ITT (ITT) AI Stock Analysis

• Market Cap: $17.81B
• Dividend Yield: 0.79%
• Average Volume (3M): 953.01K
• Price to Earnings (P/E): 33.9
• Beta (1Y): 1.35
• Revenue Growth: 8.01%
• EPS Growth: 2.67%
• Country: US
• Employees: 11,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.85
• Shares Outstanding: 86,040,016
• 10 Day Avg. Volume: 665,273
• 30 Day Avg. Volume: 953,015
• PEG Ratio: -9.42
• Price to Book (P/B): 3.37
• Price to Sales (P/S): 3.50
• P/FCF Ratio: 25.16
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 12.32
• Enterprise Value/Ebitda: 20.35
• 1Y Price Target: $232.29
• Price Target Upside: 11.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $230.00 ▲(10.12% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by strong financial performance (steady growth, low leverage, solid returns and cash generation) and supportive earnings-call guidance for continued growth and margin expansion. Technicals confirm an uptrend but show stretched momentum (high RSI), while valuation is the main restraint due to a higher P/E and low dividend yield.

Positive Factors

Conservative balance sheet & ratings

ITT's low trailing leverage, sizable equity base and strong ROE provide durable financial flexibility. Investment-grade ratings and conservative capital structure support continued M&A optionality, dividend growth and resilience through industrial cycles, reducing refinancing risk over 2–6 months.

Robust free cash flow and conversion

Sustained high FCF and cash conversion enable repeatable capital returns, deleveraging and funding of strategic deals. Growing free cash flow supports the company’s buybacks and dividend increases and underpins long-term earnings quality despite periodic working-capital swings.

Accretive M&A improving margins

Recent acquisitions have demonstrably increased scale and margins; management expects SPX Flow to be accretive with multi-year synergies. This M&A-driven margin expansion can structurally shift portfolio mix toward higher-growth, higher‑margin industrial process offerings.

Negative Factors

SPX Flow integration & equity dilution risk

Large transaction and recent equity raise increase near-term execution and capital-structure risk. Integration complexity, deferred accounting changes and short-term share count dilution can pressure EPS and distract management, creating multi-quarter uncertainty for realized synergies.

Historical cash-flow volatility

Although FCF is strong recently, historic swings (e.g., negative 2021 conversion) show working-capital or one-time impacts can rapidly reverse cash generation. In downside cycles this variability can impair capacity to fund dividends, buybacks or rapid deleveraging after acquisitions.

Cyclicality and order lumpiness

Exposure to auto markets and large engineered-project timing makes revenue and margins uneven across periods. Lumpy orders and a slightly weaker IP funnel increase forecasting risk and can mute sustained margin progress if end markets soften or large project awards delay.

ITT Business Overview & Revenue Model

Company Description

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. The Industrial Process segment designs and manufactures industrial pumps, valves, and plant optimization and remote monitoring systems and services; and centrifugal and twin screw positive displacement pumps, as well as 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's connector product portfolio includes electrical connectors, such as circular, rectangular, radio frequency, fiber optic, D-sub miniature, micro-miniature, and cable assemblies, as well as control products consist of actuators, valves, and pumps and switches for flow control applications; rate controls, seat recline locks, and elastomer isolators for aircraft interiors; elastomeric bearings for rotorcraft vibration isolation; heaters, hoses, and composite ducting for environmental control systems; and advanced composites for engine applications. ITT Inc. was incorporated in 1920 and is headquartered in White Plains, New York.

How the Company Makes Money

ITT generates revenue through several key streams, primarily by selling products across its three main business segments. The Industrial Process segment provides engineered solutions and products for fluid and thermal management, contributing significantly to the company's earnings. The Motion Technologies segment offers advanced braking systems and other components for the transportation and industrial markets, which also represent a substantial revenue source. Lastly, the Connect and Control Technologies segment provides specialized connectors and control systems for the aerospace and defense sectors. ITT benefits from strategic partnerships and collaborations with key clients in these industries, enhancing its market position and driving sales. Additionally, the company focuses on innovation and efficiency, allowing it to maintain competitive pricing and improve profit margins.

ITT Financial Statement Overview

Summary

Strong overall fundamentals with consistent revenue growth, healthy profitability, and a conservatively positioned balance sheet with very low leverage and solid ROE. Offsets include some TTM margin compression versus 2024 and historical cash-flow volatility (notably weak 2021 cash conversion) despite currently robust and improving free cash flow.

Income Statement

Revenue has grown consistently from 2021–2024, and is up again in TTM (Trailing-Twelve-Months), supporting a solid growth trajectory. Profitability is healthy: gross margin improved versus earlier years and remains strong in TTM, and operating profitability is consistently positive. The main offset is some margin compression in TTM versus 2024 (notably lower net margin and EBITDA margin), suggesting a slightly less favorable mix or cost pressure despite higher sales.

