ITT INC. (ITT) - Comprehensive Stock Analysis & Investment Research
Deep dive into ITT INC.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
ITT INC. Investment Summary
When evaluating whether ITT INC. (ITT) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
ITT INC. (ITT) operates within the Technology sector, specifically in the Pumps & Pumping Equipment industry. The company employs approximately 8,785 people. With a market capitalization of $14 billion, the company is a large-cap stock offering relative stability combined with growth potential.
Financial Performance Analysis
ITT INC. generates annual revenues of approximately $4 billion. The company maintains solid profitability with a net margin of 13.7%, indicating healthy operational efficiency.
From a profitability standpoint, the company reports a Return on Equity (ROE) of 14.6%, which is acceptable for its industry. The Return on Assets (ROA) stands at 7.7%, showing reasonable asset productivity. The gross margin of 34.5% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.53x shows adequate liquidity for meeting short-term liabilities. The debt-to-equity ratio of 0.03x reflects a conservative capital structure with low leverage.
Cash Flow Generation
ITT INC. currently reports negative free cash flow of $-182 million, which may reflect heavy investment in growth or operational challenges. Operating cash flow stands at $-81 million, indicating the company is consuming cash in its operations. Year-over-year operating cash flow has changed by 21.9%, showing strong cash flow momentum.
Valuation Analysis
The P/E ratio of 28.6x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 5.19x, reflecting significant intangible value and market expectations of future growth. For income-focused investors, the current dividend yield of 0.79% offers modest income, with the company likely retaining more earnings for growth.
AI-Powered Price Predictions
Investment Considerations
When determining whether ITT INC. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a large-cap stock, ITT INC. typically offers more stability but potentially lower growth compared to smaller companies.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
ITT INC. (Stock Symbol: ITT) is a prominent company operating within the Technology sector, with a specific focus on the Pumps & Pumping Equipment industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 8,785 professionals, indicating a well-established company with meaningful operational scale and the human resources necessary to compete effectively in its markets.
Market Classification
With a market capitalization of $14 billion, ITT INC. is classified as a large-cap stock. Large-cap companies are well-established industry leaders that typically offer investors relative stability combined with consistent returns. These companies often have diversified revenue streams, established competitive advantages, and the financial resources to weather economic downturns.
Sector & Industry Context
Operating within the Technology sector, ITT INC. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy. The technology sector is known for rapid innovation, high growth potential, and competitive intensity. Companies in this sector must continuously invest in research and development to maintain their competitive edge.
Revenue & Growth Analysis
ITT INC. generates annual revenues of $4 billion , indicating a well-established business with proven market demand for its products or services. This revenue base supports sustainable operations and provides capacity for continued growth investments.
Profitability Analysis
The company achieves a 13.7% net profit margin, demonstrating healthy profitability and efficient operations. This margin level provides comfortable coverage for reinvestment in the business, dividend payments, and building financial reserves for future opportunities or challenges.
Gross profit margin stands at 34.5%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 18.0%, showing solid operational efficiency with balanced investment in sales, marketing, research, and administrative functions.
Market Valuation
Current market capitalization stands at $14 billion . This large-cap valuation typically attracts institutional investors seeking stability and liquidity. Large-cap stocks generally exhibit lower volatility and often pay dividends, making them core portfolio holdings.
Return on Investment Metrics
Return on Equity (ROE) measures 14.6%, indicating adequate returns for shareholders, roughly in line with broader market averages. This represents acceptable but not exceptional capital efficiency.
Return on Assets (ROA) stands at 7.7%, showing moderate asset utilization common in capital-intensive industries like manufacturing or utilities.
Return on Invested Capital (ROIC) measures 12.4%, demonstrating the company creates meaningful value by earning returns well above its cost of capital.
Cash Flow Generation
Free cash flow of $-182 million indicates the company is currently consuming more cash than it generates, which may reflect heavy growth investments, working capital needs, or operational challenges.
Operating cash flow reaches $-81 million , with year-over-year growth of 21.9%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
Strategic Market Position
ITT INC. strategically competes in the highly dynamic Pumps & Pumping Equipment marketplace. As a large-cap market participant, the company has established significant competitive advantages and market presence. Large-cap companies typically benefit from brand recognition, operational scale, diverse revenue streams, and the financial resources to invest in research and development, marketing, and strategic acquisitions. This size category attracts substantial institutional ownership and analyst coverage.
Industry Competitive Landscape
ITT INC. operates within the fast-evolving technology sector where competitive dynamics are shaped by innovation cycles, platform economics, and network effects. Technology companies must continuously invest in R&D to maintain relevance, while also defending against disruption from startups and adjacent market entrants. Success in this sector often requires achieving critical scale or establishing defensible intellectual property positions.
Operational Efficiency
The company currently shows negative free cash flow of $-182 million , with year-over-year cash flow growth of 21.9%. Negative free cash flow may reflect heavy investment in growth, working capital needs, or operational challenges. This is common for high-growth companies investing aggressively but warrants attention for mature businesses.
Margin & Pricing Power Analysis
The company maintains a 34.5% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 18.0% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This healthy operating margin shows balanced investment in growth functions while maintaining reasonable profitability.
Asset Utilization Efficiency
Asset turnover ratio of 0.71x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 1.53 indicates adequate liquidity to meet short-term obligations with reasonable cushion. This level balances working capital efficiency with financial safety.