Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on ITT Inc. (NYSE:ITT) due to its excellent fundamentals in more than one area. ITT is a company with great financial health as well as a a strong history of performance. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on ITT here.
Excellent balance sheet with proven track record
ITT delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ITT also outperformed its industry, which delivered a growth of 30%. This is an notable feat for the company. ITT's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ITT manages its cash and cost levels well, which is a key determinant of the company’s health. ITT seems to have put its debt to good use, generating operating cash levels of 2.94x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For ITT, I've put together three important factors you should look at:
- 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.
- 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.
- 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 firstname.lastname@example.org. 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.