Itt Inc.

ITT

Pumps & Pumping Equipment

Mkt Cap

$10.96B

PE

26.00

Debt

$553.2M

Cash

$423M

EV

$11.09B

FCF

$431.1M

Market Cap

$10.96B

P/E Ratio

26.00

Debt

$553.2M

Cash

$423M

EV

$11.09B

FCF

$431.1M

Charts data: {"Earnings":[{"time":"2014-12-30","value":184500000},{"time":"2015-12-30","value":351600000},{"time":"2016-12-30","value":186100000},{"time":"2017-12-30","value":113300000},{"time":"2018-12-30","value":333700000},{"time":"2019-12-30","value":325100000},{"time":"2020-12-30","value":72500000},{"time":"2021-12-30","value":316300000},{"time":"2022-12-30","value":367000000},{"time":"2023-12-30","value":410500000}],"Sales":[{"time":"2014-12-30","value":2654600000},{"time":"2015-12-30","value":2485600000},{"time":"2016-12-30","value":2405400000},{"time":"2017-12-30","value":2585300000},{"time":"2018-12-30","value":2745100000},{"time":"2019-12-30","value":2846400000},{"time":"2020-12-30","value":2477800000},{"time":"2021-12-30","value":2765000000},{"time":"2022-12-30","value":2987700000},{"time":"2023-12-30","value":3283000000}],"Net Margins":[{"time":"2014-12-30","value":0.0695019965343178},{"time":"2015-12-30","value":0.14145477953009333},{"time":"2016-12-30","value":0.07736758959008896},{"time":"2017-12-30","value":0.043824701195219126},{"time":"2018-12-30","value":0.12156205602710284},{"time":"2019-12-30","value":0.11421444631815626},{"time":"2020-12-30","value":0.029259827266123174},{"time":"2021-12-30","value":0.11439421338155516},{"time":"2022-12-30","value":0.12283696488937978},{"time":"2023-12-30","value":0.12503807493146513}],"Assets":[{"time":"2014-12-30","value":3631500000},{"time":"2015-12-30","value":3723600000},{"time":"2016-12-30","value":3601700000},{"time":"2017-12-30","value":3700200000},{"time":"2018-12-30","value":3846800000},{"time":"2019-12-30","value":4107700000},{"time":"2020-12-30","value":4277600000},{"time":"2021-12-30","value":3565400000},{"time":"2022-12-30","value":3780300000},{"time":"2023-12-30","value":3932600000}],"Stockholders Equity":[{"time":"2014-12-30","value":1220300000},{"time":"2015-12-30","value":1365400000},{"time":"2016-12-30","value":1428400000},{"time":"2017-12-30","value":1597800000},{"time":"2018-12-30","value":1824900000},{"time":"2019-12-30","value":2077800000},{"time":"2020-12-30","value":2127900000},{"time":"2021-12-30","value":2230700000},{"time":"2022-12-30","value":2257400000},{"time":"2023-12-30","value":2539100000}],"ROE":[{"time":"2014-12-30","value":0.1511923297549783},{"time":"2015-12-30","value":0.2575069576680826},{"time":"2016-12-30","value":0.13028563427611314},{"time":"2017-12-30","value":0.07091000125172112},{"time":"2018-12-30","value":0.18285933475806893},{"time":"2019-12-30","value":0.15646356723457502},{"time":"2020-12-30","value":0.03407114996005452},{"time":"2021-12-30","value":0.14179405567759},{"time":"2022-12-30","value":0.16257641534508727},{"time":"2023-12-30","value":0.16167145839076838}],"ROA":[{"time":"2014-12-30","value":0.07335811648079306},{"time":"2015-12-30","value":0.10207863358040606},{"time":"2016-12-30","value":0.07188272204792182},{"time":"2017-12-30","value":0.0836981784768391},{"time":"2018-12-30","value":0.10328064885099303},{"time":"2019-12-30","value":0.10015337049930619},{"time":"2020-12-30","value":0.05295025247802506},{"time":"2021-12-30","value":0.14278902787905987},{"time":"2022-12-30","value":0.12379969843663201},{"time":"2023-12-30","value":0.13431317703300616}]}

ITT Inc. manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets worldwide. The company operates in 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. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in industries, such as chemical, energy, mining, and other industrial process markets. The Connect & Control Technologies segment designs and manufactures a range of engineered connectors and specialized control components for critical applications supporting various markets, including aerospace and defense, industrial, transportation, medical, and energy. This segment provides connector products, including electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies; and control products consists of highly engineered actuation, flow control, energy absorption, environmental control, and composite component solutions for the aerospace, defense, and industrial markets. ITT Inc. was incorporated in 1920 and is headquartered in Stamford, Connecticut.

Sector

10-Q
9/30/23
10-Q
7/1/23
10-Q
4/1/23
10-K
12/31/22
10-Q
10/1/22
10-Q
7/2/22
10-Q
4/2/22
10-K
12/31/21
10-Q
10/2/21
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7/3/21
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3/31/21
10-K
12/31/20
10-Q
9/30/20
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6/30/20
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3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Itt Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$431.1M	$469.2M	$508.7M	$549.3M	$590.8M	$632.9M	$675.4M	$717.8M	$759.8M	$801M	$841.1M	$8.411B
DCF		$408M	$384.6M	$361.2M	$337.8M	$314.7M	$292M	$269.8M	$248.4M	$227.7M	$207.9M	$2.079B
Value	$5.131B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 2.4%

Earnings Stability 1.4%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	14%	7.7%	4.4%	12%	11%	2.9%	11%	12%	13%	12%
ROA	10%	7.2%	8.4%	10%	10%	5.3%	14%	12%	13%	13%
ROE	26%	13%	7.1%	18%	16%	3.4%	14%	16%	16%	16%

What is the average Net Margin?

The average Net Margin over the past 5 years is +10.46%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.37%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.95%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.9%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +13.99%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.06%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	1.74	1.67	1.28	0.45	0.37	0.32	-2.14	2.64	0.45	1.28
Debt Equity	0.18	0.15	0.11	0.07	0.05	0.06	0.09	0.20	0.08	0.21
MIN
Graham Stability	-	-	47%	100%	100%	28%	100%	100%	100%	28%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.28.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.12.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.28.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	4.5%	3.6%	9.8%	9.9%	1.5%
Net Income	12%	4.2%	78%	12%	5.9%
Stockholders Equity	8.6%	6.8%	6.1%	12%	-0.56%
FCF	19%	9.3%	5%	150%	16%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +3.64%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.47%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +4.23%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +5.88%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.83%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.56%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +9.27%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +16.21%.