Investors Title Company (ITIC) AI Stock Analysis

• Market Cap: $445.09M
• Dividend Yield: 0.78%
• Average Volume (3M): 7.39K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.80
• Revenue Growth: 14.93%
• EPS Growth: 43.88%
• Country: US
• Employees: 521
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Specialty
• EPS (TTM): 16.43
• Shares Outstanding: 1,885,978
• 10 Day Avg. Volume: 6,124
• 30 Day Avg. Volume: 7,388
• PEG Ratio: 0.33
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.73
• Price to Cash Flow (P/CF): 9.20
• P/FCF Ratio: 9.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Investors Title Company presents a solid investment case with strong financial stability due to a robust balance sheet and no debt, which is a standout feature in the insurance industry. While the technical analysis shows positive momentum, attention should be given to potential overbought signals. The valuation appears fair, with a reasonable P/E ratio and a modest dividend yield. However, the company faces challenges in reversing its declining revenue and net income trends.

Investors Title Company Business Overview & Revenue Model

Company Description

Investors Title Company, through its subsidiaries, engages in the issuance of residential and commercial 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 24 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.

How the Company Makes Money

Investors Title Company makes money primarily through the issuance of title insurance policies. These policies are purchased during real estate transactions to protect against financial loss from defects in the title of a property. ITIC earns revenue from premiums paid by property buyers and lenders at the time of closing. Additionally, the company generates income from its escrow and closing services, which involve fees for managing the settlement process of real estate transactions. The company's earnings are also supported by strategic partnerships with real estate agents, lenders, and law firms, which help expand its customer base and drive business growth.

Investors Title Company Financial Statement Overview

Summary

Investors Title Company shows strong financial stability, marked by high equity and no debt in the most recent period, which is exceptional for the insurance industry. However, declining revenue and net income trends since 2021 present challenges. The company must address revenue growth to maintain its strong financial position. Overall, the financial health is solid, but there are areas for improvement in earnings and cash flow consistency.

Income Statement

The company's income statement shows fluctuating revenue with a notable decline in 2023 and 2024 compared to previous years. Despite this, the company maintains strong profitability with a high gross profit margin due to controlled costs. However, net income peaked in 2021 and has since decreased, indicating potential challenges in sustaining growth.

Balance Sheet

The balance sheet is robust, with zero debt in 2024, indicating prudent financial management and low leverage. The equity ratio is high, reflecting strong capitalization. The consistent growth in stockholders' equity is a positive sign of financial health and stability.

Cash Flow

The cash flow statement reveals some volatility, with a significant drop in free cash flow in 2023. Nonetheless, the company has returned to positive free cash flow in 2024. Operating cash flow remains positive, supporting the company's ability to fund operations and investments without relying on external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
258.30M	224.75M	283.39M	329.50M	236.41M
	Gross Profit
5.49M	224.75M	283.39M	329.50M	236.41M
	EBIT
2.96M	26.23M	30.11M	80.16M	49.04M
	EBITDA
2.96M	30.35M	33.69M	87.37M	51.92M
	Net Income Common Stockholders
31.07M	21.69M	23.90M	67.02M	39.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
137.63M	198.10M	192.95M	162.89M	146.61M
	Total Assets
333.57M	330.56M	339.76M	331.49M	282.93M
	Total Debt
6.36M	6.45M	6.84M	5.33M	3.67M
	Net Debt
-24.65M	-17.58M	-28.47M	-31.84M	-10.05M
	Total Liabilities
81.80M	79.01M	98.75M	102.40M	82.50M
	Stockholders Equity
251.77M	251.55M	241.01M	229.09M	200.42M
Cash Flow		Free Cash Flow
407.00K	-1.76M	30.52M	45.40M	30.89M
	Operating Cash Flow
407.00K	7.43M	36.20M	51.93M	34.09M
	Investing Cash Flow
27.85M	-6.70M	-28.75M	9.07M	-14.60M
	Financing Cash Flow
-31.41M	-12.01M	-9.31M	-37.55M	-31.72M

Investors Title Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 224.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITIC, the sentiment is Negative. The current price of 224.42 is below the 20-day moving average (MA) of 236.90, below the 50-day MA of 232.60, and above the 200-day MA of 222.79, indicating a neutral trend. The MACD of 2.63 indicates Positive momentum. The RSI at 54.64 is Neutral, neither overbought nor oversold. The STOCH value of 36.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITIC.

Investors Title Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDN	77 Outperform	$4.56B	8.24	13.40%	3.06%	3.79%	3.86%
ITIC	76 Outperform	$445.09M	14.37	12.35%	0.78%	14.93%	43.88%
STC	72 Outperform	$1.87B	25.60	5.29%	2.96%	10.33%	137.93%
ORLY	70 Outperform	$77.19B	33.77	-174.09%	―	5.67%	5.40%
FNF	68 Neutral	$16.81B	13.14	17.32%	3.21%	16.32%	144.11%
FAF	68 Neutral	$6.32B	48.75	2.69%	3.51%	-2.03%	-39.52%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%