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ITT

NYSE:ITT
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ITT
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The last earnings update was 21 days ago. More info.


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ITT Share Price and Events
7 Day Returns
-2.8%
NYSE:ITT
-3.9%
US Machinery
-2.1%
US Market
1 Year Returns
10.2%
NYSE:ITT
-7%
US Machinery
1.3%
US Market
ITT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ITT (ITT) -2.8% -6.3% -0.8% 10.2% 62.5% 33.2%
US Machinery -3.9% -9.8% -5.6% -7% 37.9% 19.3%
US Market -2.1% -4.2% 0% 1.3% 33.5% 38%
1 Year Return vs Industry and Market
  • ITT outperformed the Machinery industry which returned -7% over the past year.
  • ITT outperformed the Market in United States of America which returned 1.3% over the past year.
Price Volatility
ITT
Industry
5yr Volatility vs Market

ITT Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ITT to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ITT.

NYSE:ITT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:ITT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.046 (1 + (1- 21%) (4.11%))
1.053
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.053 * 5.96%)
9.01%

Discounted Cash Flow Calculation for NYSE:ITT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ITT is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:ITT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.01%)
2019 304.52 Analyst x5 279.35
2020 339.65 Analyst x4 285.83
2021 364.25 Analyst x2 281.20
2022 390.95 Analyst x2 276.87
2023 419.00 Analyst x1 272.21
2024 442.76 Est @ 5.67% 263.88
2025 463.96 Est @ 4.79% 253.66
2026 483.31 Est @ 4.17% 242.40
2027 501.38 Est @ 3.74% 230.68
2028 518.61 Est @ 3.44% 218.89
Present value of next 10 years cash flows $2,604.99
NYSE:ITT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $518.61 × (1 + 2.73%) ÷ (9.01% – 2.73%)
$8,485.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,485.34 ÷ (1 + 9.01%)10
$3,581.44
NYSE:ITT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,604.99 + $3,581.44
$6,186.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,186.43 / 87.80
$70.46
NYSE:ITT Discount to Share Price
Calculation Result
Value per share (USD) From above. $70.46
Current discount Discount to share price of $58.19
= -1 x ($58.19 - $70.46) / $70.46
17.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ITT is available for.
Intrinsic value
17%
Share price is $58.19 vs Future cash flow value of $70.46
Current Discount Checks
For ITT to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ITT's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • ITT's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ITT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ITT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:ITT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.45
NYSE:ITT Share Price ** NYSE (2019-05-24) in USD $58.19
United States of America Machinery Industry PE Ratio Median Figure of 100 Publicly-Listed Machinery Companies 19.91x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ITT.

NYSE:ITT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ITT Share Price ÷ EPS (both in USD)

= 58.19 ÷ 3.45

16.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITT is good value based on earnings compared to the US Machinery industry average.
  • ITT is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does ITT's expected growth come at a high price?
Raw Data
NYSE:ITT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.85x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
9.3%per year
United States of America Machinery Industry PEG Ratio Median Figure of 82 Publicly-Listed Machinery Companies 1.41x
United States of America Market PEG Ratio Median Figure of 2,120 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

NYSE:ITT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.85x ÷ 9.3%

1.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITT is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ITT's assets?
Raw Data
NYSE:ITT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $21.28
NYSE:ITT Share Price * NYSE (2019-05-24) in USD $58.19
United States of America Machinery Industry PB Ratio Median Figure of 128 Publicly-Listed Machinery Companies 2.25x
United States of America Market PB Ratio Median Figure of 5,207 Publicly-Listed Companies 1.8x
NYSE:ITT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ITT Share Price ÷ Book Value per Share (both in USD)

= 58.19 ÷ 21.28

2.73x

* Primary Listing of ITT.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ITT is overvalued based on assets compared to the US Machinery industry average.
X
Value checks
We assess ITT's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. ITT has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ITT Future Performance

 How is ITT expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ITT expected to grow at an attractive rate?
  • ITT's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • ITT's earnings growth is positive but not above the United States of America market average.
  • ITT's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:ITT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:ITT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 9.3%
NYSE:ITT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 4.4%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:ITT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:ITT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,387 513 421 1
2022-12-31 3,261 494 407 2
2021-12-31 3,096 463 382 4
2020-12-31 3,002 431 345 13
2019-12-31 2,847 395 289 11
NYSE:ITT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,751 368 303
2018-12-31 2,745 368 332
2018-09-30 2,750 312 216
2018-06-30 2,715 271 192
2018-03-31 2,649 260 170
2017-12-31 2,585 245 115
2017-09-30 2,490 278 205
2017-06-30 2,427 266 206
2017-03-31 2,422 266 190
2016-12-31 2,405 253 182
2016-09-30 2,484 234 195
2016-06-30 2,504 219 203

