ITT (ITT) AI Stock Analysis

• Market Cap: $14.12B
• Dividend Yield: 0.83%
• Average Volume (3M): 579.07K
• Price to Earnings (P/E): 30.1
• Beta (1Y): 1.34
• Revenue Growth: 8.01%
• EPS Growth: 2.67%
• Country: US
• Employees: 11,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.78
• Shares Outstanding: 78,000,000
• 10 Day Avg. Volume: 631,938
• 30 Day Avg. Volume: 579,072
• 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: 1.02
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 17.60
• 1Y Price Target: $215.50
• Price Target Upside: 27.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.66
• Revenue Forecast (FY): $3.89B

• Rating: 70 Outperform
• Price Target: $186.00 ▲(9.74% Upside)

ITT's overall stock score is driven by strong financial performance and a positive earnings call, highlighting significant revenue growth and strategic acquisitions. However, the technical analysis indicates bearish momentum, and the valuation suggests the stock may be overvalued. These factors balance the score, reflecting both the strengths and challenges facing ITT.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand across ITT's segments, reflecting effective market strategies and product offerings, which can drive sustainable long-term growth.

Successful Acquisitions

Strategic acquisitions enhance ITT's market position and capabilities, potentially leading to synergies and expanded market reach, supporting long-term competitive advantage.

Free Cash Flow Growth

Strong free cash flow growth enhances ITT's ability to invest in growth opportunities, reduce debt, and return capital to shareholders, supporting financial stability.

Negative Factors

Rising Debt Levels

Increased debt levels can limit financial flexibility and increase risk, potentially impacting ITT's ability to invest in growth and weather economic downturns.

Challenges in Auto Production

Declining auto production in key markets may impact ITT's Motion Technologies segment, potentially affecting revenue and profitability in the near to medium term.

Temporary Margin Impact

Acquisition-related amortization temporarily pressures margins, which may affect short-term profitability, although expected to resolve in the coming quarters.

ITT Business Overview & Revenue Model

Company Description

ITT Inc. is a diversified manufacturing company that operates in multiple sectors, including Industrial Process, Motion Technologies, and Connect and Control Technologies. The company provides a wide range of products and services, such as fluid management systems, critical components for aerospace and defense applications, and advanced connection technologies. ITT serves various markets, including oil and gas, transportation, and water treatment, leveraging its engineering expertise and innovative solutions to address customer needs.

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

ITT exhibits solid financial health with strong revenue and profit growth, efficient operations, and prudent financial management. The company maintains a stable balance sheet and generates healthy cash flows, though attention to cost control and debt levels could further enhance financial performance.

Income Statement

ITT demonstrates strong revenue growth with a TTM increase of 3.08% and consistent improvement in gross profit margin over the years. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in net profit margin from the previous year suggests room for improvement in cost management.

Balance Sheet

The company's debt-to-equity ratio is low at 0.157 TTM, reflecting prudent financial leverage. Return on equity remains robust at 17.96%, showcasing effective use of shareholder funds. The equity ratio indicates a stable financial structure, though a slight increase in debt levels warrants monitoring.

Cash Flow

ITT's free cash flow growth is impressive at 12.14% TTM, and the free cash flow to net income ratio is strong, indicating good cash generation relative to profits. The operating cash flow to net income ratio suggests efficient cash management, though there is room for improvement in converting income to cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.81B	3.63B	3.28B	2.99B	2.77B	2.48B
Gross Profit	1.33B	1.25B	1.11B	922.30M	899.50M	782.20M
EBITDA	820.30M	821.50M	647.90M	580.10M	521.60M	433.50M
Net Income	483.30M	518.30M	410.50M	367.00M	316.30M	72.50M
Balance Sheet
Total Assets	5.06B	4.71B	3.93B	3.78B	3.57B	4.28B
Cash, Cash Equivalents and Short-Term Investments	516.40M	439.30M	489.20M	561.20M	647.50M	859.80M
Total Debt	1.08B	756.50M	285.20M	536.60M	291.60M	212.00M
Total Liabilities	2.39B	1.94B	1.39B	1.52B	1.33B	2.15B
Stockholders Equity	2.66B	2.76B	2.53B	2.25B	2.23B	2.13B
Cash Flow
Free Cash Flow	546.80M	438.20M	430.10M	173.90M	-96.00M	373.20M
Operating Cash Flow	664.20M	562.60M	537.70M	277.80M	-7.60M	436.90M
Investing Cash Flow	-95.20M	-817.90M	-181.00M	-255.10M	-82.30M	-65.80M
Financing Cash Flow	-513.30M	234.90M	-432.30M	-83.30M	-99.80M	-158.60M

ITT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 169.49
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 169.49 is below the 20-day moving average (MA) of 182.48, below the 50-day MA of 180.14, and above the 200-day MA of 158.29, indicating a neutral trend. The MACD of -0.93 indicates Positive momentum. The RSI at 33.43 is Neutral, neither overbought nor oversold. The STOCH value of 46.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITT.

ITT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GGG	78 Outperform	$13.84B	28.52	19.45%	1.32%	2.85%	3.09%
IEX	75 Outperform	$13.29B	28.07	12.21%	1.60%	7.09%	-2.29%
NDSN	75 Outperform	$13.42B	30.03	15.59%	1.32%	4.49%	-3.33%
CR	71 Outperform	$10.82B	33.93	18.09%	0.49%	-0.37%	21.77%
ITT	70 Outperform	$14.12B	30.07	17.85%	0.83%	8.01%	2.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$9.53B	31.22	12.38%	―	5.52%	9.03%

ITT Corporate Events

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.

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.