Latest news with #ITT
Yahoo
3 days ago
- Business
- Yahoo
Why ITT Inc. (NYSE:ITT) Could Be Worth Watching
Today we're going to take a look at the well-established ITT Inc. (NYSE:ITT). The company's stock saw a significant share price rise of 34% in the past couple of months on the NYSE. The company is inching closer to its yearly highs following the recent share price climb. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. But what if there is still an opportunity to buy? Let's take a look at ITT's outlook and value based on the most recent financial data to see if the opportunity still exists. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our valuation model, ITT seems to be fairly priced at around 13% below our intrinsic value, which means if you buy ITT today, you'd be paying a reasonable price for it. And if you believe the company's true value is $172.18, then there's not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that ITT's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. View our latest analysis for ITT Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by a double-digit 18% over the next couple of years, the outlook is positive for ITT. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in ITT's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping tabs on ITT, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. Luckily, you can check out what analysts are forecasting by clicking here. If you are no longer interested in ITT, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
7 days ago
- Business
- Yahoo
Here's Why Investors Should Retain ITT Stock in Portfolio Now
ITT Inc. ITT has been benefiting from strength in the short-cycle business within the energy and industrial markets. Growth in demand for parts, services and valves is aiding the Industrial Process segment. Growth in component and connector sales within the defense and industrial markets is supporting the Connect and Control Technologies demand for the company's brake components and specialized sealing solutions, shock absorbers and damping technologies in the OEM and rail transportation markets is likely to drive the Motion Technologies segment's performance in the quarters ahead. For 2025, the company expects its organic sales to increase 3-5% from the year-ago company intends to strengthen and expand its businesses through acquisitions. In September 2024, ITT acquired kSARIA Parent, Inc. The acquisition will enhance its portfolio of connectivity solutions for the defense and aerospace end markets, technological capabilities and market reach, thereby driving growth and operational in January 2024, it acquired Svanehøj for approximately $395 million. The inclusion of Svanehøj's portfolio of highly engineered flow solutions expanded its customer offerings and boosted its position in the marine pumps industry. Acquisitions contributed 6.3% to the company's sales in first-quarter remains committed to increasing shareholders' value through dividend payments and share repurchases. For instance, during the first three months of 2025, the company paid out dividends of $28.7 million and repurchased shares worth $100 million. Also, in 2024, dividend payments totaled $104.7 million and share repurchases were $104.5 million. The quarterly dividend rate was hiked by 10% in February 2025. Image Source: Zacks Investment Research In the past year, this Zacks Rank #3 (Hold) company has gained 10.5% compared with the industry's 7.7% the company has been subject to high operating costs and expenses over time. For instance, in 2024, its cost of sales recorded a year-over-year increase of 9.6% due to rising raw material and labor costs. Also, the company's sales and marketing expenses rose 18.2% year over year in the same period due to increasing personnel and other sales-related costs. The trend continued in first-quarter 2025, with the sales and marketing expenses rising 6.2% and general and administrative expenses increasing 19.3% year over its substantial international operations, foreign-currency woes are also likely to hurt its top line in the quarters ahead. For instance, in the first quarter, foreign currency translation reduced revenues by $16 million. Some better-ranked stocks from the same space are presented Inc. ATR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup's 2025 earnings has increased 5.4%.Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal's 2025 earnings has increased 1.6%.Unifirst Corporation UNF currently carries a Zacks Rank of 2. UNF delivered a trailing four-quarter average earnings surprise of 12.3%. In the past 60 days, the consensus estimate for Unifirst's fiscal 2025 (ending August 2025) earnings has increased 4.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ITT Inc. (ITT) : Free Stock Analysis Report Unifirst Corporation (UNF) : Free Stock Analysis Report AptarGroup, Inc. (ATR) : Free Stock Analysis Report Federal Signal Corporation (FSS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
21-05-2025
- Business
- Business Wire
ITT Announces Appointment of Mary Laschinger to Board of Directors
