ITT Inc. (ITT)
Industrials · NYQ · US
Fundamentals
Valuation and ratings
ITT Inc. trades at USD194.16, which is 60% above the USD77.80 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 55 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 34.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About ITT Inc.
ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. The company operates three segments: Motion Technologies, Industrial Process, and Connect & Control Technologies. The Motion Technologies segment manufactures brake pads, shock absorbers, energy absorption components, and damping technologies primarily for the transportation industry, including passenger cars, trucks, light and heavy-duty commercial and military vehicles, buses, and trains. This segment sells its products under the ITT Friction Technologies, KONI, Axtone, and Novitek brand names. The Industrial Process segment provides industrial pumps, valves, plant optimization, and remote monitoring systems and services; and aftermarket solutions, such as replacement parts and services. It serves various customers in the energy, chemical and petrochemical, pharmaceutical, general industrial, marine, mining, pulp and paper, food and beverage, power generation, and biopharmaceutical industries. This segment sells its products under the Goulds Pumps, Bornemann, Engineered Valves, Hamworthy Pumps, PRO Services, C'treat, Svanehøj, Rheinhütte Pumpen, and Habonim brand names. The Connect & Control Technologies segment offers engineered connectors, cable assemblies, and specialized products for critical applications supporting various markets, including aerospace and defence, industrial, transportation, medical, and energy under the Cannon, VEAM, BIW Connector Systems, CIA&D, Compulink, Aerospace Controls, Enidine, Compact Automation, Charles E. Gillman, Turn-Act, Neo-Dyn, TopFlite Components, Conoflow, VIDAR, kSARIA, and Micro-Mode brand names. It operates in North America, Europe, Asia, the Middle East, Africa, and South America. The company was incorporated in 1920 and is headquartered in Stamford, Connecticut.
ITT passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
15 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Select Equity Group, Select Equity Group, L.P.$745.64M · 3.8% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$469.35M · 0.2% of book
- Findlay Park Partners, Findlay Park Partners LLP$269.07M · 3.8% of book
- Renaissance Technologies, RENAISSANCE TECHNOLOGIES LLC$68.99M · 0.1% of book
- Joel Greenblatt, Gotham Asset Management, LLC$39.39M · 0.1% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is ITT Inc. (ITT) undervalued?
Against our discounted cash flow estimate of USD77.80, ITT at USD194.16 is 60% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own ITT?
15 of the institutions we track reported a position in ITT in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is ITT's P/E ratio?
ITT trades at 34.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
The full research page for ITT, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.