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.


Snowflake Analysis

Flawless 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.2%

ITIC

-2.0%

US Insurance

1.7%

US Market


1 Year Return

-28.5%

ITIC

-22.3%

US Insurance

6.0%

US Market

Return vs Industry: ITIC underperformed the US Insurance industry which returned -20.7% over the past year.

Return vs Market: ITIC underperformed the US Market which returned 7.4% over the past year.


Shareholder returns

ITICIndustryMarket
7 Day-0.2%-2.0%1.7%
30 Day-20.7%-10.3%-0.5%
90 Day-10.7%3.2%17.8%
1 Year-24.0%-28.5%-20.3%-22.3%8.2%6.0%
3 Year-27.7%-37.6%-1.8%-9.8%36.3%27.4%
5 Year92.8%64.2%24.7%9.1%63.0%45.0%

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?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ITIC ($116.15) is trading below our estimate of fair value ($212.1)

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 (12.3x) compared to the Insurance industry average (13.4x).

PE vs Market: ITIC is good value based on its PE Ratio (12.3x) compared to the US market (16.5x).


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 (1.2x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

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

20.7%

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?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ITIC has high quality earnings.

Growing Profit Margin: ITIC's current net profit margins (10.3%) are lower than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: ITIC's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: ITIC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ITIC had negative earnings growth (-26.7%) over the past year, making it difficult to compare to the Insurance industry average (-1.9%).


Return on Equity

High ROE: ITIC's Return on Equity (9.7%) 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 ($64.6M) exceed its short term liabilities ($63.2M).

Long Term Liabilities: ITIC's short term assets ($64.6M) exceed its long term liabilities ($7.3M).


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?

8.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ITIC's dividend (8.4%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ITIC's dividend (8.4%) is in the top 25% of dividend payers in the US market (4.49%)


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 (17.4%), ITIC's dividend payments are well 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?

23.5yrs

Average management tenure


CEO

James Fine (85yo)

47.17yrs

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 ($USD1.25M) is about average for companies of similar size in the US market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Fine
Chairman & CEO47.17yrsUS$1.25m10.39% $22.8m
James Fine
President23.17yrsUS$1.18m4.41% $9.7m
William Fine
Executive VP21.17yrsUS$1.19m4.43% $9.7m
L. Martin
Vice President of Corporate Administration & Investor Relations Officer29.5yrsno 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 Technology1.17yrsno datano data
Carol Hayden
VP of Senior Claims Counsel & Executive VP of Investors Title Exchange Corp3.92yrsno datano data

23.5yrs

Average Tenure

55yo

Average Age

Experienced Management: ITIC's management team is seasoned and experienced (23.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Fine
Chairman & CEO47.17yrsUS$1.25m10.39% $22.8m
James Fine
President23.17yrsUS$1.18m4.41% $9.7m
William Fine
Executive VP21.17yrsUS$1.19m4.43% $9.7m
James Morton
Independent Director35.17yrsUS$72.11k0.70% $1.5m
David Francis
Independent Director38.17yrsUS$76.61k0.33% $724.8k
James Speed
Independent Director10.17yrsUS$72.86k0.074% $162.7k
Richard Hutson
Lead Independent Directorno dataUS$72.86k0.17% $375.8k
Tammy Coley
Independent Director0.42yrno datano data
Elton Parker
Independent Director0.42yrno data0.11% $232.3k

22.2yrs

Average Tenure

68yo

Average Age

Experienced Board: ITIC's board of directors are seasoned and experienced ( 22.2 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$219.661m
  • 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 and mortgagees as a primary insurer; and assumes the reinsurance of title insurance risks from other title insurance companies. It also provides services in connection with tax-deferred exchanges of like-kind property; acts as a qualified intermediary in tax-deferred exchanges of property; coordinates the exchange aspects of the real estate transaction, such as drafting standard exchange documents, holding the exchange funds between the sale of the old property and the purchase of the new property, and accepting the formal identification of the replacement property. In addition, it serves as an exchange accommodation titleholder for accomplishing reverse exchanges when the taxpayers decide to acquire replacement property before selling the relinquished property. Further, the company offers investment management and trust services to individuals, companies, banks, and trusts; and consulting and management services to clients to start and operate a title insurance agency. It issues title insurance policies primarily through approved attorneys from underwriting offices, as well as through independent issuing agents in 23 states and the District of Columbia, primarily in the eastern half of the United States. The company was founded in 1972 and is headquartered in Chapel Hill, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/08 00:03
End of Day Share Price2020/07/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.