STAMFORD, Conn.--(BUSINESS WIRE)-- ITT) today announced the election of Mary Laschinger to its Board of Directors, effective today. Ms. Laschinger served as Chief Executive Officer and Chair of the Board of Directors of Veritiv Corporation (NYSE: VRTV), a leading business-to-business distribution solutions company, from July 2014 until her retirement in September 2020. Prior to leading Veritiv, Ms. Laschinger held multiple senior management roles over more than 20 years at International Paper Company. 'We are honored that Mary has joined the ITT Board of Directors. She has significant global experience with industrial companies that operate in markets similar to ITT, as well as a track record of leading successful teams within these organizations. Notably, this includes the turnaround of several business units from underperformers to top-quartile success stories. Mary's appointment is another strong step in our ongoing board refreshment strategy. With her vast global experience as a public company CEO and director on two other public boards, she will be tremendously additive to ITT moving forward,' said ITT's Chairman of the Board Timothy H. Powers. 'Mary is truly a trailblazer. From her early career as a staff member on a warehouse operations team, to transportation and logistics roles, and all the way to becoming a Fortune 500 CEO. She has shown an incredible ability to drive sustainable results, leading organizations across the U.S., Europe and Asia. Mary's global experience in complex manufacturing operations, product management and M&A will be an asset to the ITT of today and the future. We are humbled to have Mary join the ITT board,' said ITT's Chief Executive Officer and President Luca Savi. About Mary Laschinger Prior to joining Veritiv, Ms. Laschinger served as Senior Vice President of International Paper Company, a global leader in sustainable packaging and pulp products, from 2007 to July 2014. She also served as President of International Paper's former distribution business and president of its Europe, Middle East, Africa and Russia businesses. Ms. Laschinger currently serves on the Board of Directors of Kellanova, previously Kellogg Company, a global leader in food manufacturing, and of Dollar Tree Inc., a multi-price point chain of discount variety stores. Additionally, Ms. Laschinger is a member of the Executive Advisory Council for Apollo Global Management. Ms. Laschinger holds a bachelor's degree in business from the University of Wisconsin and a Master of Business Administration degree from the University of Connecticut. She has also completed postgraduate studies in executive management at the Kellogg School of Management at Northwestern University. About ITT ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in Stamford, Connecticut, with employees in more than 35 countries and sales in approximately 125 countries. For more information, visit ITT-O
Yahoo
17-05-2025
- Business
- Yahoo
Is ITT Inc.'s (NYSE:ITT) Latest Stock Performance A Reflection Of Its Financial Health?
ITT's (NYSE:ITT) stock is up by a considerable 21% over the past month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on ITT's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for ITT is: 19% = US$518m ÷ US$2.8b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.19 in profit. See our latest analysis for ITT We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. At first glance, ITT seems to have a decent ROE. Especially when compared to the industry average of 13% the company's ROE looks pretty impressive. This probably laid the ground for ITT's significant 22% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For instance, the company has a low payout ratio or is being managed efficiently. As a next step, we compared ITT's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 16%. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is ITT fairly valued? This infographic on the company's intrinsic value has everything you need to know. ITT's ' three-year median payout ratio is on the lower side at 23% implying that it is retaining a higher percentage (77%) of its profits. So it looks like ITT is reinvesting profits heavily to grow its business, which shows in its earnings growth. Additionally, ITT has paid dividends over a period of at least ten years which means that the company is pretty serious about sharing its profits with shareholders. Based on the latest analysts' estimates, we found that the company's future payout ratio over the next three years is expected to hold steady at 19%. As a result, ITT's ROE is not expected to change by much either, which we inferred from the analyst estimate of 16% for future ROE. In total, we are pretty happy with ITT's performance. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
15-05-2025
- Automotive
- Yahoo
ITT Q1 Earnings Call: Orders, Backlog, and New Product Launches Highlight Flat Sales
Engineered components manufacturer for critical industries ITT Inc. (NYSE: ITT) beat Wall Street's revenue expectations in Q1 CY2025, but sales were flat year on year at $913 million. Its non-GAAP profit of $1.45 per share was 1% above analysts' consensus estimates. Is now the time to buy ITT? Find out in our full research report (it's free). Revenue: $913 million vs analyst estimates of $907.8 million (flat year on year, 0.6% beat) Adjusted EPS: $1.45 vs analyst estimates of $1.44 (1% beat) Adjusted EBITDA: $196.5 million vs analyst estimates of $193.4 million (21.5% margin, 1.6% beat) Management reiterated its full-year Adjusted EPS guidance of $6.30 at the midpoint Operating Margin: 16.5%, in line with the same quarter last year Free Cash Flow Margin: 8.4%, up from 3.3% in the same quarter last year Organic Revenue was flat year on year (9.5% in the same quarter last year) Market Capitalization: $11.84 billion ITT's first quarter results were shaped by a sharp rise in orders and backlog, balancing a flat year-over-year sales performance. Management highlighted continued momentum from recent acquisitions, particularly kSARIA and Svanehøj, which drove strong new project awards and contributed to a record order book. CEO Luca Savi emphasized operational execution and ongoing