ITT Return On Equity vs. Number Of Shares Shorted
| ITT Stock | USD 159.62 1.24 0.78% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.16236848 | Current Value 0.26 | Quarterly Volatility 0.12737245 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.24 | 0.3373 |
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For ITT profitability analysis, we use financial ratios and fundamental drivers that measure the ability of ITT to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well ITT Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between ITT's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of ITT Inc over time as well as its relative position and ranking within its peers.
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ITT's Revenue Breakdown by Earning Segment
Check out Risk vs Return Analysis.
Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of ITT. If investors know ITT will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about ITT listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.461 | Dividend Share 1.247 | Earnings Share 5.86 | Revenue Per Share 43.098 | Quarterly Revenue Growth 0.077 |
The market value of ITT Inc is measured differently than its book value, which is the value of ITT that is recorded on the company's balance sheet. Investors also form their own opinion of ITT's value that differs from its market value or its book value, called intrinsic value, which is ITT's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ITT's market value can be influenced by many factors that don't directly affect ITT's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ITT's value and its price as these two are different measures arrived at by different means. Investors typically determine if ITT is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ITT's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
ITT Inc Number Of Shares Shorted vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining ITT's current stock value. Our valuation model uses many indicators to compare ITT value to that of its competitors to determine the firm's financial worth. ITT Inc is currently regarded as number one stock in return on equity category among its peers. It is rated below average in number of shares shorted category among its peers making about 4,007,141 of Number Of Shares Shorted per Return On Equity. At this time, ITT's Return On Equity is comparatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value ITT by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.ITT Number Of Shares Shorted vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.19 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Number of Shares Shorted is the total amount of shares that are currently sold short by investors. When a stock is sold short, the short seller assumes the responsibility of repurchasing the stock at a lower price. The speculator will make money if the stock goes down in price or will experience a loss if the stock price goes up.
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| = | 755.35 K |
If a large number of investors decide to short sell an equity instrument within a small period of time, their combined action can significantly affect the price of the stock.
ITT Number Of Shares Shorted Comparison
ITT is currently under evaluation in number of shares shorted category among its peers.
ITT Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ITT, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ITT will eventually generate negative long term returns. The profitability progress is the general direction of ITT's change in net profit over the period of time. It can combine multiple indicators of ITT, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -331.9 M | -348.5 M | |
| Operating Income | 528.2 M | 413.8 M | |
| Income Before Tax | 519.5 M | 343.8 M | |
| Total Other Income Expense Net | -8.7 M | -9.1 M | |
| Net Income | 411.4 M | 334.7 M | |
| Income Tax Expense | 104.8 M | 98 M | |
| Net Income Applicable To Common Shares | 330.3 M | 281.3 M | |
| Net Income From Continuing Ops | 437.5 M | 292 M | |
| Non Operating Income Net Other | 1.2 M | 1.1 M | |
| Interest Income | 7.4 M | 7.7 M | |
| Net Interest Income | -11.2 M | -10.6 M | |
| Change To Netincome | 20.8 M | 24.8 M | |
| Net Income Per Share | 4.99 | 4.84 | |
| Income Quality | 1.31 | 1.69 | |
| Net Income Per E B T | 0.79 | 0.59 |
ITT Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on ITT. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of ITT position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the ITT's important profitability drivers and their relationship over time.
Use ITT in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ITT position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ITT will appreciate offsetting losses from the drop in the long position's value.ITT Pair Trading
ITT Inc Pair Trading Analysis
The ability to find closely correlated positions to ITT could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ITT when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ITT - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ITT Inc to buy it.
The correlation of ITT is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ITT moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ITT Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for ITT can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your ITT position
In addition to having ITT in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Alternative Energy
Large and mid-size companies, ETFs and funds that are either investing or directly involved in providing energy derived from sources not connected to fossil fuels, do not consume natural resources, and do not harm the environment. This includes wind power, nuclear and solar energy, biofuel, ethanol, hydrogen and others alternative sources of energy. The Alternative Energy theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Energy Theme or any other thematic opportunities.
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Additional Tools for ITT Stock Analysis
When running ITT's price analysis, check to measure ITT's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ITT is operating at the current time. Most of ITT's value examination focuses on studying past and present price action to predict the probability of ITT's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ITT's price. Additionally, you may evaluate how the addition of ITT to your portfolios can decrease your overall portfolio volatility.