ITT (NYSE:ITT) - Share price, News & Analysis

Q: What is the Fair Price of ITT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ITT ($67.22) is trading below our estimate of [[fair value]] ($161.68)

ITT fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	4/6
Financial Health	3/6
Dividends	1/6

ITT Stock Overview

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

Rewards

Trading at 58.4% below our estimate of its fair value

Earnings are forecast to grow 11.76% per year

Earnings grew by 327.5% over the past year

Risk Analysis

High level of non-cash earnings

ITT Competitors

Donaldson Company

NYSE:DCI

US$5.9b

Chart Industries

NYSE:GTLS

US$5.7b

RBC Bearings

NasdaqGS:ROLL

US$5.2b

Crane Holdings

NYSE:CR

US$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for ITT
Historical stock prices
Current Share Price	US$67.22
52 Week High	US$105.54
52 Week Low	US$64.09
Beta	1.5
1 Month Change	-7.90%
3 Month Change	-10.62%
1 Year Change	-26.61%
3 Year Change	2.07%
5 Year Change	64.72%
Change since IPO	12.27%

Recent News & Updates

Jun 25

Is ITT Inc. (NYSE:ITT) Potentially Undervalued?

While ITT Inc. ( NYSE:ITT ) might not be the most widely known stock at the moment, it saw significant share price...

May 27

Are Investors Undervaluing ITT Inc. (NYSE:ITT) By 49%?

How far off is ITT Inc. ( NYSE:ITT ) from its intrinsic value? Using the most recent financial data, we'll take a look...

May 14

Returns Are Gaining Momentum At ITT (NYSE:ITT)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

	ITT	US Machinery	US Market
7D	1.1%	-1.3%	1.6%
1Y	-26.6%	-22.5%	-20.8%

Return vs Industry: ITT underperformed the US Machinery industry which returned -20.6% over the past year.

Return vs Market: ITT underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is ITT's price volatile compared to industry and market?
ITT volatility
ITT Average Weekly Movement	5.1%
Machinery Industry Average Movement	6.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ITT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ITT's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1920	9,900	Luca Savi	https://www.itt.com

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide. The company operates through three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment manufactures brake pads, shims, shock absorbers, and energy absorption components; and sealing technologies primarily for the transportation industry, including passenger cars, trucks, light- and heavy-duty commercial and military vehicles, buses, and trains.

ITT Fundamentals Summary

How do ITT's earnings and revenue compare to its market cap?
ITT fundamental statistics
Market Cap	US$5.61b
Earnings (TTM)	US$303.40m
Revenue (TTM)	US$2.79b

18.5x

P/E Ratio

2.0x

P/S Ratio

Is ITT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITT income statement (TTM)
Revenue	US$2.79b
Cost of Revenue	US$1.90b
Gross Profit	US$888.90m
Other Expenses	US$585.50m
Earnings	US$303.40m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.63
Gross Margin	31.83%
Net Profit Margin	10.86%
Debt/Equity Ratio	23.8%

How did ITT perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

26%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ITT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ITT. This is calculated by dividing ITT's market cap by their current preferred multiple.
What is ITT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.61b

ITT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	10.3x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does ITT's PE Ratio compare to its peers?

ITT PE Ratio vs Peers

The above table shows the PE ratio for ITT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	65.3x
DCI Donaldson Company	18.7x	9.5%	US$5.9b
GTLS Chart Industries	131.3x	39.5%	US$5.7b
ROLL RBC Bearings	98.7x	53.3%	US$5.2b
CR Crane Holdings	12.6x	9.3%	US$4.8b
ITT ITT	18.5x	11.8%	US$5.6b

Forward PE

Price-To-Earnings vs Peers: ITT is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (65.3x).

Price to Earnings Ratio vs Industry

How does ITT's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: ITT is good value based on its Price-To-Earnings Ratio (18.5x) compared to the US Machinery industry average (20.5x)

Price to Earnings Ratio vs Fair Ratio

What is ITT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ITT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.5x
Fair PE Ratio	19.6x

Price-To-Earnings vs Fair Ratio: ITT is good value based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

Share Price vs Fair Value

What is the Fair Price of ITT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ITT ($67.22) is trading below our estimate of fair value ($161.68)

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

Price to Earnings Growth Ratio

PEG Ratio: ITT is poor value based on its PEG Ratio (1.6x)

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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ITT's forecast earnings growth (11.8% per year) is above the savings rate (1.9%).

Earnings vs Market: ITT's earnings (11.8% per year) are forecast to grow slower than the US market (13.7% per year).

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

Revenue vs Market: ITT's revenue (6.2% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: ITT's revenue (6.2% 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 (18.9%).

Discover growth companies

Past Performance

How has ITT performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ITT has a high level of non-cash earnings.

Growing Profit Margin: ITT's current net profit margins (10.9%) are higher than last year (2.8%).

Past Earnings Growth Analysis

Earnings Trend: ITT's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: ITT's earnings growth over the past year (327.5%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: ITT earnings growth over the past year (327.5%) exceeded the Machinery industry 24%.

Return on Equity

High ROE: ITT's Return on Equity (14.7%) is considered low.

Discover strong past performing companies

Financial Health

How is ITT's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ITT's short term assets ($1.9B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: ITT's short term assets ($1.9B) exceed its long term liabilities ($393.1M).

Debt to Equity History and Analysis

Debt Level: ITT has more cash than its total debt.

Reducing Debt: ITT's debt to equity ratio has increased from 14.5% to 23.8% over the past 5 years.

Debt Coverage: ITT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if ITT's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.57%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ITT's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: ITT's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (4.25%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.1%), ITT's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: ITT is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

3.4yrs

Average management tenure

CEO

Luca Savi (55 yo)

3.83yrs

Tenure

US$7,682,129

Compensation

Mr. Luca Savi serves as an Independent Director at MSA Safety Incorporated since June 24, 2021. He serves as a Director and Chief Executive officer of ITT Inc since January 1, 2019 and serves as its Presid...

CEO Compensation Analysis

Compensation vs Market: Luca's total compensation ($USD7.68M) is about average for companies of similar size in the US market ($USD8.21M).

Compensation vs Earnings: Luca's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: ITT's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: ITT's board of directors are considered experienced (6.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: ITT 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/04/02
Annual Earnings	2021/12/31