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ITT

ITT NYSE:ITT Stock Report

Last Price

US$67.50

Market Cap

US$5.6b

7D

-3.0%

1Y

-28.1%

Updated

01 Jul, 2022

Data

Company Financials +
ITT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends1/6

ITT Stock Overview

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

ITT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ITT
Historical stock prices
Current Share PriceUS$67.50
52 Week HighUS$105.54
52 Week LowUS$64.09
Beta1.5
1 Month Change-6.30%
3 Month Change-11.24%
1 Year Change-28.10%
3 Year Change3.27%
5 Year Change66.30%
Change since IPO12.74%

Recent News & Updates

Jul 02

ITT: Not Really Special At This Time

ITT Inc. has generally performed well over the years, even though the COVID-19 pandemic hurt the company for a time. Growth on the top line continues this year, but profitability is suffering. Management has positive expectations for 2022, but shares don't look cheap enough to make it a compelling prospect right now. A great feeling is finding a company that is often under-appreciated and that makes for a great investment prospect. Sadly, not every company that you examine will make for a strong opportunity. Some firms just are bound to be mediocre. An example of one such business can be seen by looking at ITT Inc (ITT). Between its recent financial performance and some additional pain the company is experiencing this year, fundamentals could be better. It would be a different story if shares of the company were trading on the cheap. But that also does not appear to be the case. Given all of this, why all the company is far from a bad prospect, it certainly is not anything special. More likely than not, investors can find more appealing prospects on the market. A diverse engineering firm The best way to understand the degree to which ITT Inc is a diversified company is to analyze it based on its three primary segments. The first of these is known as Motion Technologies. According to management, this unit operates as a global manufacturer of highly engineered and durable brake pads, shock absorbers, and damping technologies for the automotive and rail markets. The company has a variety of well-known brands under its belt such as ITT Friction Technologies, Axtone, KONI, Galt, and others. Products sold under this segment include those dedicated to both the traditional internal combustion market and to the electric vehicle space. Many of its products are sold to original equipment dealers, as well as to independent aftermarket networks. In addition to catering to regular consumer vehicles, some of its parts, such as those under its KONI brand, are made available for car and racing enthusiasts who modified their cars for increased handling performance and comfort. During its 2021 fiscal year, this segment accounted for 49.5% of the firm's revenue and for 55.3% of its profits. The next largest segment is referred to as Industrial Process. Through this, the company produces and sells industrial pumps, valves, and monitoring and control systems for the energy, chemical, petrochemical, pharmaceutical, general industrial, mining, pulp and paper, food and beverage, and other related markets. Naturally, the segment also provides aftermarket services for customers who purchase these products. Last year, this segment was responsible for 30.5% of the company's revenue and for 27.2% of its profits. And finally, we have the Connect & Control Technologies segment. Representing just 20.1% of the company's revenue and 17.5% of its profits, it is the smallest of the company's three key segments. Through this, the business sells harsh-environment connectors and critical energy absorption and flow control components. These are largely marketed to the aerospace, defense, and industrial markets. Author - SEC EDGAR Data Top line performance achieved by ITT Inc has generally improved year after year. For instance, between 2017 and 2019, revenue at the company rose from $2.59 billion to $2.85 billion. Due to the COVID-19 pandemic, revenue dropped to $2.48 billion in 2020 before rebounding some to $2.77 billion last year. While the company did benefit from foreign currency fluctuations to the tune of $48.1 million for the year, organic revenue increased by 9.6% thanks to both its Motion Technologies and Connect & Control Technologies segments. The company benefited tremendously from attractive growth in its Friction business to the tune of 21%, while its Wolverine business grew by 17% thanks to strength in the demand for sealings. Another strong point was the growth the company saw in connector sales, with revenue rising by 20% year over year. The firm's improvement has continued into the current fiscal year, with revenue in the first quarter of 2022 coming in at $726.2 million. That represents an increase of 4% compared to the $698.4 million generated the same quarter one year earlier. The trend for profitability for the business has been a bit more volatile in recent years. After rising from $115 million in 2017 to $332.4 million, net income flatlined for two years before dropping to $68.5 million in 2020. Then, in 2021, profits rose back up to $314.8 million. Other profitability metrics have been similarly volatile. Operating cash flow did manage to rise from $247.2 million in 2017 to $435.9 million in 2020. But in 2021, the company saw cash flow plunge to negative $8.4 million. Even if we adjust for changes in working capital, the metric would have worsened, but the downturn came earlier. After peaking at $458.5 million in 2019, the metric dropped to $385 million in 2020 before plunging to $83.6 million last year. Unfortunately, weakness on the company's bottom line has continued into the 2022 fiscal year. Net income in the first quarter came in at $74.8 million. That compares to the $86.2 million generated the same time one year earlier. Operating cash flow went from a positive $70.8 million to a negative $2.7 million. But if we adjust for changes in working capital, it would have dropped more modestly from $124.3 million to $116 million. Also experiencing a decline was EBITDA. It dropped from $140.8 million in the first quarter of 2021 to $121.9 million the same time this year. Author - SEC EDGAR Data When it comes to the 2022 fiscal year, management expects revenue to continue climbing. Sales should rise by between 7% and 9%. At the midpoint, this would translate to revenue of $2.99 billion. Earnings per share are expected to be between $4.07 and $4.50. At the midpoint, this should translate to net income of $357.8 million. Management has not provided any guidance when it comes to operating cash flow. My own estimate has the number coming in at $398.6 million, while I believe that EBITDA should be somewhere around $476.6 million. These estimates are based on an extrapolation from the first quarter results the company experienced.

