Quality Investor

ITT Inc.

Rank #424Capital Return

ITT · NYSE · Industrials

ITT Inc. (ITT) — Rank #424 by gross profitability (GP/assets 0.13) · ROE 10.2% · Piotroski F-Score 6 / 9.

As-of 2026-09-15 · 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.

Show more

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

Price History

ITT+129.6% · +18.1% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

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

Market Cap

$17.74B

P/E (annual)

32.3

P/S (annual)

4.5

P/B

3.7

P/OCF (annual)

26.5

Shareholder Yield

3.5%

Employees

11,600

Industry

Specialty Industrial Machinery

Exchange

NYSE

Signal Flags

3 green1 red
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
RPO outpacing revenueRemaining performance obligations growing faster than recognized revenue — forward demand building
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

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%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

12.7%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -2.9% — per-share value needs a total required return of 9.8% once share-count change is priced in.

vs. own 6-year median revenue growth: 9.2%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

8.1%

r = 10% (base)

12.7%

r = 12%

16.7%

Net debt / market cap: 5.0%

Base FCF: $547.5M3Y mean FCF: $472.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

32.9xExpensive
15.6xmed 23.9x94.5x

P / S

Price / revenue per share

4.1xExpensive
1.6xmed 2.7x4.1x

P / B

Price / book value per share

3.9xExpensive
2.6xmed 3.3x4.4x

P / GP

Price / gross profit per share

11.5xExpensive
5.0xmed 8.6x11.5x

P / FCF

Price / free cash flow per share

29.3xExpensive
18.4xmed 27.7x45.5x

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

Profitability

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

3rd pctl of 36 SIC 35 peers

Return on equity

10.2%

Gross margin

35.4%

26th pctl of 36 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%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.29

29th pctl of 36 SIC 35 peers (best = lowest)

Current ratio

1.26×

11th pctl of 36 SIC 35 peers

Quick ratio

0.74×

Net cash

-$789.10M

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 19 years of history

Weak
2008-2009 (GFC)
-6.8%Mild decline
2020 (COVID)
-12.9%Significant decline
Worst year on record(any fiscal year, not recession-limited)
-80.7%Significant decline

Cash-flow health

Free cash flow

$547.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

0.12

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.9%

Stock-based comp intensity.

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

Piotroski F-Score

F-Score

6 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Decline
Capital Return