ITT Inc. (ITT)
Valuation Overview•Is ITT Inc. Overvalued or Undervalued?
Commands a premium valuation multiple over its peers, likely pricing in superior execution.
High-quality fundamentals with a strong composite quality score of 76/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
ITT demonstrates adequate business quality with stable profitability. This is backed by a fortress balance sheet, holding significant net cash ($816M) and minimal debt risk.
The company demonstrates solid revenue growth (9.6% 3Y CAGR) paired with robust earnings compounding (11.7% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 15.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.2B | +8.5% | +9.6% | +9.7% | +4.7% | |
| EBITDA | $141.2M | — | +12.9% | — | — | |
| Net Income | $78.0M | -5.8% | +10.0% | — | +3.3% | |
| EPS (Diluted) | $0.89 | -3.0% | +11.7% | +49.1% | +4.6% | |
| Free Cash Flow | $13.8M | +24.9% | +46.6% | +8.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 35.5% | 34.5% | 33.4% | 32.6% |
| Operating Margin | 15.9% | 17.4% | 17.2% | 14.8% |
| Net Margin | 10.8% | 13.1% | 12.6% | 10.2% |
| FCF Margin | 11.4% | 13.0% | 8.3% | 8.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.72 | $1.98 | +15.1% | ||
| Q1'26 | $1.79 | $1.85 | +3.4% | ||
| Q4'25 | $1.67 | $1.78 | +6.6% | ||
| Q3'25 | $1.62 | $1.64 | +1.2% | ||
| Q2'25 | $1.44 | $1.45 | +0.7% | ||
| Q1'25 | $1.48 | $1.50 | +1.4% | ||
| Q4'24 | $1.44 | $1.46 | +1.4% | ||
| Q3'24 | $1.46 | $1.49 | +2.1% |
Total return is +31.6% (1Y), outperforming the benchmark by +6.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +13.4% | +4.1% | — |
| 1Y | +31.6% | +6.6% | +1.0% |
| 3YCAGR | +31.6% | +10.8% | +4.6% |
| 5YCAGR | +18.4% | +4.7% | +7.3% |
| 10YCAGR | +19.2% | +5.4% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about ITT Inc. (ITT) valuation, health, and returns.
ITT Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly expensive versus peers compared to industry peers. trading near fair value (DCF: $169.96)
ITT Inc. has multiple valuation anchors: DCF Intrinsic Value: $169.96 | Peer Relative Fair Value: $181.39 | Wall Street Analyst Target: $243.33 (implying +23.6% upside). A convergence of these signals offers higher conviction.
ITT Inc. displays good financial health with a composite quality score of 76/100, supported by a Altman Z-Score of 6.7 (safe zone), Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 16.1%.
ITT Inc. pays a 0.7% dividend yield, covered by a 23% payout ratio with 23 years of growth, supplemented by a 3.0% buyback yield.
ITT Inc.'s current growth trajectory is Stable. The company achieved +8.5% 1Y revenue growth and -3.0% 1Y EPS growth, compared to its 3Y revenue CAGR of +9.6%.
Wall Street consensus is Buy based on 22 analysts, beating EPS expectations in 92% of recent quarters with a 9-quarter streak. The consensus price target represents a +23.6% change from current levels.
Investment risks for ITT Inc. include: -16.9% 1-year max drawdown. Volatility risk is characterized by a beta of 1.23x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.