NYSE:ITT
$52.67
(3/19 10:57AM)
-1.4%
| Open | $52.87 |
Mkt Cap | $9.8 Billion |
| High | $53.33 |
52Wk High | $56.95 |
| Low | $52.03 |
52Wk Low | $37.26 |
| Volume | 1.5 Million |
Avg Vol 10D | 1.3 Million |
Ockham's Rating/Recommendation Summary
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ITT Revenue
As a value investing shop, we are interested in seeing how ITT's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.42x and the low end of the range at 0.96x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for ITT of 0.89x is well below its normal historic Price to Sales levels. At a price of $53.01, ITT is 26% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.
ITT Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. ITT is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for ITT, the current level of Cash Earnings compared to its historical levels helps identify where ITT is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 15.24 and a historical low Cash Earnings per share ratio of 10.21, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for ITT? From the Ockham perspective, we are looking specifically at ITT to see if the market is recognizing the huge disparity between ITT's past stock price to Cash Earnings ratio to today's levels. At a difference of 19% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at ITT. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
ITT Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for ITT, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. ITT’s estimated annual dividend is $1.00 resulting in a current dividend yield of 1.89%. The highest dividend yield from ITT over recent history was 2.68% while the lowest dividend yield was 0.62%. ITT has shown confidence by hiking up the dividend yield to 14.55% above the historical median.
What are the Experts Saying? Analysts and ITT on Squawk On The Street
Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on Squawk On The Street.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about ITT CORP.
Learn About RazorWire?Squawk On The Street Has News on ITT
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on ITT from Squawk On The Street.
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk On The Street said about ITT CORP.
Learn About RazorWire?Stay Current on ITT's News on Squawk On The Street
The latest news on Squawk On The Street in regards to ITT came through on RazorWire recently.
ITT Corporation receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ITT has received less coverage from the financial media in business television and blogs.
“… We have high unemployment which means people have to go back for retraining, so I think ITT educational is is a great stock to own. > > what does ITT do? > > …”
ITT Corporation Was Talked About by Squawk On The Street
As always, the latest news on ITT is available to Ockham clients through RazorWire, and it was mentioned recently on Squawk On The Street.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, ITT Corporation has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on ITT because it trades within the price range that we would expect given current market conditions and fundamentals.
“… ITT educational services up 15% over the past month. Should you be a buyer heading into the weekend? The answer in today's friday. …”
Discussion Turns to ITT and Merger Talk on Street Signs
While we do not know the details relating to ITT and any possible deal, our RazorWire news analytics has noticed a mention of the stock near a conversation about M&A activity.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. The Ockham valuation currently has a Fairly Valued stance on ITT because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, ITT Corporation has actually sunk a bit in comparison to the others.
“… Start with acquisition of ITT and disney acquiring cap city's those are biggies. How do you see the m & a field > > I think it's obviously at the economy improves people start ... …”
The Outlook for Emerging Markets and ITT Corporation Discussed on InBusiness With Margaret Brennan
For growth, there is nowhere growing more rapidly than emerging markets. Recently, InBusiness With Margaret Brennan talked about emerging markets and their impact on ITT Corporation.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, ITT Corporation has actually sunk a bit in comparison to the others. The Ockham valuation currently has a Fairly Valued stance on ITT because it trades within the price range that we would expect given current market conditions and fundamentals.
“… After the asian financial cris of the 1990's, taiwan use the opportunities to invest in ITT just as europe and japan were cutting back. …”
Squawk On The Street Has the Latest News on ITT
ITT Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.
Based on our methodology, ITT Corporation should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; ITT has received less coverage from the financial media in business television and blogs. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Check out ITT education here today leading the whole pack higher today up 10%. Number one or two in the russell 1000 this morning. Stronger than expected fourth quarter ... …”
ITT Corporation News is Being Covered Right Now on Squawk On The Street
The latest news on Squawk On The Street in regards to ITT came through on RazorWire recently.
Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. We noticed recently that in comparison to all other stocks we analyze in the news; ITT has received less coverage from the financial media in business television and blogs. Based on our methodology, ITT Corporation should hold some appeal to value investors as we view it as Undervalued.
“… If you look at what some of these education stocks did as you come out of a recession, and our favorite is probably ITT educational, symbol esi, it quadrupled after the '01-'02 ... …”
See Who is Talking About News from ITT on The Call
News has broken via the television and viral blogs regarding ITT, so investors should take an interest in learning what was said.
The Motley Fool CAPS data suggests that investors believe ITT Corporation will beat the market in the foreseeable future. We consider ITT as Undervalued at the current price of $49.78. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ITT has been less covered in the news compared to the rest of our universe of stocks.
“… Some of the capital goods or capital greats, if you will, include diesel, ITT and john deere all very strong in an otherwise quiet marketplace here today and that is what we're ... …”
Interested in ITT? See What the Pundits Said on Fast Money
News has broken via the television and viral blogs regarding ITT, so investors should take an interest in learning what was said.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, ITT has been less covered in the news compared to the rest of our universe of stocks. We consider ITT as Undervalued at the current price of $50.68. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. The Motley Fool CAPS data suggests that investors believe ITT Corporation will beat the market in the foreseeable future.
“… The job and make the company successful, if you can't do that and you've got to pay people in cash, you can try and limit the cash, you can try and limit the ITT to ... …”