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Independent Investment Trust

LSE:IIT
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IIT
LSE
£438M
Market Cap
  1. Home
  2. GB
  3. Diversified Financials
Company description

The Independent Investment Trust PLC is a publically owned investment manager. The last earnings update was 202 days ago. More info.


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IIT Share Price and Events
Price Volatility
IIT
Industry
5yr Volatility vs Market

Value

 Is Independent Investment Trust undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Independent Investment Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Independent Investment Trust.

LSE:IIT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Last reported Return on Equity.
= Stable Book Value * Return on Equity
= £6.10 * 43.02%
£2.62
Book Value of Equity per Share Last reported Book Value. £6.10
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:IIT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.886 (1 + (1- 19%) (0%))
0.944
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.944 * 8.6%)
9.52%

Discounted Cash Flow Calculation for LSE:IIT using Excess Returns Model Model

The calculations below outline how an intrinsic value for Independent Investment Trust is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:IIT Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (43.02% – 9.52%) * £6.10)
£2.04
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £2.04 / (9.52% - 1.4%)
£25.16
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £6.10 + £25.16
£31.26
LSE:IIT Discount to Share Price
Calculation Result
Value per share (GBP) From above. £31.26
Current discount Discount to share price of £7.86
= -1 x (£7.86 - £31.26) / £31.26
74.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Independent Investment Trust is available for.
Intrinsic value
>50%
Share price is £7.86 vs Future cash flow value of £31.26
Current Discount Checks
For Independent Investment Trust to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Independent Investment Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Independent Investment Trust's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Independent Investment Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Independent Investment Trust's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:IIT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in GBP £2.17
LSE:IIT Share Price ** LSE (2018-06-18) in GBP £7.86
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PE Ratio Median Figure of 88 Publicly-Listed Capital Markets Companies 15.48x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 880 Publicly-Listed Companies 17.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Independent Investment Trust.

LSE:IIT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:IIT Share Price ÷ EPS (both in GBP)

= 7.86 ÷ 2.17

3.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Independent Investment Trust is good value based on earnings compared to the GB Capital Markets industry average.
  • Independent Investment Trust is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Independent Investment Trust's expected growth come at a high price?
Raw Data
LSE:IIT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 1.22x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 609 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Independent Investment Trust, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Independent Investment Trust's assets?
Raw Data
LSE:IIT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in GBP £6.10
LSE:IIT Share Price * LSE (2018-06-18) in GBP £7.86
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry PB Ratio Median Figure of 134 Publicly-Listed Capital Markets Companies 1.29x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,502 Publicly-Listed Companies 1.75x
LSE:IIT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:IIT Share Price ÷ Book Value per Share (both in GBP)

= 7.86 ÷ 6.10

1.29x

* Primary Listing of Independent Investment Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Independent Investment Trust is good value based on assets compared to the GB Capital Markets industry average.
X
Value checks
We assess Independent Investment Trust's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Independent Investment Trust has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (0%).

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Independent Investment Trust expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Independent Investment Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

  • Independent Investment Trust is not covered by any analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8%
Expected Capital Markets industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Independent Investment Trust expected to grow at an attractive rate?
  • Unable to compare Independent Investment Trust's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Independent Investment Trust's earnings growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
  • Unable to compare Independent Investment Trust's revenue growth to the United Kingdom of Great Britain and Northern Ireland market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
LSE:IIT Future Growth Rates Data Sources
Data Point Source Value (per year)
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 8%
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:IIT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:IIT Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2017-11-30 121 120
2017-08-31 99 98
2017-05-31 77 77
2017-02-28 44 43
2016-11-30 11 10
2016-08-31 24 23
2016-05-31 37 36
2016-02-29 43 42
2015-11-30 49 5 49
2015-08-31 41 41
2015-05-31 33 4 33
2015-02-28 25 4 25

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Independent Investment Trust is high growth as no earnings estimate data is available.
  • Unable to determine if Independent Investment Trust is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:IIT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Independent Investment Trust Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IIT Past Financials Data
Date (Data in GBP Millions) EPS *
2017-11-30 2.17
2017-08-31 1.77
2017-05-31 1.38
2017-02-28 0.78
2016-11-30 0.18
2016-08-31 0.41
2016-05-31 0.64
2016-02-29 0.75
2015-11-30 0.85
2015-08-31 0.71
2015-05-31 0.57
2015-02-28 0.43

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Independent Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Independent Investment Trust is trading at Independent Investment Trust'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Independent Investment Trust's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Diversified Financials companies here
  3. Independent Investment Trust's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Independent Investment Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Independent Investment Trust has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Independent Investment Trust performed over the past 5 years?

