ITT Stock Overview
ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$67.50|
|52 Week High||US$105.54|
|52 Week Low||US$64.09|
|1 Month Change||-6.30%|
|3 Month Change||-11.24%|
|1 Year Change||-28.10%|
|3 Year Change||3.27%|
|5 Year Change||66.30%|
|Change since IPO||12.74%|
Recent News & Updates
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.
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...
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...
|ITT||US Machinery||US Market|
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.
|ITT Average Weekly Movement||5.1%|
|Machinery Industry Average Movement||6.2%|
|Market Average Movement||8.1%|
|10% most volatile stocks in US Market||16.9%|
|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
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
|ITT fundamental statistics|
Is ITT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|ITT income statement (TTM)|
|Cost of Revenue||US$1.90b|
Last Reported Earnings
Apr 02, 2022
Next Earnings Date
|Earnings per share (EPS)||3.63|
|Net Profit Margin||10.86%|
How did ITT perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Is ITT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is ITT's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does ITT's PE Ratio compare to its peers?
|ITT PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
DCI Donaldson Company
GTLS Chart Industries
ROLL RBC Bearings
CR Crane Holdings
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.
|Current PE Ratio||18.6x|
|Fair PE Ratio||19.6x|
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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How is ITT forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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%).
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How has ITT performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
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.
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How is ITT's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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 ($393.1M).
Debt to Equity History and Analysis
Debt Level: ITT has more cash than its total debt.
Reducing Debt: ITT's debt to equity ratio has increased from 14.5% to 23.8% over the past 5 years.
Debt Coverage: ITT's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if ITT's interest payments on its debt are well covered by EBIT.
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What is ITT current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ITT's dividend (1.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.61%).
High Dividend: ITT's dividend (1.56%) is low compared to the top 25% of dividend payers in the US market (4.3%).
Stability and Growth of Payments
Stable Dividend: ITT's dividend payments have been volatile in the past 10 years.
Growing Dividend: ITT's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (26.1%), ITT's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: ITT is paying a dividend but the company has no free cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Luca Savi (56 yo)
Mr. Luca Savi serves as an Independent Director at MSA Safety Incorporated since June 24, 2021. He serves as a Director and Chief Executive officer of ITT Inc since January 1, 2019 and serves as its Presid...
CEO Compensation Analysis
Compensation vs Market: Luca's total compensation ($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.
Experienced Management: ITT's management team is considered experienced (3.4 years average tenure).
Experienced Board: ITT's board of directors are considered experienced (6.7 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ITT Inc.'s employee growth, exchange listings and data sources
- 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
- ITT Inc.
- 1133 Westchester Avenue
- White Plains
- New York
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/07/01 00:00|
|End of Day Share Price||2022/07/01 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.