One-glance verdict
Fair value unavailable
Not enough cash-flow history to value this one with our method.
Fundamentals snapshot
ITT · NYQ · Industrials · Specialty Industrial Machinery
Current price
$199.50
52-week range
$166.96 - $230.32
Market cap
—
One-glance verdict
Not enough cash-flow history to value this one with our method.
Balance sheet
Net debt $3.24B. Interest coverage shows how many times profit covers the interest bill.
What stands out
What this company does
ITT is an engineering company that manufactures essential, custom-designed parts for the transportation and industrial sectors. The company primarily makes money by selling high-performance brake pads and shock absorbers for vehicles, as well as specialized pumps and valves used in factories. Because its components are critical to many different types of businesses, from car makers to energy producers, the company's performance isn't tied to the success of just one industry.
Originally founded in 1920 as International Telephone & Telegraph, the company started by building a global telephone network. Over the decades, it grew into a massive conglomerate (a single company that owns a controlling stake in a number of smaller companies that conduct business separately), acquiring hundreds of well-known businesses like Sheraton hotels and Avis Rent-a-Car. In 1995, the company began to break apart, splitting into separate hotel, insurance, and manufacturing companies. After further spinoffs of its water technology and defense businesses in 2011, the company became the focused industrial manufacturer it is today, officially named ITT Inc. in 2016.
ITT is a manufacturing company that makes highly specialized and critical parts for the transportation, industrial, and energy industries. You won't find their products on store shelves, but they are essential components inside things you might see every day, like cars, airplanes, and factories. Think of them as a provider of crucial, custom-built components that help complex machines and systems work safely and reliably. They operate in over 35 countries and sell their products to customers in more than 100 countries.
This is ITT's largest business segment and it focuses on the transportation industry. It manufactures high-performance brake pads, shock absorbers, and other components that absorb vibrations for cars, trucks, trains, and buses. Major car manufacturers and public transport operators buy these parts to build into new vehicles, and they are also sold as replacement parts in the aftermarket (the market for parts and accessories for vehicles after they have been sold to the consumer). This segment's well-known brands include KONI shock absorbers and ITT Friction Technologies.
This part of the company makes highly engineered pumps, valves, and monitoring systems for a wide range of industries. Their customers are in fields like energy, mining, chemical production, and food and beverage manufacturing. For example, their Goulds Pumps brand is a major name in industrial pumping systems that are essential for moving fluids in factories and processing plants. This segment is important because it not only sells new equipment but also generates a steady stream of revenue (income a company receives from its normal business activities) from servicing and providing spare parts for the vast amount of equipment already in use.
This segment creates a variety of highly specialized components for demanding environments, primarily in the aerospace, defense, and industrial markets. They produce things like highly reliable electrical connectors for airplanes, energy absorption devices, and flow control components. Customers in these fields, including major aerospace and defense companies, rely on these parts for critical applications where failure is not an option. Some of the key brands in this segment are Cannon connectors and Enidine energy absorption components.
The company's leadership is focused on being a top-performing industrial manufacturer by concentrating on specialized, profitable niches. A key part of their strategy is to grow their aftermarket business, which provides a more stable income from service and replacement parts. They are also making strategic acquisitions (when one company purchases most or all of another company's shares to gain control) to add new technologies and strengthen their existing businesses, particularly in the Industrial Process segment. Management also emphasizes operational excellence, which means a relentless focus on safety, quality, and on-time delivery to keep their customers happy.
Price history
Earnings history
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Is it cheap or expensive?
We couldn't calculate a fair value right now.
Is it drowning in debt?
Net debt $3.2B. Interest coverage 14.2x.
ITT Inc.'s profit covers its interest bill about 14.2 times over. which is stronger than most peers shown here.
Total debt $3.83B Interest coverage 14.23x This is the baseline the peer rows are being compared against.
Total debt $1.89B Interest coverage 11.18x -21% vs ITT Carries about 1.3x less debt cushion than ITT.
Total debt $1.12B Interest coverage 37.54x +164% vs ITT Carries about 2.6x more debt cushion than ITT.
Total debt $52.21M Interest coverage 211.11x +1,383% vs ITT Carries about 14.8x more debt cushion than ITT.
Total debt $2.32B Interest coverage 6.68x -53% vs ITT Carries about 2.1x less debt cushion than ITT.
Total debt $3.26B Interest coverage 12.51x -12% vs ITT Has roughly the same debt cushion as ITT.
What you should know
The numbers
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Valuation
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What you should know