  • Independent Investment Trust's last earnings update was 202 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Independent Investment Trust's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Independent Investment Trust has delivered over 20% year on year earnings growth in the past 5 years.
  • Independent Investment Trust's 1-year earnings growth exceeds its 5-year average (1070.5% vs 36.6%)
  • Independent Investment Trust's earnings growth has exceeded the GB Capital Markets industry average in the past year (1070.5% vs 30%).
Earnings and Revenue History
Independent Investment Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Independent Investment Trust Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:IIT Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-11-30 121.07 120.32 0.72
2017-08-31 99.14 98.48 0.72
2017-05-31 77.21 76.64 0.72
2017-02-28 44.03 43.46 0.72
2016-11-30 10.86 10.28 0.72
2016-08-31 23.82 23.21 0.70
2016-05-31 36.79 36.13 0.68
2016-02-29 42.93 42.42 0.66
2015-11-30 49.08 48.70 0.64
2015-08-31 40.97 40.73 0.63
2015-05-31 32.86 32.77 0.62
2015-02-28 25.17 24.92 0.62
2014-11-30 17.48 17.07 0.62
2014-08-31 17.36 16.27 0.62
2014-05-31 17.24 15.47 0.62
2014-02-28 23.58 21.93 0.62
2013-11-30 29.92 28.39 0.62
2013-08-31 32.47 31.44 0.62
2013-05-31 35.03 34.49 0.61
2013-02-28 24.31 23.69 0.61
2012-11-30 13.59 12.90 0.61
2012-08-31 -2.13 -2.76 0.61
2012-05-31 -17.84 -18.41 0.61
2012-02-29 -9.43 -10.19 0.62
2011-11-30 -1.01 -1.96 0.62
2011-08-31 20.71 19.51 0.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Independent Investment Trust has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Independent Investment Trust used its assets more efficiently than the GB Capital Markets industry average last year based on Return on Assets.
  • Independent Investment Trust has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Independent Investment Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Independent Investment Trust has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Independent Investment Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Independent Investment Trust's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Independent Investment Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Independent Investment Trust has no long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Independent Investment Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Independent Investment Trust has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Independent Investment Trust Company Filings, last reported 6 months ago.

LSE:IIT Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2017-11-30 338.45 0.00 23.70
2017-08-31 338.45 0.00 23.70
2017-05-31 297.32 0.00 16.40
2017-02-28 297.32 0.00 16.40
2016-11-30 220.87 0.00 10.25
2016-08-31 220.87 0.00 10.25
2016-05-31 222.31 0.00 9.22
2016-02-29 222.31 0.00 9.22
2015-11-30 218.97 0.00 3.85
2015-08-31 218.97 0.00 3.85
2015-05-31 199.10 0.00 3.16
2015-02-28 199.10 0.00 3.16
2014-11-30 179.86 0.00 9.54
2014-08-31 179.86 0.00 9.54
2014-05-31 172.54 0.00 7.74
2014-02-28 172.54 0.00 7.74
2013-11-30 166.89 0.00 18.15
2013-08-31 166.89 0.00 18.15
2013-05-31 162.06 0.00 30.65
2013-02-28 162.06 0.00 30.65
2012-11-30 145.12 0.00 8.35
2012-08-31 145.12 0.00 8.35
2012-05-31 133.76 0.00 2.38
2012-02-29 133.76 0.00 2.38
2011-11-30 138.23 0.00 5.14
2011-08-31 138.23 0.00 5.14
  • Independent Investment Trust has no debt.
  • Independent Investment Trust has not taken on any debt in the past 5 years.
  • Independent Investment Trust has no debt, it does not need to be covered by operating cash flow.
  • Independent Investment Trust has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Independent Investment Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Independent Investment Trust has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Independent Investment Trust's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.02%
Current annual income from Independent Investment Trust dividends.
If you bought £2,000 of Independent Investment Trust shares you are expected to receive £20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Independent Investment Trust's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.7%).
  • Independent Investment Trust's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (4.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:IIT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 72 Stocks 2.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 747 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:IIT Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-02-12 0.080 1.091
2018-01-18 0.080 1.183
2017-07-18 0.065 1.042
2017-02-17 0.075 1.584
2017-01-20 0.075 1.867
2016-02-23 0.080 2.116
2016-01-21 0.080 2.075
2015-02-20 0.070 2.078
2015-01-14 0.070 2.441
2014-02-21 0.060 2.161
2014-01-24 0.060 2.242
2013-07-05 0.050 1.906
2013-02-22 0.050 2.079
2013-01-31 0.050 2.195
2013-01-30 0.100 4.474
2012-07-06 0.000 0.000
2012-02-20 0.050 2.501
2012-01-31 0.050 2.483
2011-01-31 0.050 2.407
2011-01-24 0.050 2.200
2010-01-29 0.080 4.288
2010-01-18 0.080 4.464
2009-01-23 0.050 3.443
2008-07-08 0.050 3.705
2008-06-23 0.050 2.794

