ITT Inc. is a global company that specializes in the manufacture of critical and engineered components and technology solutions. The company serves high-growth markets in transportation, industrial processes, energy, aerospace and defense. ITT operates in three major segments: Industrial Process, Motion Technologies and Connect and Control Technologies. It raised its dividend this year and the price per share is at new highs. Let's take a look at what's behind the company's success.

ITT Inc, originally known as International Telephone & Telegraph, has a rich history that dates back more than a century. The company was founded in 1920 by brothers Sosthenes and Hernando Behn with the goal of building the first worldwide system of interconnected telephone lines. It began as the Puerto Rico Telephone Company, but grew rapidly through strategic acquisitions and the purchase of patents in telecommunications.

Over the course of 1960 to 1977, ITT expanded into various industries and acquired over 350 companies, including well-known brands such as Sheraton Hotels, Avis Rent-a-Car, and Continental Baking (maker of Wonder Bread). This transformed ITT from a middle-income company to a global conglomerate. It is now the world's leading supplier of engineered products.

Management

Luca Savi - CEO

Luca Savi is currently not only the CEO but also the President of ITT Inc.

Luca previously served as President and Chief Operating Officer of ITT. He joined ITT in 2011 as President of Motion Technologies. Mr. Savi previously held several key leadership roles in Italy, China and the United States for Comau, a subsidiary of the Fiat Group.

Prior to that, he also held senior roles at Honeywell International. He began his career as an engineer with Royal Dutch Shell and Ferruzzi-Montedison Group. He also serves on the board of MSA Safety Inc.

He holds a degree in chemical engineering from the Polytechnic of Milan, Italy and an M.B.A. from the London Business School.

If you would like to learn more about the CEO himself, you can check out his Linkedinwhere, in addition to his entire work process broken down into minute detail, you'll learn new information about the company that he adds here on a regular basis.

Industry/Specialization of the company

Manufacturing and Industry

Automotive: This is where the company focuses on the manufacturing of automobiles, motorcycles, trucks and related parts. This includes the design, manufacture and sale of motor vehicles and their components. Companies in this sector also often work on innovations in the field of electric mobility and autonomous driving.

Engineering: This sector involves the manufacture of machinery and equipment for various industries, including construction, agricultural and manufacturing machinery. It also includes maintenance and repair of machinery.

Services

Financial services: The company operates in banking, insurance, investment services and other financial products. This industry includes money management, lending, insurance, and investment advisory services.

Healthcare: The company operates hospitals, clinics, pharmacies and other healthcare facilities and services. It includes the provision of health care services, development and sale of drugs and medical devices.

Information Technology (IT) and Telecommunications

The Company creates and maintains software applications and systems. The companies in this industry with which it works are engaged in programming, testing and implementing software solutions for various purposes. Cybersecurity is also not to be missed. This is all about protecting computer systems and networks from cyber attacks.

Company profitability and cash

The current market capitalization of the company, which has increased many times over the past few years, now stands at $10.78 billion. This is the highest market value ITT has ever been at. The company currently employs 10,600 people.

The company was founded in 1920 and has maintained a very good debt to free cash ratio ever since. It currently owes only $647.9 million. It has nearly $450 million in cash on hand, so it could cover a very significant portion of its debt right away.

The distribution of shares by their owners is then, as with most, companies on the clear side, with market shareholders. Only 0.71% of all shares ever issued are held in private hands.

In 2019, the company's revenue was $2.85 billion. Operating margin was 11.42% and net income was $325 million. The next year, thanks to covide, revenue came in lower, at $2.48 billion to be exact. Profit margin dropped significantly and ended up below three percent. The company earned only $72.5 million for the year. But in the last three years, the company has hit new highs in share price and all three of these metrics and continues to grow. In 2021, revenue was $2.77 billion and last year it was already $3.28 billion. Profitability is up to 12.5%and net income has grown to $410 million.

The United States accounts for the largest share of the company's revenue. Last year, revenue from this country accounted for 32.77% of total revenue. Europe was second with $658 million. It accounted for 20.07% of the total revenue in 2023. Germany alone, which is not included in the company's country revenue list, generated $387 million. China then contributed $351 million. North America (excluding the US) brought in 8.76% of the company's total revenue. The rest of Asia, the Middle East and South America accounted for the remaining half a billion dollars.

If we look at earnings per share, they have indeed improved very significantly since 2016. Each year they have been higher than the previous one (except for the 2020 covid year). In 2016, they were "only" $2.32 in today's terms. By 2019, their value had risen to $3.81. By 2020, it had fallen to $3.2. But in recent years, it has gone into a very strong up-trend. In 2021, earnings per share were $4.05, and last year's EPS was $5.21 cents. With the very high interest in the company's new products and services from its growing customer base, Wall Street analysts' projections are also based on that. On EPS for years to come. By roll 2027, they believe earnings per share could look as high as $8.42.