ITT (ITT) AI Stock Analysis

• Market Cap: $14.41B
• Dividend Yield: 0.7%
• Average Volume (3M): 455.27K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 1.36
• 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: 372,664
• 30 Day Avg. Volume: 455,271
• 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: 1.00
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 10.82
• Enterprise Value/Ebitda: 17.60
• 1Y Price Target: $213.33
• Price Target Upside: 17.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.64
• Revenue Forecast (FY): $3.88B

• Rating: 77 Outperform
• Price Target: $222.00 ▲(21.97% Upside)

ITT's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth and strategic acquisitions. While technical indicators suggest potential short-term volatility, the company's solid market positioning and increased EPS guidance support a favorable long-term outlook. The high P/E ratio and modest dividend yield indicate a need for cautious valuation assessment.

Positive Factors

Revenue Growth

Strong revenue growth across all segments indicates robust demand and effective business strategies, supporting long-term expansion.

Free Cash Flow Generation

Significant free cash flow growth enhances financial flexibility, enabling ITT to invest in growth opportunities and manage debt effectively.

Successful Acquisitions

Successful acquisitions bolster ITT's market position and expand its product offerings, driving future revenue and market share growth.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin indicates potential inefficiencies in cost management, which could impact profitability if not addressed.

Challenges in Auto Production

Declining auto production in key regions may affect ITT's revenue from the Motion Technologies segment, posing a risk to growth.

Temporary Acquisition Amortization Impact

Amortization impacts from acquisitions can temporarily reduce margins, affecting short-term profitability and financial performance.

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 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: Neutral
• Last Price: 182.01
• 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 Neutral. The current price of 182.01 is below the 20-day moving average (MA) of 184.14, above the 50-day MA of 179.89, and above the 200-day MA of 156.34, indicating a neutral trend. The MACD of 2.03 indicates Positive momentum. The RSI at 48.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ITT.

ITT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITT	77 Outperform	$14.41B	30.69	17.85%	0.70%	8.01%	2.67%
CR	75 Outperform	$10.58B	33.19	18.09%	0.47%	-0.37%	21.77%
NDSN	75 Outperform	$12.80B	28.63	15.59%	1.39%	4.49%	-3.33%
IEX	75 Outperform	$12.31B	26.00	12.21%	1.71%	7.09%	-2.29%
GGG	70 Outperform	$13.29B	27.39	19.45%	1.39%	2.85%	3.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNRC	59 Neutral	$8.87B	26.74	12.38%	―	5.52%	9.03%

ITT Corporate Events

ITT Corporation Navigates Tariff Turbulence Amid Global Trade Uncertainties

ITT Corporation faces significant business risks due to ongoing tariff uncertainties, which have been exacerbated by recent U.S. government actions to impose or extend tariffs on imported goods, including industrial components and raw materials. These measures have led to retaliatory tariffs from countries like China, increasing global trade policy uncertainty and affecting supply chain dynamics. The company has attempted to mitigate these impacts through negotiations, diversification, and pricing strategies, but the effectiveness of these measures remains uncertain. Continued trade disputes and protectionist policies could adversely affect ITT Corporation’s product demand, input costs, and overall financial performance.

ITT Corporation Reports Strong Q3 2025 Earnings

ITT Corporation is a diversified manufacturer of engineered components and custom technology solutions for industrial end markets, primarily operating in the aerospace, defense, and automotive sectors. The company is known for its expertise in motion and flow control technologies.

ITT Corporation’s Earnings Call Highlights Strong Growth

ITT Corporation’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. The sentiment was overwhelmingly optimistic, driven by strong revenue growth, margin expansion, and successful acquisitions. While there were minor concerns about temporary amortization impacts and regional auto production declines, the overall outlook remains robust, with increased EPS guidance and a solid market position.

ITT Corporation Reports Strong Q2 2025 Earnings

ITT Corporation, a diversified manufacturer of industrial products, operates primarily in the industrial process, motion technologies, and connect & control technologies sectors, known for its innovative solutions in aerospace, defense, and automotive industries.

ITT Corporation Reports Strong Q2 2025 Earnings

ITT Corporation’s recent earnings call for Q2 2025 was marked by a positive sentiment, highlighting the company’s strong order growth, revenue increases, and margin expansion across its segments. Despite minor challenges from M&A amortization and FX impacts, ITT demonstrated robust performance and raised its full-year EPS outlook, underscoring the significant achievements reported during the call.