ITT Inc
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|db | LOCK|sz | LOCK|dCN@C? |
ITT’s Broad Mix of Industrial Components Combine to Form a Wide Moat
Business Strategy and Outlook
ITT has done a great job refining its portfolio through various spinoffs over the last few decades. Its current portfolio of automotive, locomotive, aerospace, and industrial plant components are highly engineered and specified into the designs of customer products and operations. We think ITT’s brake pad business, in which the firm holds nearly 30% global market share, will continue to perform well based on a combination of material science expertise, technological innovations like the smart pad, and its record of on-time delivery (consistently greater than 99.9%) and low defect rate (less than 1 part per billion).