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Independent Investment Trust's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by net profit (36.1x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Independent Investment Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Independent Investment Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Independent Investment Trust has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Independent Investment Trust's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Max Ward, image provided by Google.
Max Ward
COMPENSATION £200,000
AGE 67
CEO Bio

Mr. Maxwell Colin Bernard Ward, also known as Max, serves as the Managing Director of Independent Investment Trust PLC. Mr. Ward has an extensive experience of investment management and was a Partner at Baillie Gifford for 25 years from 1975 to 2000 and served as Manager of Scottish Mortgage & Trust plc from 1989 to 2000. Mr. Ward was the head of Baillie Gifford & Co's UK Equity Department from 1981 to 2000. He served as the Chairman of Dunedin Income Growth Investment Trust PLC until May 4, 2006. Mr. Ward serves as a Director of AEGON UK Plc. He serves as an Executive Director of The Independent Investment Trust PLC. He served as a Member of the Board of Directors of Foreign & Colonial Investment Trust Plc from May 2000 to May 2011 and as its Senior Independent Director since May 1, 2008. Mr. Ward is a director of The Edinburgh Investment Trust plc. Mr. Ward served as Director of Dunedin Income Growth Investment Trust PLC from 2000 to May 4, 2006.

CEO Compensation
  • Max's compensation has been consistent with company performance over the past year.
  • Max's compensation appears reasonable for a company of this size and profit level.
Management Team

Max Ward

TITLE
MD & Executive Director
COMPENSATION
£200K
AGE
67
Board of Directors

Douglas Christopher McDougall

TITLE
Chairman
COMPENSATION
£55K
AGE
73

Max Ward

TITLE
MD & Executive Director
COMPENSATION
£200K
AGE
67

James Gordon Ferguson

TITLE
Senior Independent Director
COMPENSATION
£22K
AGE
69

Robert Laing

TITLE
Non-Executive Director
COMPENSATION
£22K
AGE
63
Recent Insider Trading
  • Independent Investment Trust insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Independent Investment Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Independent Investment Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Should You Have The Independent Investment Trust PLC's (LON:IIT) In Your Portfolio?

A widely-used metric to measure a stock's market risk is beta, and the broad market index represents a beta value of one. … Any stock with a beta of greater than one is considered more volatile than the market, and those with a beta less than one is generally less volatile. … Based on this beta value, IIT appears to be a stock that an investor with a high-beta portfolio would look for to reduce risk exposure to the market.

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Does The Independent Investment Trust PLC's (LON:IIT) PE Ratio Signal A Buying Opportunity?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for IIT Price per share = £7.32 Earnings per share = £2.169 ∴ Price-Earnings Ratio = £7.32 ÷ £2.169 = 3.4x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … IIT’s P/E of 3.4x is lower than its industry peers (15.6x), which implies that each dollar of IIT’s earnings is being undervalued by investors. … For example, if you are inadvertently comparing lower risk firms with IIT, then IIT’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price.

