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Why ITT Inc. (NYSE:ITT) Could Be Your Next Investment

Simply Wall St

ITT Inc. (NYSE:ITT) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of ITT, it is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on ITT here.

Excellent balance sheet with proven track record

In the previous year, ITT has ramped up its bottom line by 56%, with its latest earnings level surpassing its average level over the last five years. Not only did ITT outperformed its past performance, its growth also surpassed the Machinery industry expansion, which generated a 19% earnings growth. This paints a buoyant picture for the company. ITT is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. ITT appears to have made good use of debt, producing operating cash levels of 2.15x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:ITT Income Statement, October 7th 2019

Next Steps:

For ITT, I've compiled three pertinent factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for ITT’s future growth? Take a look at our free research report of analyst consensus for ITT’s outlook.
  2. Valuation: What is ITT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ITT is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ITT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.