Jun 25
Is ITT Inc. (NYSE:ITT) Potentially Undervalued?

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%?

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...

Shareholder Returns

ITTUS MachineryUS Market
7D-3.0%-2.6%-2.5%
1Y-28.1%-22.5%-21.2%

Return vs Industry: ITT underperformed the US Machinery industry which returned -22.9% over the past year.

Return vs Market: ITT underperformed the US Market which returned -21.7% over the past year.

Price Volatility

Is ITT's price volatile compared to industry and market?
ITT volatility
ITT Average Weekly Movement5.1%
Machinery Industry Average Movement6.2%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
19209,900Luca Savihttps://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 CapUS$5.64b
Earnings (TTM)US$303.40m
Revenue (TTM)US$2.79b

18.6x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ITT income statement (TTM)
RevenueUS$2.79b
Cost of RevenueUS$1.90b
Gross ProfitUS$888.90m
Other ExpensesUS$585.50m
EarningsUS$303.40m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.63
Gross Margin31.83%
Net Profit Margin10.86%
Debt/Equity Ratio23.8%

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.

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/Revenue2x
Enterprise Value/EBITDA10.4x
PEG Ratio1.6x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average65.3x
DCI Donaldson Company
18.9x9.5%US$6.0b
GTLS Chart Industries
129.3x39.5%US$5.6b
ROLL RBC Bearings
100.2x53.3%US$5.3b
CR Crane Holdings
12.8x9.3%US$4.9b
ITT ITT
18.6x11.8%US$5.6b

Price-To-Earnings vs Peers: ITT is good value based on its Price-To-Earnings Ratio (18.6x) 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 (18.6x) compared to the US Machinery industry average (20.2x)


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 Ratio18.6x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: ITT is good value based on its Price-To-Earnings Ratio (18.6x) 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 ($67.5) is trading below our estimate of fair value ($170.13)

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 (13.6% 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 (8.2% 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 22.7%.


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


1.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ITT's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: ITT's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.3%).


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 (56 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 ($USD7.68M) is about average for companies of similar size in the US market ($USD8.30M).

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.


Top Shareholders

Company Information

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


Key Information

  • Name: ITT Inc.
  • Ticker: ITT
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$5.636b
  • Shares outstanding: 83.50m
  • Website: https://www.itt.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/01 00:00
End of Day Share Price2022/07/01 00:00
Earnings2022/04/02
Annual Earnings2021/12/31


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.