year.


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$4.607b
  • Shares outstanding: 98.03m
  • 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
CITU.POTCPK (Pink Sheets LLC)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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 02:05
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.