Investors Title Company (ITIC) AI Stock Analysis

• Market Cap: $451.13M
• Dividend Yield: 6.48%
• Average Volume (3M): 51.51K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.74
• Revenue Growth: 15.28%
• EPS Growth: 26.05%
• Country: US
• Employees: 521
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Specialty
• EPS (TTM): 6.48
• Shares Outstanding: 1,887,574
• 10 Day Avg. Volume: 34,078
• 30 Day Avg. Volume: 51,508
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 9.55
• 1Y Price Target: $239.00
• Price Target Upside: -2.29% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $239.00 ▼(-2.29% Downside)

Investors Title Company demonstrates a strong financial foundation with no debt and high equity, which is the most significant factor in its favor. Despite challenges in revenue and net income trends, the stock's attractive valuation with a low P/E ratio and high dividend yield provide additional support. Technical indicators suggest moderate bullish momentum, though longer-term trends remain cautious.

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

ITIC generates revenue primarily through the sale of title insurance policies, which protect property buyers and lenders from financial loss due to defects in a property’s title. The company earns premiums for these policies, which vary based on the property value and the complexity of the title issues. Additionally, ITIC provides related services such as title searches, document preparation, and escrow services, which contribute to its revenue. The company may also engage in partnerships with real estate agents, mortgage lenders, and other stakeholders in the real estate industry, enhancing its market reach and driving sales. Other potential revenue streams could include investment income from reserves held for claims and other financial services related to real estate transactions, though specific figures or details on partnerships are not disclosed.

Investors Title Company Financial Statement Overview

Summary

Investors Title Company exhibits strong financial stability with no debt and high equity, which is exceptional for the insurance industry. However, declining revenue and net income trends pose challenges. Despite this, the company maintains robust profitability and a solid balance sheet, though improvements in revenue growth and cash flow consistency are needed.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	261.40M	258.30M	224.75M	283.39M	329.50M	236.41M
Gross Profit	235.18M	146.43M	224.75M	283.39M	329.50M	236.41M
EBITDA	42.74M	43.96M	30.35M	33.69M	87.37M	51.92M
Net Income	29.72M	31.07M	21.69M	23.90M	67.02M	39.42M
Balance Sheet
Total Assets	333.78M	333.57M	330.56M	339.76M	331.49M	282.93M
Cash, Cash Equivalents and Short-Term Investments	129.32M	137.63M	198.10M	192.95M	162.89M	146.61M
Total Debt	8.37M	6.36M	6.45M	6.84M	5.33M	3.67M
Total Liabilities	79.37M	81.80M	79.01M	98.75M	102.40M	82.50M
Stockholders Equity	254.41M	251.77M	251.55M	241.01M	229.09M	200.42M
Cash Flow
Free Cash Flow	21.80M	22.42M	-1.76M	30.52M	45.40M	30.89M
Operating Cash Flow	28.33M	29.84M	7.43M	36.20M	51.93M	34.09M
Investing Cash Flow	7.57M	1.75M	-6.70M	-28.75M	9.07M	-14.60M
Financing Cash Flow	-29.91M	-30.96M	-12.01M	-9.31M	-37.55M	-31.72M

Investors Title Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 244.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITIC, the sentiment is Positive. The current price of 244.61 is above the 20-day moving average (MA) of 215.99, above the 50-day MA of 209.59, and above the 200-day MA of 230.35, indicating a bullish trend. The MACD of 6.66 indicates Negative momentum. The RSI at 77.46 is Negative, neither overbought nor oversold. The STOCH value of 97.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITIC.

Investors Title Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDN	78 Outperform	$4.69B	8.73	13.07%	2.84%	0.24%	3.14%
MTG	75 Outperform	$6.34B	9.02	14.85%	1.95%	3.26%	12.70%
FNF	73 Outperform	$16.30B	15.20	14.20%	3.24%	7.25%	17.55%
ITIC	72 Outperform	$451.13M	13.67	12.55%	6.48%	15.28%	26.05%
FAF	60 Neutral	$6.56B	35.60	3.80%	3.27%	14.28%	-2.87%
Sector *	58 Neutral	HK$111.71B	6.60	-4.20%	3.95%	9.04%	-46.99%
MBI	28 Underperform	$321.11M	―	26.69%	―	―	66.83%

Investors Title Company Corporate Events

Investors Title Company Holds Annual Shareholder Meeting

On May 21, 2025, Investors Title Company held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders elected directors for three-year terms, approved executive compensation, decided on a triennial advisory vote for executive pay, and ratified Forvis Mazars, LLP as the independent auditor for 2025. These decisions reflect the company’s ongoing governance practices and commitment to aligning executive compensation with shareholder interests.