Itt Inc.

Industrials
Fluid Controls
www.itt.com

Earnings Score
Moat Score
Safety Score

Market Cap $12.69B
PE 26
Debt $830.40M
Cash $460.90M
EV $13.06B
FCF $383.20M

Earnings

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Sales & Net Margins

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Earnings	$482.80M
EBIT	$634.90M
ROE	18%
ROA	13%
FCF	$383.20M
Equity	$2.76B
Growth Stability	28%
PE	26.29
PEG	0.41
PB	4.61
P/FCF	33.12
P/S	3.59
Price/Cash	0.04
Debt/Equity	0.3
Debt/FCF	2.17
Net Margins	14%
Gross Margins	34%
Op. Margins	18%
Earnings CAGR	5%
Sales Growth YoY	8%
Sales Growth QoQ	-2%
Sales CAGR	0%
FCF CAGR	6%
Equity CAGR	7%
Earnings Stability	0.06
Earnings Growth YoY	45%
Earnings Growth QoQ	35%
Earnings CAGR 5Y	64%

Sales CAGR 5Y	31%
FCF CAGR 5Y	26%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	72%
Equity CAGR 3Y	11%
Market Cap	$12.69B
Revenue	$3.53B
Dividend Yield	1%
Payout Ratio	21%
Assets	$4.94B
Total Debt	$830.40M
Cash	$460.90M
Shares Outstanding	81.5M
EV	13.06B
Earnings Score	7%
Moat Score	94%
Safety Score	65%
Final Score	55%
Working Capital	736.1M
Current Ratio	1.58
Gross Profit	$1.22B
Shares Growth 3y	-1%
Equity Growth QoQ	6%
Equity Growth YoY	14%

Assets & ROA

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Stockholders Equity & ROE

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ITT is a diversified industrial conglomerate with nearly $3 billion in sales. After the spinoffs of Xylem and Exelis in 2011, the company's products primarily include brake pads, shock absorbers, pumps, valves, connectors, and switches. Its customers include original-equipment and Tier 1 manufacturers as well as aftermarket customers. ITT uses a network of approximately 700 independent distributors, which accounts for about one third of overall revenue. Nearly three fourths of the company's sales are made in North America and Europe. ITT's primary end markets include automotive, rail, oil and gas, aerospace and defense, chemical, mining, and general industrial.

SEC Filings

Direct access to Itt Inc. (ITT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-Q Apr 02

Sector Comparison

How does Itt Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Itt Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 5%

Stability 6%

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Itt Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Itt Inc..

Years

Calculation mode

= $5.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$383M	$405M	$428M	$452M	$477M	$504M	$533M	$563M	$595M	$629M	$664M	$6.6B
DCF		$368M	$354M	$340M	$326M	$313M	$301M	$289M	$278M	$267M	$256M	$2.6B
Value	$5.7B

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	14%	8%	4%	12%	11%	3%	11%	12%	13%	14%
ROA	-	10%	7%	8%	10%	10%	5%	14%	12%	13%	13%
ROE	-	26%	13%	7%	18%	16%	3%	14%	16%	16%	18%

Good Net Margins (14.48%)

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

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.74	1.67	1.28	0.45	0.37	0.32	-2.14	2.64	0.45	2.17
Debt over Equity	0.01	0.18	0.15	0.11	0.07	0.05	0.06	0.09	0.2	0.08	0.3
Growth Stability	-	-	-	47%	100%	100%	28%	100%	100%	100%	28%

Neutral Debt/FCF ratio (2.17)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.3)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (28%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-6%	-3%	7%	6%	4%	-13%	12%	8%	10%	31%
Earnings YoY growth	-	91%	-47%	-39%	195%	-3%	-78%	336%	16%	12%	64%
Equity YoY growth	-	12%	5%	12%	14%	14%	2%	5%	1%	12%	6%
FCF YoY growth	-	14%	-10%	4%	106%	-4%	40%	-126%	-280%	148%	26%