Balance Sheet

The balance sheet is conservatively positioned, with very low leverage in TTM (Trailing-Twelve-Months) and a sizable equity base. Returns on equity are strong and stable across recent periods, indicating good profit generation on shareholder capital. The key watch item is the year-to-year swing in debt levels (higher in 2024, much lower in TTM), which may reflect capital structure changes that can create comparability noise, though overall leverage remains low.

Cash Flow

Cash generation is a clear strength: operating cash flow and free cash flow are robust in TTM (Trailing-Twelve-Months), and free cash flow is growing. Free cash flow consistently represents a large portion of net income, which supports earnings quality. The drawback is variability over the cycle—2021 showed negative operating and free cash flow—indicating working-capital or one-time cash swings can materially impact cash conversion in weaker periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.94B	3.63B	3.28B	2.99B	2.77B
Gross Profit	1.39B	1.25B	1.11B	922.30M	899.50M
EBITDA	842.80M	821.50M	647.90M	580.10M	521.60M
Net Income	488.00M	518.30M	410.50M	367.00M	316.30M
Balance Sheet
Total Assets	6.31B	4.71B	3.93B	3.78B	3.57B
Cash, Cash Equivalents and Short-Term Investments	1.74B	439.30M	489.20M	561.20M	647.50M
Total Debt	927.20M	756.50M	285.20M	536.60M	291.60M
Total Liabilities	2.22B	1.94B	1.39B	1.52B	1.33B
Stockholders Equity	4.08B	2.76B	2.53B	2.25B	2.23B
Cash Flow
Free Cash Flow	547.50M	438.20M	430.10M	173.90M	-96.00M
Operating Cash Flow	668.80M	562.60M	537.70M	277.80M	-7.60M
Investing Cash Flow	-119.80M	-817.90M	-181.00M	-255.10M	-82.30M
Financing Cash Flow	728.90M	234.90M	-432.30M	-83.30M	-99.80M

ITT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 208.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 208.86 is above the 20-day moving average (MA) of 196.68, above the 50-day MA of 185.93, and above the 200-day MA of 172.06, indicating a bullish trend. The MACD of 6.11 indicates Negative momentum. The RSI at 66.95 is Neutral, neither overbought nor oversold. The STOCH value of 81.95 is Negative, 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
GGG	81 Outperform	$15.46B	30.31	19.92%	1.32%	2.85%	3.09%
ITT	78 Outperform	$17.81B	33.88	17.85%	0.79%	8.01%	2.67%
IEX	77 Outperform	$15.50B	32.48	12.35%	1.56%	7.09%	-2.29%
NDSN	76 Outperform	$16.45B	31.86	17.47%	1.64%	3.78%	4.85%
CR	65 Neutral	$11.77B	32.65	17.92%	0.49%	-0.37%	21.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	60 Neutral	$13.80B	88.04	6.22%	―	5.52%	9.03%

ITT Corporate Events

ITT Completes $1.31 Billion Stock Offering

On December 8, 2025, ITT Inc. announced an underwritten public offering of 7,000,000 shares of its common stock at $167.00 per share, raising approximately $1.31 billion. The proceeds are intended to fund part of the acquisition of SPX FLOW, Inc., or for general corporate purposes if the acquisition does not occur. The offering closed on December 10, 2025, with Goldman Sachs & Co. LLC and UBS Securities LLC acting as representatives of the underwriters. This move is expected to impact ITT’s financial strategy and market positioning, enhancing its growth prospects.

The most recent analyst rating on (ITT) stock is a Buy with a $186.00 price target. To see the full list of analyst forecasts on ITT stock, see the ITT Stock Forecast page.

ITT Announces Acquisition Agreement with LSF11 Redwood

On December 4, 2025, ITT Inc. entered into a Membership Interest Purchase Agreement to acquire 100% of the membership interests of LSF11 Redwood TopCo LLC. The completion of this acquisition is contingent upon customary closing conditions, including regulatory approvals. The acquisition’s impact on ITT’s operations and market positioning remains uncertain as it depends on the fulfillment of these conditions.

The most recent analyst rating on (ITT) stock is a Buy with a $215.00 price target. To see the full list of analyst forecasts on ITT stock, see the ITT Stock Forecast page.

ITT Announces Major Acquisition of SPX FLOW

On December 4, 2025, ITT Inc. announced a significant acquisition agreement to purchase SPX FLOW, Inc., a provider of engineered equipment and process technologies, for $4.775 billion. This strategic acquisition, involving both cash and stock considerations, is expected to enhance ITT’s market positioning in industrial, health, and nutrition sectors. Additionally, ITT’s Board of Directors appointed Nazzic S. Keene as the non-executive Chair, effective upon her election in 2026, succeeding Timothy H. Powers. This leadership transition is aimed at ensuring continuity and advancing ITT’s strategic growth.

The most recent analyst rating on (ITT) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on ITT stock, see the ITT Stock Forecast page.