ITT Inc.
ITT Inc. Fundamental Analysis
ITT Inc. (ITT) shows moderate financial fundamentals with a PE ratio of 33.26, profit margin of 12.39%, and ROE of 16.15%. The company generates $4.2B in annual revenue with strong year-over-year growth of 10.59%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ITT's fundamental strength across five key dimensions:
Efficiency Score
WeakITT struggles to generate sufficient returns from assets.
Valuation Score
WeakITT trades at a premium to fair value.
Growth Score
ExcellentITT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentITT maintains a strong and stable balance sheet.
Profitability Score
ModerateITT maintains healthy but balanced margins.
Key Financial Metrics
Is ITT Expensive or Cheap?
P/E Ratio
ITT trades at 33.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ITT's PEG of 22.36 indicates potential overvaluation.
Price to Book
The market values ITT Inc. at 3.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.73 times EBITDA. This signals the market has high growth expectations.
How Well Does ITT Make Money?
Net Profit Margin
For every $100 in sales, ITT Inc. keeps $12.39 as profit after all expenses.
Operating Margin
Core operations generate 17.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.15 in profit for every $100 of shareholder equity.
ROA
ITT Inc. generates $7.73 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ITT Inc. produces operating cash flow of $721.10M, showing steady but balanced cash generation.
Free Cash Flow
ITT Inc. generates strong free cash flow of $590.31M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.86 in free cash annually.
FCF Yield
ITT converts 3.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How ITT Stacks Against Its Sector Peers
| Metric | ITT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.26 | 26.49 | Worse (Expensive) |
| ROE | 16.15% | 1307.00% | Weak |
| Net Margin | 12.39% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.23 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.58 | 10.48 | Strong Liquidity |
| ROA | 7.73% | -1549793.00% (disorted) | Weak |
ITT outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ITT Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.75%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
70.93%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
68.20%
Industry Style: Cyclical, Value, Infrastructure
High Growth