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ITT's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
  • ITT's revenue is expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:ITT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from ITT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ITT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.60 5.60 5.60 1.00
2022-12-31 4.92 5.15 4.68 2.00
2021-12-31 4.53 4.70 4.36 2.00
2020-12-31 3.88 4.25 3.22 8.00
2019-12-31 3.25 3.49 3.01 6.00
NYSE:ITT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.45
2018-12-31 3.79
2018-09-30 2.46
2018-06-30 2.18
2018-03-31 1.93
2017-12-31 1.30
2017-09-30 2.32
2017-06-30 2.33
2017-03-31 2.14
2016-12-31 2.04
2016-09-30 2.18
2016-06-30 2.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ITT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ITT's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ITT has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ITT Past Performance

  How has ITT performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ITT's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ITT's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • ITT's 1-year earnings growth exceeds its 5-year average (78% vs -10.9%)
  • ITT's earnings growth has exceeded the US Machinery industry average in the past year (78% vs 28.5%).
Earnings and Revenue History
ITT's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ITT Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:ITT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,751.30 302.60 414.00 97.20
2018-12-31 2,745.10 332.40 430.50 98.40
2018-09-30 2,750.30 215.80 429.60 100.20
2018-06-30 2,714.70 191.80 432.20 99.00
2018-03-31 2,648.80 170.00 433.70 95.80
2017-12-31 2,585.30 115.00 431.30 93.50
2017-09-30 2,490.10 204.60 422.30 89.90
2017-06-30 2,426.80 205.90 405.50 85.50
2017-03-31 2,422.10 190.30 400.40 84.00
2016-12-31 2,405.40 181.90 404.40 80.50
2016-09-30 2,483.80 194.90 410.50 82.60
2016-06-30 2,504.00 203.10 417.40 82.00
2016-03-31 2,506.00 311.40 424.40 79.80
2015-12-31 2,485.60 312.40 417.50 78.90
2015-09-30 2,478.80 309.20 447.20 75.40
2015-06-30 2,534.00 293.30 458.40 77.50
2015-03-31 2,568.80 193.90 471.80 77.20
2014-12-31 2,654.60 188.40 491.40 76.60
2014-09-30 2,640.10 165.90 458.90 74.80
2014-06-30 2,617.00 518.30 465.70 70.80
2014-03-31 2,563.20 501.80 464.40 68.60
2013-12-31 2,496.90 487.70 487.70 67.30
2013-09-30 2,405.70 498.90 454.30 63.80
2013-06-30 2,319.20 126.60 430.30 62.80
2013-03-31 2,267.90 118.10 396.70 63.00
2012-12-31 2,227.80 109.50 388.10 62.70
2012-09-30 2,157.70 -456.80 367.90 62.00
2012-06-30 2,126.10 -547.00 344.00 62.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ITT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ITT used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • ITT has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ITT's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ITT has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ITT Health

 How is ITT's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ITT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ITT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ITT's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of ITT's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ITT Company Filings, last reported 1 month ago.

