NasdaqGS:ITIC

Stock Analysis Report

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Executive Summary

Investors Title Company, through its subsidiaries, provides title insurance for residential, institutional, commercial, and industrial properties. More Details


Snowflake Analysis

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Investors Title's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ITIC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ITIC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

5.3%

ITIC

3.1%

US Insurance

-0.4%

US Market


1 Year Return

4.9%

ITIC

14.8%

US Insurance

36.2%

US Market

Return vs Industry: ITIC underperformed the US Insurance industry which returned 14.8% over the past year.

Return vs Market: ITIC underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

ITICIndustryMarket
7 Day5.3%3.1%-0.4%
30 Day1.8%6.4%-2.3%
90 Day1.2%8.4%5.0%
1 Year15.4%4.9%17.9%14.8%39.1%36.2%
3 Year2.3%-17.8%22.1%13.0%48.4%39.0%
5 Year132.1%81.8%74.3%52.6%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is Investors Title's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Investors Title undervalued compared to its fair value and its price relative to the market?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ITIC ($159.8) is trading below our estimate of fair value ($271.3)

Significantly Below Fair Value: ITIC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ITIC is good value based on its PE Ratio (7.7x) compared to the US Insurance industry average (14.8x).

PE vs Market: ITIC is good value based on its PE Ratio (7.7x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ITIC is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (1x).


Next Steps

Future Growth

How is Investors Title forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.0%

Forecasted Insurance industry annual growth in earnings


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 Investors Title 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 SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Investors Title performed over the past 5 years?

14.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITIC has high quality earnings.

Growing Profit Margin: ITIC's current net profit margins (16.7%) are lower than last year (17.1%).


Past Earnings Growth Analysis

Earnings Trend: ITIC's earnings have grown by 14.5% per year over the past 5 years.

Accelerating Growth: ITIC's earnings growth over the past year (25.9%) exceeds its 5-year average (14.5% per year).

Earnings vs Industry: ITIC earnings growth over the past year (25.9%) exceeded the Insurance industry -12.7%.


Return on Equity

High ROE: ITIC's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Investors Title's financial position?


Financial Position Analysis

Short Term Liabilities: ITIC's short term assets ($58.8M) do not cover its short term liabilities ($70.2M).

Long Term Liabilities: ITIC's short term assets ($58.8M) exceed its long term liabilities ($12.3M).


Debt to Equity History and Analysis

Debt Level: ITIC is debt free.

Reducing Debt: ITIC has not had any debt for past 5 years.

Debt Coverage: ITIC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ITIC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Investors Title current dividend yield, its reliability and sustainability?

10.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITIC's dividend (10.49%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: ITIC's dividend (10.49%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

Stable Dividend: ITIC's dividend payments have been volatile in the past 10 years.

Growing Dividend: ITIC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.4%), ITIC's dividend payments are thoroughly covered by earnings.


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

How experienced are the management team and are they aligned to shareholders interests?

24.2yrs

Average management tenure


CEO

James Fine (85 yo)

47.83yrs

Tenure

US$1,252,779

Compensation

Mr. James Allen Fine Founded Investors Title Co. in 1973 and since has been its Chairman and Chief Executive Officer since 1973. Mr. Fine serves as the Chief Executive Officer of Northeast Investors Title ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD1.25M) is about average for companies of similar size in the US market ($USD1.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Fine
Chairman & CEO47.83yrsUS$1.25m10.38%
$ 31.4m
James Fine
President23.83yrsUS$1.18m4.41%
$ 13.3m
William Fine
Executive VP21.83yrsUS$1.19m4.43%
$ 13.4m
L. Martin
Vice President of Corporate Administration & Investor Relations Officer30.17yrsno datano data
Elizabeth Lewter
Vice President & Controllerno datano datano data
Mitchell Ward
Vice President of Human Resourcesno datano datano data
Valerie Weston
Human Resources Directorno datano datano data
C. Murphy
Senior Vice President of Financeno datano datano data
Daniel Minto
Senior Vice President of Engineering & Information Technology1.83yrsno datano data
Thomas Berry
Executive Vice President of Market Development0.67yrno datano data
Carol Hayden
VP of Senior Claims Counsel & Executive VP of Investors Title Exchange Corp4.58yrsno datano data

24.2yrs

Average Tenure

55yo

Average Age

Experienced Management: ITIC's management team is seasoned and experienced (24.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Fine
Chairman & CEO47.83yrsUS$1.25m10.38%
$ 31.4m
James Fine
President23.83yrsUS$1.18m4.41%
$ 13.3m
William Fine
Executive VP21.83yrsUS$1.19m4.43%
$ 13.4m
James Morton
Independent Director35.83yrsUS$72.11k0.72%
$ 2.2m
David Francis
Independent Director38.83yrsUS$76.61k0.35%
$ 1.1m
James Speed
Independent Director10.83yrsUS$72.86k0.097%
$ 293.2k
Richard Hutson
Lead Independent Directorno dataUS$72.86k0.19%
$ 586.3k
Tammy Coley
Independent Director1.08yrsno data0%
$ 0
Elton Parker
Independent Director1.08yrsno data0.11%
$ 319.6k

22.8yrs

Average Tenure

68yo

Average Age

Experienced Board: ITIC's board of directors are seasoned and experienced ( 22.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Investors Title Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investors Title Company
  • Ticker: ITIC
  • Exchange: NasdaqGS
  • Founded: 1972
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$302.407m
  • Shares outstanding: 1.89m
  • Website: https://www.invtitle.com

Number of Employees


Location

  • Investors Title Company
  • 121 North Columbia Street
  • Chapel Hill
  • North Carolina
  • 27514
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ITICNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1986

Biography

Investors Title Company, through its subsidiaries, provides title insurance for residential, institutional, commercial, and industrial properties. The company underwrites land title insurance for owners an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:19
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.