Quality Investor

ITT Inc.

Rank #405Capital ReturnWatchlistCompare with other stocks

ITT · NYSE · Industrials

ITT Inc. (ITT) — Rank #405 by gross profitability (GP/assets 0.13) · ROE 10.2% · Piotroski F-Score 6 / 9.

As-of 2026-10-30 · CIK 0000216228 · all metrics point-in-time as of the filing date.

About

ITT Inc., together with its subsidiaries, manufactures and sells engineered critical components and customized technology solutions for the transportation, industrial, and energy markets.

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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.

Industry
Specialty Industrial Machinery
Sector
Industrials
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
itt.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

11,600

Industry

Specialty Industrial Machinery

Exchange

NYSE

11/12

Flags passed

ITT fails 1 critical flag

Passes 11 of 12 quality flags

  • FAIL
    Operating margin declining

    Operating margin lower than prior year

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.13
Return on equity
10.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.29
Current ratio
1.26×
Net cash
-$789.10M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.9%

Growth

2/2 pass
Revenue growth
8.5%
Piotroski F-Score
6 / 9
Share dilution
-2.9%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

Warning: Operating margin declining · GP/assets 0th percentile of 26 SIC 35 peers

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

0th pctl of 26 SIC 35 peers

Return on equity

10.2%

Gross margin

35.4%

20th pctl of 26 SIC 35 peers

Revenue growth (YoY)

8.5%

RPO growth (YoY)

17.7%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.6%

Revenue CAGR (5Y)

9.7%

Earnings CAGR (3Y)

10.0%

FCF CAGR (3Y)

46.6%

Cash Flow Health

Is the cash real?

No warning flags · FCF 12% above net income

Free cash flow

$547.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

12.2%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $789.10M, F-Score 6/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.29

24th pctl of 26 SIC 35 peers (best = lowest)

Current ratio

1.26×

12th pctl of 26 SIC 35 peers

Quick ratio

0.74×

Net cash

-$789.10M

Cash & equivalents minus total debt.

Piotroski F-Score

6 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

4.0 / 5

Strong
Payout ratio
22.7%5/5 Strong
FCF coverage
4.93×5/5 Strong
Dividend growth streak
10 yr5/5 Strong
Balance-sheet health
D/E 1.29 · IC N/A1/5 Weak

Capital allocation quality

Composite score

4.7 / 5

Strong
Share count trend(net buybacks)
-2.9%4/5 Strong
Buyback timing
N/AN/A
Dividend growth consistency
10 yr5/5 Strong
Net debt trajectory(deleveraging)
18.7%5/5 Strong

Lifecycle Phase History

20202025
Decline
Capital Return

Price History

ITT+137.4% · +18.8% CAGRSPY+82.9% · +12.8% CAGR