ITT (ITT) AI Stock Analysis

• Market Cap: $14.16B
• Dividend Yield: 0.76%
• Average Volume (3M): 384.57K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.38
• Revenue Growth: 6.69%
• EPS Growth: 21.44%
• Country: US
• Employees: 11,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.64
• Shares Outstanding: 78,000,000
• 10 Day Avg. Volume: 490,532
• 30 Day Avg. Volume: 384,570
• PEG Ratio: 0.83
• Price to Book (P/B): 4.23
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 26.67
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 10.24
• Enterprise Value/Ebitda: 15.67
• 1Y Price Target: $195.29
• Price Target Upside: 7.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 79 Outperform
• Price Target: $195.00 ▲(7.64% Upside)

ITT's overall stock score of 79 reflects its strong financial performance and positive earnings call results, which highlight record orders and revenue growth. The technical analysis indicates a positive trend, although the valuation suggests a premium price. The company's strategic achievements and increased EPS outlook further bolster its position.

Positive Factors

Revenue Growth

ITT's consistent revenue growth demonstrates its strong market position and ability to capture demand across its segments, ensuring long-term financial stability.

Cash Flow Generation

Strong cash flow generation underscores ITT's efficient operations and ability to reinvest in growth opportunities, enhancing its competitive edge.

Strategic Acquisitions

Strategic acquisitions are expanding ITT's capabilities and market reach, contributing to sustainable growth and reinforcing its industry leadership.

Negative Factors

Foreign Currency Impact

Currency fluctuations can impact profitability, posing a risk to ITT's financial performance, especially in international markets.

M&A Costs

Temporary M&A costs can strain margins, affecting short-term profitability, though they may lead to long-term strategic benefits.

Project Delays

Project delays can disrupt revenue timing and operational efficiency, potentially impacting customer satisfaction and future business.

ITT Business Overview & Revenue Model

Company Description

ITT Inc. is a diversified global manufacturing company that operates in three primary segments: Industrial Process, Motion Technologies, and Connect and Control Technologies. The company designs and manufactures a wide range of products, including pumps, valves, and connectors, which are used in various applications such as water and wastewater treatment, oil and gas, aerospace, and transportation. ITT is known for its engineering expertise and innovation, providing solutions that enhance efficiency and safety across multiple industries.

How the Company Makes Money

ITT generates revenue through the sale of its diverse range of products and solutions across its three business segments. The Industrial Process segment contributes significantly by providing pumps and valves for industrial applications, while the Motion Technologies segment focuses on hydraulic systems and other motion control products. The Connect and Control Technologies segment offers advanced connectors and sensors for critical applications. Key revenue streams include direct sales to end-users, partnerships with distributors, and contracts with large corporations and government entities. Additionally, ITT benefits from long-term contracts and repeat business, particularly in sectors like oil and gas and water management, which provide stable income. Strategic partnerships and a strong focus on innovation also play a crucial role in enhancing its competitive position and driving earnings growth.

ITT Financial Statement Overview

Summary

ITT demonstrates robust financial performance with consistent revenue growth, healthy profit margins, and efficient cash management. The company maintains a strong balance sheet with conservative leverage and impressive return on equity. Potential risks include monitoring the decrease in stockholders' equity, but overall ITT is well-positioned for continued financial success.

Income Statement

ITT demonstrates robust financial performance with a consistent revenue growth trajectory, evidenced by a 12.67% increase in revenue from 2023 to 2024 and further growth in TTM. Gross Profit and EBIT margins are healthy at 34.96% and 18.75% respectively for TTM, indicating efficient cost management and operational efficiency. The net profit margin remains strong at 13.99%, underscoring profitability. Overall, ITT's income statement reflects strong growth and profitability in the industrial machinery sector.

Balance Sheet

ITT's balance sheet is solid with an equity ratio of 50.97%, demonstrating a stable financial structure. The debt-to-equity ratio stands at 0.18, indicating conservative leverage. The return on equity is impressive at 20.24%, reflecting efficient use of equity. The company's assets are well managed, with liabilities under control. However, the substantial cash reserves and low net debt indicate a strong liquidity position, though stockholders' equity has slightly decreased, necessitating watchful monitoring.

Cash Flow

ITT's cash flow statement shows strong financial health with a free cash flow growth rate of 11.28% from 2024 to TTM. The operating cash flow to net income ratio is 1.19, indicating effective conversion of income to cash. Additionally, the free cash flow to net income ratio of 0.94 further supports the company's capability to generate cash. ITT's ability to maintain positive free cash flow while investing in capital expenditure highlights efficient cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.70B	3.63B	3.28B	2.99B	2.77B	2.48B
Gross Profit	1.29B	1.25B	1.11B	922.30M	899.50M	782.20M
EBITDA	845.30M	821.50M	647.90M	580.10M	521.60M	433.50M
Net Income	517.50M	518.30M	410.50M	367.00M	316.30M	72.50M
Balance Sheet
Total Assets	5.02B	4.71B	3.93B	3.78B	3.57B	4.28B
Cash, Cash Equivalents and Short-Term Investments	467.90M	439.30M	489.20M	561.20M	647.50M	859.80M
Total Debt	1.16B	756.50M	285.20M	536.60M	291.60M	212.00M
Total Liabilities	2.45B	1.94B	1.39B	1.52B	1.33B	2.15B
Stockholders Equity	2.56B	2.76B	2.53B	2.25B	2.23B	2.13B
Cash Flow
Free Cash Flow	487.60M	438.20M	430.10M	173.90M	-96.00M	373.20M
Operating Cash Flow	613.90M	562.60M	537.70M	277.80M	-7.60M	436.90M
Investing Cash Flow	-414.30M	-817.90M	-181.00M	-255.10M	-82.30M	-65.80M
Financing Cash Flow	-187.50M	234.90M	-432.30M	-83.30M	-99.80M	-158.60M

ITT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITT, the sentiment is Positive. The current price of 181.16 is above the 20-day moving average (MA) of 178.30, above the 50-day MA of 171.58, and above the 200-day MA of 150.68, indicating a bullish trend. The MACD of 2.53 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 75.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITT.

ITT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	79 Outperform	$14.16B	28.54	20.17%	0.76%	6.69%	21.44%
NDSN	75 Outperform	$13.12B	29.34	15.59%	1.35%	4.49%	-3.33%
GGG	74 Outperform	$14.04B	30.05	19.62%	1.27%	0.75%	-2.74%
IEX	73 Outperform	$12.57B	26.96	12.25%	1.68%	4.73%	-19.15%
CR	70 Outperform	$10.35B	33.95	18.23%	0.50%	3.01%	27.13%
GNRC	69 Neutral	$9.72B	27.52	14.59%	―	9.69%	54.29%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ITT Corporate Events

ITT Elects Mary Laschinger to Board of Directors

On May 21, 2025, ITT Inc. announced the election of Mary Laschinger to its Board of Directors, following the annual meeting of shareholders. Laschinger, with her extensive experience in industrial companies and previous leadership roles, is expected to bring valuable expertise to ITT’s operations. Her appointment is part of ITT’s ongoing board refreshment strategy aimed at strengthening its leadership. Additionally, the company held its annual meeting where ten directors were elected, and key proposals, including the ratification of Deloitte & Touche LLP as the independent registered public accounting firm, were approved.