NYSE:ITT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,871.30 210.00 554.00
2018-12-31 1,824.90 125.00 561.20
2018-09-30 1,787.80 156.20 525.80
2018-06-30 1,682.30 217.90 449.60
2018-03-31 1,660.50 255.90 438.70
2017-12-31 1,597.80 171.90 389.80
2017-09-30 1,653.20 191.10 395.60
2017-06-30 1,546.00 204.10 355.30
2017-03-31 1,492.00 217.10 348.50
2016-12-31 1,428.40 216.30 460.70
2016-09-30 1,457.70 251.90 490.80
2016-06-30 1,416.80 219.00 453.40
2016-03-31 1,422.90 275.20 499.40
2015-12-31 1,365.40 248.50 480.60
2015-09-30 1,366.90 10.50 515.20
2015-06-30 1,267.80 68.70 555.10
2015-03-31 1,114.60 113.50 585.40
2014-12-31 1,220.30 1.50 589.40
2014-09-30 1,301.70 9.30 590.20
2014-06-30 1,267.10 32.70 624.50
2014-03-31 1,239.60 37.60 579.20
2013-12-31 1,206.90 48.90 620.20
2013-09-30 1,126.00 77.30 583.00
2013-06-30 660.50 51.30 553.80
2013-03-31 667.00 55.10 539.80
2012-12-31 703.20 26.90 582.70
2012-09-30 769.60 0.00 762.00
2012-06-30 690.70 40.30 739.10
  • ITT's level of debt (11.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (3% vs 11.2% today).
  • Debt is well covered by operating cash flow (175.3%, greater than 20% of total debt).
  • ITT earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess ITT's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ITT has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ITT Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from ITT dividends. Estimated to be 1.1% next year.
If you bought $2,000 of ITT shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ITT's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • ITT's dividend is below the markets top 25% of dividend payers in United States of America (3.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:ITT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:ITT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.86 1.00
2022-12-31 0.69 2.00
2021-12-31 0.68 4.00
2020-12-31 0.63 8.00
2019-12-31 0.59 8.00
NYSE:ITT Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-22 0.588 1.005
2019-02-22 0.588 0.987
2018-10-16 0.536 1.032
2018-08-07 0.536 0.907
2018-05-23 0.536 0.993
2018-02-16 0.536 1.048
2017-10-11 0.512 0.986
2017-08-09 0.512 1.226
2017-05-10 0.512 1.276
2017-02-14 0.512 1.254
2016-10-18 0.496 1.267
2016-08-10 0.496 1.404
2016-05-11 0.496 1.476
2016-02-12 0.496 1.364
2015-08-12 0.473 1.328
2015-05-08 0.473 1.166
2015-02-13 0.473 1.164
2014-10-08 0.440 1.099
2014-08-06 0.440 0.935
2014-05-20 0.440 0.950
2014-02-20 0.440 1.015
2013-10-15 0.400 0.977
2013-08-08 0.400 1.147
2013-05-08 0.400 1.308
2013-02-27 0.400 1.450
2012-10-10 0.364 1.569
2012-08-16 0.364 1.768
2012-05-09 0.364 1.884
2012-02-23 0.364 1.611
2011-08-16 2.000 6.672
2011-05-10 2.000 1.821
2011-02-23 2.000 1.726
2010-10-12 2.000 1.934
2010-08-09 2.000 2.195
2010-05-11 2.000 2.102
2010-02-22 2.000 1.860
2009-10-06 1.700 1.660
2009-08-06 1.700 1.682

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of ITT's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.5x coverage).
X
Income/ dividend checks
We assess ITT's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ITT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ITT has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ITT Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Luca Savi
COMPENSATION $3,847,877
AGE 52
TENURE AS CEO 0.3 years
CEO Bio

Mr. Luca Savi is a Director of ITT Inc since January 1, 2019. Mr. Luca Savi was the Chief Operating Officer of ITT Inc. since January 05, 2017 until January 1, 2019 and has been its President since August 2, 2018. Mr. Savi served as an Executive Vice President of ITT Inc. since March 01, 2016 until 2018. He served as President of Motion Technologies Business at ITT Inc. since November 09, 2011 until January 05, 2017 and as its Senior Vice President since November 2011 until March 01, 2016. He was responsible for delivering the strategic and operating plans of ITT's Motion Technologies business, which employs approximately 2,000 people globally and had 2010 revenues of $548 million. Prior to ITT, he worked at Comau. Most recently, he held several key leadership roles with Comau in Italy, China and United States. Previously, Mr. Savi also held senior roles at Honeywell International, Royal Dutch Shell and Ferruzzi-Montedison Group.

CEO Compensation
  • Luca's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Luca's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the ITT management team in years:

1.8
Average Tenure
47
Average Age
  • The average tenure for the ITT management team is less than 2 years, this suggests a new team.
Management Team

Luca Savi

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
52
TENURE
0.3 yrs

Tom Scalera

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
46
TENURE
7.6 yrs

Beth Gustafsson

TITLE
Senior VP
COMPENSATION
$2M
AGE
58
TENURE
5.3 yrs

Farrokh Batliwala

TITLE
Senior VP and President of Connect & Control Technologies
COMPENSATION
$1M
AGE
42
TENURE
2 yrs

John Capela

TITLE
VP & Chief Accounting Officer
AGE
38
TENURE
0.5 yrs

Jessica Kourakos

TITLE
Head of Investor Relations
TENURE
1.6 yrs

Maurine Lembesis

TITLE
Chief Human Resources Officer & Senior VP
AGE
51

David Malinas

TITLE
Senior VP & President of Industrial Process
AGE
43
TENURE
1.9 yrs

Carlo Ghirardo

TITLE
Senior VP & President of Motion Technologies
AGE
47
TENURE
1.1 yrs

Ryan Flynn

TITLE
Senior VP & President of Asia Pacific
AGE
47
Board of Directors Tenure

Average tenure and age of the ITT board of directors in years:

