ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. More Details
Flawless balance sheet and slightly overvalued.
Share Price & News
How has ITT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ITT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ITT's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: ITT underperformed the US Machinery industry which returned 89.5% over the past year.
Return vs Market: ITT exceeded the US Market which returned 46% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is ITT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
14 hours ago | Simply Wall StHow Many ITT Inc. (NYSE:ITT) Shares Have Insiders Sold, In The Last Year?
2 weeks ago | Simply Wall StWe Think ITT (NYSE:ITT) Can Stay On Top Of Its Debt
1 month ago | Simply Wall StThere Are Reasons To Feel Uneasy About ITT's (NYSE:ITT) Returns On Capital
Is ITT undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ITT ($96.03) is trading below our estimate of fair value ($121.7)
Significantly Below Fair Value: ITT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ITT is poor value based on its PE Ratio (116.9x) compared to the US Machinery industry average (34.4x).
PE vs Market: ITT is poor value based on its PE Ratio (116.9x) compared to the US market (19.8x).
Price to Earnings Growth Ratio
PEG Ratio: ITT is poor value based on its PEG Ratio (6.4x)
Price to Book Ratio
PB vs Industry: ITT is overvalued based on its PB Ratio (3.9x) compared to the US Machinery industry average (3.3x).
How is ITT forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ITT's forecast earnings growth (18.3% per year) is above the savings rate (2%).
Earnings vs Market: ITT's earnings (18.3% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: ITT's earnings are forecast to grow, but not significantly.
Revenue vs Market: ITT's revenue (6.9% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: ITT's revenue (6.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ITT's Return on Equity is forecast to be low in 3 years time (16.8%).
How has ITT performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ITT has a large one-off loss of $150.9M impacting its March 31 2021 financial results.
Growing Profit Margin: ITT's current net profit margins (2.8%) are lower than last year (11.9%).
Past Earnings Growth Analysis
Earnings Trend: ITT's earnings have declined by 0.5% per year over the past 5 years.
Accelerating Growth: ITT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ITT had negative earnings growth (-78.9%) over the past year, making it difficult to compare to the Machinery industry average (-6.7%).
Return on Equity
High ROE: ITT's Return on Equity (3.4%) is considered low.
How is ITT's financial position?
Financial Position Analysis
Short Term Liabilities: ITT's short term assets ($1.9B) exceed its short term liabilities ($826.5M).
Long Term Liabilities: ITT's short term assets ($1.9B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: ITT's debt to equity ratio (3.5%) is considered satisfactory.
Reducing Debt: ITT's debt to equity ratio has reduced from 19.2% to 3.5% over the past 5 years.
Debt Coverage: ITT's debt is well covered by operating cash flow (615.9%).
Interest Coverage: ITT earns more interest than it pays, so coverage of interest payments is not a concern.
What is ITT current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ITT's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: ITT's dividend (0.92%) is low compared to the top 25% of dividend payers in the US market (3.41%).
Stability and Growth of Payments
Stable Dividend: ITT's dividend payments have been volatile in the past 10 years.
Growing Dividend: ITT's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (88.5%), ITT's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ITT's dividends in 3 years are forecast to be well covered by earnings (20.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Luca Savi (54 yo)
Mr. Luca Savi serves as a Director and Chief Executive officer of ITT Inc since January 1, 2019 and serves as its President since August 2, 2018. He was the Chief Operating Officer of ITT Inc. since Januar...
CEO Compensation Analysis
Compensation vs Market: Luca's total compensation ($USD6.63M) is about average for companies of similar size in the US market ($USD6.51M).
Compensation vs Earnings: Luca's compensation has been consistent with company performance over the past year.
Experienced Management: ITT's management team is considered experienced (2.3 years average tenure).
Experienced Board: ITT's board of directors are considered experienced (5.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ITT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ITT Inc.'s company bio, employee growth, exchange listings and data sources
- Name: ITT Inc.
- Ticker: ITT
- Exchange: NYSE
- Founded: 1920
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$8.268b
- Shares outstanding: 86.10m
- Website: https://www.itt.com
Number of Employees
- ITT Inc.
- 1133 Westchester Avenue
- White Plains
- New York
- United States
ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The company operates through three segme...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/18 05:48|
|End of Day Share Price||2021/05/17 00:00|
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.