NYSE:ITT

Stock Analysis Report

Executive Summary

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the energy, transportation, and industrial markets worldwide.

Rewards

Trading at 13.5% below its fair value

Earnings are forecast to grow 6.92% per year

Earnings grew by 42.5% over the past year

Risk Analysis

No risks detected for ITT from our risk checks.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

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


Market Performance


7 Day Return

3.6%

ITT

2.2%

US Machinery

1.1%

US Market


1 Year Return

43.0%

ITT

22.0%

US Machinery

17.8%

US Market

Return vs Industry: ITT exceeded the US Machinery industry which returned 22% over the past year.

Return vs Market: ITT exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

ITTIndustryMarket
7 Day3.6%2.2%1.1%
30 Day4.3%-0.9%1.4%
90 Day15.4%6.0%3.9%
1 Year44.4%43.0%24.3%22.0%20.3%17.8%
3 Year74.7%69.3%41.3%32.3%44.8%35.4%
5 Year97.9%86.9%70.5%50.3%71.3%52.4%

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

Valuation

Is ITT undervalued compared to its fair value and its price relative to the market?

13.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ITT ($71.31) is trading below our estimate of fair value ($82.48)

Significantly Below Fair Value: ITT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ITT is good value based on its PE Ratio (20.3x) compared to the Machinery industry average (22.6x).

PE vs Market: ITT is poor value based on its PE Ratio (20.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: ITT is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ITT is overvalued based on its PB Ratio (3.1x) compared to the US Machinery industry average (2.4x).


Next Steps

Future Growth

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

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITT's forecast earnings growth (6.9% per year) is above the savings rate (1.7%).

Earnings vs Market: ITT's earnings (6.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: ITT's revenue (4.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: ITT's revenue (4.3% 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%).


Next Steps

Past Performance

How has ITT performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITT has high quality earnings.

Growing Profit Margin: ITT's current net profit margins (11%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: ITT's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: ITT's earnings growth over the past year (42.5%) exceeds its 5-year average (3.6% per year).

Earnings vs Industry: ITT earnings growth over the past year (42.5%) exceeded the Machinery industry 13.5%.


Return on Equity

High ROE: ITT's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ITT's financial position?


Financial Position Analysis

Short Term Liabilities: ITT's short term assets ($1.7B) exceed its short term liabilities ($888.8M).

Long Term Liabilities: ITT's short term assets ($1.7B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ITT's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: ITT's debt to equity ratio has increased from 0.6% to 6.8% over the past 5 years.

Debt Coverage: ITT's debt is well covered by operating cash flow (255.5%).

Interest Coverage: ITT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ITT has a high level of physical assets or inventory.

Debt Coverage by Assets: ITT's debt is covered by short term assets (assets are 12.6x debt).


Next Steps

Dividend

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

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: ITT's dividend (0.82%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: ITT's dividend (0.82%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: ITT is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: ITT is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: ITT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ITT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Luca Savi (53yo)

0.9yrs

Tenure

US$3,847,877

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Luca's total compensation ($USD3.85M) is below average for companies of similar size in the US market ($USD6.70M).

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


Management Age and Tenure

2.2yrs

Average Tenure

48yo

Average Age

Experienced Management: ITT's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

67yo

Average Age

Experienced Board: ITT's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: ITT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$412,48222 Nov 19
Mary Gustafsson
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares5,978
Max PriceUS$69.00
SellUS$305,84406 Nov 19
Farrokh Batliwala
EntityIndividual
Role
Senior Key Executive
Senior VP and President of Connect & Control Technologies
Shares4,400
Max PriceUS$69.51
SellUS$496,88007 May 19
Thomas Scalera
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares8,070
Max PriceUS$61.57
SellUS$2,203,88507 May 19
Luca Savi
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares36,063
Max PriceUS$61.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jessica Kourakos

    Head of Investor Relations

    • Tenure: 2.2yrs
  • Beth Gustafsson (59yo)

    Senior VP

    • Tenure: 5.8yrs
    • Compensation: US$1.82m
  • Ryan Flynn (48yo)

    Senior VP & President of Asia Pacific

    • Tenure: 0yrs
  • Tom Scalera (47yo)

    Executive VP & CFO

    • Tenure: 8.2yrs
    • Compensation: US$3.27m
  • Luca Savi (53yo)

    CEO, President & Director

    • Tenure: 0.9yrs
    • Compensation: US$3.85m
  • Farrokh Batliwala (43yo)

    Senior VP and President of Connect & Control Technologies

    • Tenure: 2.6yrs
    • Compensation: US$1.32m
  • George Hanna

    Senior VP & President of Industrial Process

    • Tenure: 0yrs
  • Carlo Ghirardo (48yo)

    Senior VP & President of Motion Technologies

    • Tenure: 1.7yrs
  • John Capela (39yo)

    VP & Chief Accounting Officer

    • Tenure: 1.1yrs
  • Maurine Lembesis (52yo)

    Chief Human Resources Officer & Senior VP

    • Tenure: 0yrs

Board Members

  • Frank MacInnis (72yo)

    Independent Chairman of the Board

    • Tenure: 8.2yrs
    • Compensation: US$325.02k
  • Don DeFosset (70yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$210.03k
  • Tim Powers (70yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$215.03k
  • Rebecca McDonald (67yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$200.03k
  • Christina Gold (71yo)

    Independent Director

    • Tenure: 22yrs
    • Compensation: US$200.03k
  • Geraud Darnis (59yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$200.03k
  • Richard Lavin (67yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$210.03k
  • Nick Fanandakis (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$200.03k
  • Orlando Ashford (50yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$200.03k
  • Luca Savi (53yo)

    CEO, President & Director

    • Tenure: 0.9yrs
    • Compensation: US$3.85m

Company Information

ITT Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ITT Inc.
  • Ticker: ITT
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$6.209b
  • Shares outstanding: 87.70m
  • Website: https://www.itt.com

Number of Employees


Location

  • ITT Inc.
  • 1133 Westchester Avenue
  • White Plains
  • New York
  • 10604
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITTNYSE (New York Stock Exchange)YesNew Common StockUSUSDJan 1968
2IIDB (Deutsche Boerse AG)YesNew Common StockDEEURJan 1968

Biography

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:  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:37
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.