5.7
Average Tenure
66
Average Age
  • The tenure for the ITT board of directors is about average.
Board of Directors

Frank MacInnis

TITLE
Chairman of the Board
COMPENSATION
$325K
AGE
71
TENURE
7.6 yrs

Luca Savi

TITLE
CEO, President & Director
COMPENSATION
$4M
AGE
52
TENURE
0.3 yrs

Don DeFosset

TITLE
Independent Director
COMPENSATION
$210K
AGE
69
TENURE
7.6 yrs

Richard Lavin

TITLE
Independent Director
COMPENSATION
$210K
AGE
66
TENURE
6 yrs

Tim Powers

TITLE
Independent Director
COMPENSATION
$215K
AGE
69
TENURE
4.3 yrs

Christina Gold

TITLE
Independent Director
COMPENSATION
$200K
AGE
70
TENURE
21.4 yrs

Orlando Ashford

TITLE
Independent Director
COMPENSATION
$200K
AGE
49
TENURE
7.4 yrs

Rebecca McDonald

TITLE
Independent Director
COMPENSATION
$200K
AGE
66
TENURE
5.4 yrs

Geraud Darnis

TITLE
Independent Director
COMPENSATION
$200K
AGE
58
TENURE
3.6 yrs

Nick Fanandakis

TITLE
Director
COMPENSATION
$200K
AGE
62
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • ITT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. May 19 Sell Luca Savi Individual 06. May 19 06. May 19 -36,063 $61.60 $-2,203,885
07. May 19 Sell Thomas Scalera Individual 06. May 19 06. May 19 -8,070 $61.57 $-496,880
X
Management checks
We assess ITT's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ITT has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ITT News

Simply Wall St News

How Good Is ITT Inc. (NYSE:ITT), When It Comes To ROE?

One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.16 in profit. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ITT: 16% = US$303m ÷ US$1.9b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

How ITT Inc. (NYSE:ITT) Could Add Value To Your Portfolio

Help shape the future of investing tools and you could win a $250 gift card! … Looking at the company as a whole, as a potential stock investment, I believe ITT has a lot to offer. … is a company with great financial health as well as a

Simply Wall St -

Is ITT Inc.'s (NYSE:ITT) Capital Allocation Ability Worth Your Time?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Do You Like ITT Inc. (NYSE:ITT) At This P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use ITT Inc.'s (NYSE:ITT) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Now The Time To Look At Buying ITT Inc. (NYSE:ITT)?

received a lot of attention from a substantial price increase on the NYSE over the last few months. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, what if the stock is still a bargain.

Simply Wall St -

Is ITT Inc. (NYSE:ITT) A Financially Strong Company?

Today we will look at ITT’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of ITT's financial health, so you should conduct further analysis. … ITT’s Debt (And Cash Flows)

Simply Wall St -

What Are Analysts Saying About ITT Inc.'s (NYSE:ITT) Long Term Outlook?

The most recent earnings announcement ITT Inc.'s (NYSE:ITT) released in December 2018a … confirmed … business

Simply Wall St -

Calculating The Intrinsic Value Of ITT Inc. (NYSE:ITT)

I am going to run you through how I calculated the intrinsic value of ITT Inc. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Something To Consider Before Buying ITT Inc. (NYSE:ITT) For The 1.0% Dividend

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … (NYSE:ITT) has been paying a dividend to shareholders. … Does ITT tick all the boxes of a great dividend stock?

Simply Wall St -

What Are Analysts Saying About The Future Of ITT Inc.'s (NYSE:ITT)?

Looking at ITT Inc.'s (NYSE:ITT) earnings update in September 2018,. … the consensus outlook from analysts appear fairly confident, … the past 5-year average growth rate of -22%

Simply Wall St -

ITT Company Info

Description

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide. The company operates in three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment manufactures braking pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, light- and heavy-duty commercial and military vehicles, buses, and rail. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization systems; and centrifugal pumps, twin screw and positive displacement pumps, and water systems, as well as aftermarket solutions, such as repairs and upgrades services. It serves various customers in industries, such as chemical, oil and gas, mining, and other industrial process markets. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized control components for critical applications supporting various markets, including aerospace, defense, industrial, transportation, medical, and oil and gas. The connector product portfolio includes electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consist of fuel and water pumps, valves, electro-mechanical rotary and linear actuators, and pressure, temperature, limit, and flow switches for various aircraft systems. ITT Inc. was founded in 1920 and is headquartered in White Plains, New York.

Details
Name: ITT Inc.
ITT
Exchange: NYSE
Founded: 1920
$5,108,992,736
87,798,466
Website: http://www.itt.com
Address: ITT Inc.
1133 Westchester Avenue,
White Plains,
New York, 10604,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ITT New Common Stock New York Stock Exchange US USD 02. Jan 1968
DB 2II New Common Stock Deutsche Boerse AG DE EUR 02. Jan 1968
Number of employees
Current staff
Staff numbers
10,000
ITT employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/24 23:39
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/20
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.