NYSE:ITG

Stock Analysis Report

Executive Summary

Investment Technology Group, Inc. operates as a financial technology company in the United States, Canada, Europe, and the Asia Pacific.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

How has Investment Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

ITG

4.4%

US Capital Markets

3.4%

US Market


1 Year Return

50.6%

ITG

0.5%

US Capital Markets

5.4%

US Market


Shareholder returns

ITGIndustryMarket
7 Day-0.3%4.4%3.4%
30 Day-0.1%-3.9%-1.0%
90 Day0.3%-2.0%-0.4%
1 Year52.3%50.6%2.7%0.5%7.7%5.4%
3 Year57.8%51.5%51.7%43.2%46.2%36.8%
5 Year77.1%67.8%77.1%60.9%65.6%47.5%

Price Volatility Vs. Market

How volatile is Investment Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Investment Technology Group undervalued compared to its fair value and its price relative to the market?

2.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate ITG's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate ITG's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ITG is unprofitable, so we can't compare its PE Ratio to the Capital Markets industry average.

PE vs Market: ITG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ITG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ITG is good value based on its PB Ratio (2.8x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Investment Technology Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ITG's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if ITG's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ITG's revenue (7.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ITG's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Investment Technology Group performed over the past 5 years?

-42.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ITG is unprofitable, and losses have increased over the past 5 years at a rate of -42.4% per year.

Accelerating Growth: Unable to compare ITG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ITG is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (36.2%).


Return on Equity

High ROE: ITG has a negative Return on Equity (-0.24%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ITG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ITG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Investment Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: ITG's short term assets ($729.0M) exceeds its short term liabilities ($530.2M)

Long Term Liabilities: ITG's short term assets (729.0M) exceeds its long term liabilities (3.5M)


Debt to Equity History and Analysis

Debt Level: ITG's debt to equity ratio (22.6%) is considered satisfactory

Reducing Debt: ITG's debt to equity ratio has reduced from 256.2% to 22.6% over the past 5 years.


Balance Sheet

Information is not available.

Information is not available.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ITG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ITG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.1% per year.


Next Steps

Dividend

What is Investment Technology Group's current dividend yield, its reliability and sustainability?

0.93%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ITG's dividend (0.93%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: ITG's dividend (0.93%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: Whilst dividend payments have been stable, ITG has been paying a dividend for less than 10 years.

Growing Dividend: ITG has only been paying a dividend for 4 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: ITG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Frank Troise (52yo)

3.2yrs

Tenure

US$4,353,427

Compensation

Mr. Francis J. Troise, also known as Frank, has been the Chief Executive Officer and President of Investment Technology Group, Inc. since joining in January 15, 2016. Mr. Troise served as the Head of J.P.  ...


CEO Compensation Analysis

Information is not available.

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.6yrs

Average Tenure

50yo

Average Age

Experienced Management: ITG's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

55yo

Average Age

Experienced Board: ITG's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: ITG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$49,60721 Dec 18
Timothy Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,653
Max PriceUS$30.01
SellUS$280,74819 Dec 18
Steven Wood
EntityIndividual
Role
Member of the Board of Directors
Director
Shares9,354
Max PriceUS$30.01
SellUS$152,01319 Dec 18
Timothy Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,060
Max PriceUS$30.04

Ownership Breakdown


Management Team

  • Steve Vigliotti (50yo)

    MD, CFO & Chief Administrative Officer

    • Tenure: 9.1yrs
    • Compensation: US$1.36m
  • Angelo Bulone (52yo)

    MD, Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Peter Goldstein (54yo)

    MD & Global Head of Human Resources

    • Tenure: 11.4yrs
  • Frank Troise (52yo)

    CEO, President & Director

    • Tenure: 3.2yrs
    • Compensation: US$4.35m
  • Rob Boardman (50yo)

    MD & CEO of European Operations

    • Tenure: 8.8yrs
    • Compensation: US$1.46m
  • Etienne Phaneuf (44yo)

    MD & CEO of Canada Operations

    • Tenure: 3.7yrs
    • Compensation: US$1.35m
  • Angélique F. Desanto (43yo)

    MD, General Counsel & Secretary

    • Tenure: 3.6yrs
  • Tom Shpetner

    Global Chief Compliance Officer

    • Tenure: 2.9yrs
  • Heather Evans (59yo)

    CMO & MD

    • Tenure: 3.2yrs
  • Brian Pomraning (43yo)

    MD & Global Head of Product Management

    • Tenure: 2.2yrs
    • Compensation: US$1.05m

Board Members

  • Kevin Lynch (49yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$164.94k
  • Robert Lilien (56yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$169.44k
  • Timothy Jones (62yo)

    Director

    • Tenure: 14yrs
    • Compensation: US$169.94k
  • Brian Cartwright (70yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$169.94k
  • Minder Cheng (54yo)

    Chairman of the Board

    • Tenure: 3.2yrs
    • Compensation: US$243.96k
  • Frank Troise (52yo)

    CEO, President & Director

    • Tenure: 3.2yrs
    • Compensation: US$4.35m
  • Steve Wood (60yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$177.00k
  • Lee Shavel (51yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$179.94k

Company Information

Investment Technology Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investment Technology Group, Inc.
  • Ticker: ITG
  • Exchange: NYSE
  • Founded: 1983
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: US$999.768m
  • Shares outstanding: 33.07m
  • Website: https://www.itg.com

Number of Employees


Location

  • Investment Technology Group, Inc.
  • One Liberty Plaza
  • 165 Broadway
  • New York
  • New York
  • 10006
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITGNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1983
IVYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1983

Biography

Investment Technology Group, Inc. operates as a financial technology company in the United States, Canada, Europe, and the Asia Pacific. The company offers various solutions for asset managers and broker-d ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/02 23:37
End of Day Share Price2019/02/28 00:00
Earnings2018/09/30
Annual Earnings2017/12/31


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.