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Independent Investment Trust And Other Top Undervalued Stocks

Stocks, such as Independent Investment Trust, trading at a market price below their true values are considered to be undervalued. … Independent Investment Trust was established in 2000 and with the company's market capitalisation at GBP £410.48M, we can put it in the small-cap group. … Started in 1976, and currently run by Jonathan Bednall, the company employs 2,592 people and with the company's market capitalisation at GBP £116.91M, we can put it in the small-cap group.

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How Should You Think About The Independent Investment Trust PLC's (LON:IIT) Risks?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … Check out our latest analysis for Independent Investment Trust An interpretation of IIT's beta Independent Investment Trust's beta of 0.38 indicates that the stock value will be less variable compared to the whole stock market. … IIT’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio.

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Is The Independent Investment Trust PLC's (LON:IIT) ROE Of 43.02% Sustainable?

Independent Investment Trust’s cost of equity is 9.30%. … Currently, Independent Investment Trust has no debt which means its returns are driven purely by equity capital. … Independent Investment Trust exhibits a strong ROE against its peers, as well as sufficient returns to cover its cost of equity.

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Does The Independent Investment Trust PLC's (LON:IIT) PE Ratio Warrant A Buy?

It compares a stock’s price per share to the stock’s earnings per share. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for IIT Price per share = £6.97 Earnings per share = £2.169 ∴ Price-Earnings Ratio = £6.97 ÷ £2.169 = 3.2x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … Since IIT's P/E of 3.2x is lower than its industry peers (17.9x), it means that investors are paying less than they should for each dollar of IIT's earnings.

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How Does The Independent Investment Trust PLC's (LON:IIT) Earnings Growth Stack Up Against Industry Performance?

In this commentary, I will examine The Independent Investment Trust PLC's (LSE:IIT) latest earnings update (31 May 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the capital markets industry performed. … See our latest analysis for Independent Investment Trust Did IIT's recent earnings growth beat the long-term trend and the industry? … For Independent Investment Trust, its latest earnings (trailing twelve month) is £76.6M, which, against the prior year's figure, has escalated by over 100%.

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How Should Investors Feel About The Independent Investment Trust PLC's (LSE:IIT) CEO Pay?

Max Ward took the reins as CEO of The Independent Investment Trust PLC's (LSE:IIT) and grew market cap to GBP£350.99M recently. … View our latest analysis for Independent Investment Trust What has IIT performance been like? … Allowing for IIT's size and performance, in terms of market cap and earnings, it seems that Ward is being paid well below other UK CEOs of small-caps, on average.

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Why You Need To Look At This Factor Before Buying The Independent Investment Trust PLC (LSE:IIT)

If you are looking to invest in The Independent Investment Trust PLC’s (LSE:IIT), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … View our latest analysis for Independent Investment Trust An interpretation of IIT's beta Independent Investment Trust's beta of 0.35 indicates that the stock value will be less variable compared to the whole stock market. … IIT's beta implies it may be a stock that investors with high-beta portfolios might find relevant if they wanted to reduce their exposure to market risk, especially during times of downturns.

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Company Info

Map
Description

The Independent Investment Trust PLC is a publically owned investment manager. The firm launches and manages equity mutual fund for its clients. It invests in public equity markets across the globe. The Independent Investment Trust PLC is based in Edinburgh, United Kingdom.

Details
Name: The Independent Investment Trust PLC
IIT
Exchange: LSE
Founded: 2000
£438,213,000
55,470,000
Website: http://www.independentinvestmenttrust.co.uk
Address: The Independent Investment Trust PLC
17 Dublin Street,
Edinburgh,
EH1 3PG,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE IIT Ordinary Shares London Stock Exchange GB GBP 18. Oct 2000
Number of employees
Current staff
Staff numbers
2
Independent Investment Trust employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/06/20 00:35
End of day share price update: 2018/06/18 00:00
Last earnings update: 2017/11/30
Last annual earnings update: 2017/11/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.