productivity initiatives, noting that pricing actions and cost control offset volume declines in auto and aerospace segments. Additionally, ITT generated record free cash flow as working capital improved. Looking ahead, management reiterated its adjusted EPS guidance for the year, citing confidence in margin expansion driven by price realization, productivity gains, and contributions from new products such as the VIDAR industrial motor. CFO Emmanuel Caprais acknowledged persistent macroeconomic uncertainty in the second half but stated that further actions—such as cost reductions and pricing adjustments—were already planned to address tariff-related headwinds. Savi maintained, 'We continue to expand our margin with more opportunities still to capture,' signaling a disciplined approach to execution despite a fluid environment. ITT's leadership attributed the flat sales in Q1 to market softness in auto and aerospace but pointed to strong order activity and successful integration of acquisitions as critical positives. Management focused on operational performance, margin expansion, and new product innovation as key themes impacting the quarter. Record Orders and Backlog: Orders exceeded $1 billion, supported by kSARIA and Svanehøj acquisitions, resulting in a 21% year-over-year backlog increase. Management cited large project wins, particularly in Industrial Process (IP), as evidence of market share gains and robust demand across energy and marine markets. Acquisition Performance: The kSARIA acquisition drove nearly 40% order growth in Connect & Control Technologies (CCT), while Svanehøj's marine pump orders grew 70%. These deals were highlighted as enhancing ITT's presence in defense, marine, and industrial sectors. Margin Expansion Despite Headwinds: Margins improved across all major segments, with operational productivity and price actions more than offsetting cost inflation, M&A-related dilution, and unfavorable foreign currency effects. Management emphasized that price realization, particularly in CCT, was a significant contributor. VIDAR Product Launch: The introduction of the VIDAR industrial motor—a drop-in replacement designed to improve pumping efficiency—was cited as a strategic move to enter a $6 billion addressable market, with initial customer pilots demonstrating substantial energy and cost savings. Capital Deployment and Share Buybacks: ITT repurchased $100 million in shares during Q1 and an additional $300 million after quarter-end, reducing share count by 4%. Management stated that these actions were not a function of reduced M&A opportunities but reflected confidence in future outlook and ongoing capital allocation discipline. Management's outlook for the remainder of the year centers on the execution of its order backlog, continued integration of recent acquisitions, and successful mitigation of tariff-related costs. The company's guidance assumes steady project conversion and ongoing margin expansion, with attention to external risks. Order Backlog Conversion: The large backlog in Industrial Process and CCT is expected to support revenue growth through project execution, especially in energy and marine applications, even if short-cycle order activity moderates. Tariff Mitigation and Pricing Actions: Management plans to offset $50–$60 million in anticipated tariff costs through a mix of price increases, cost controls, and sourcing flexibility. The company expects these actions to prevent a net impact on earnings, though there may be some margin timing effects. New Product and Market Expansion: The ramp-up of new products like VIDAR and further investments in regions such as Saudi Arabia and India are expected to contribute incremental growth, with management citing ongoing pilots and market share gains as supporting factors. Scott Davis (Melius Research): Asked if the surge in orders was due to customers accelerating purchases ahead of price increases; management clarified that most project orders were long in development, with no evidence of pre-buying. Mike Halloran (Baird): Sought details on the resilience of the business model and guidance bridge; management highlighted backlog strength and confidence in project execution, while acknowledging a cautious outlook for the second half. Vlad Bystricky (Citigroup): Inquired about exposure to oil price volatility in Saudi projects; management reported continued order growth and no change in customer tone, attributing success to high on-time delivery and execution. Jeff Hammond (KeyBanc): Pressed for specifics on tariff mitigation and price increases; management explained that most cost increases would be offset by commercial actions and sourcing adjustments, particularly in CCT and IP segments. Joe Ritchie (Goldman Sachs): Asked about the VIDAR launch and its integration with existing sales channels; management described VIDAR as a separate business unit with some cross-selling incentives but distinct from core pump operations. In the coming quarters, the StockStory team will focus on (1) the pace and margin quality of backlog conversion, especially in Industrial Process and CCT; (2) the effectiveness of tariff mitigation strategies and their actual versus expected impact on profitability; and (3) early customer adoption and revenue contribution from the VIDAR motor launch. Additional scrutiny will be given to the ongoing integration of recent acquisitions, as well as any signs of changing demand in end-markets such as automotive, aerospace, and energy. ITT currently trades at a forward P/E ratio of 22.9×. Should you load up, cash out, or stay put? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
