Itt Inc. (ITT) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Industrials / Manufacturing / Defense · as of Sep 24, 2026
Itt Inc. (ITT)
A forensic read on Itt Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
13.4
Distress distance
Clean
Earnings quality
2
Forensic signals
43.0
P / E (ttm)
11.9%
ROE
$18.9B
Market cap
1.06%
Dividend yield
8.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Itt Inc. earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 13.4, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
115% of FCF
FY2025
Shareholder returns.Returned $632M to shareholders (buybacks + dividends) in FY2025 — 115% of free cash flow. That is $84M (15%) more than free cash flow covered. New debt covered it: total debt rose $289M over FY2025, while cash and short-term investments rose $1.3B. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $36M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 122%.
+10.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +10.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +10% against +7% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 7% of net operating assets, against an accruals ratio of 10.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$3.94B
Revenue Growth YoY+8.5%
Revenue CAGR (2yr)+9.5%
Net Margin12.4%
Free Cash Flow$547.5M
Return on Equity11.9%
Debt / Equity0.13x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Itt Inc.'s actual 10-K/10-Q/8-K filings?