Investors Title Company (ITIC) AI Stock Analysis

• Market Cap: $533.99M
• Dividend Yield: 5.71%
• Average Volume (3M): 30.56K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.66
• Revenue Growth: 13.47%
• EPS Growth: 26.15%
• Country: US
• Employees: 521
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Specialty
• EPS (TTM): 6.45
• Shares Outstanding: 1,887,574
• 10 Day Avg. Volume: 27,241
• 30 Day Avg. Volume: 30,558
• PEG Ratio: 0.33
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 1.73
• P/FCF Ratio: 19.91
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 7.20
• Enterprise Value/Ebitda: 10.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $298.00 ▲(12.42% Upside)

Investors Title Company demonstrates strong financial stability with zero debt and high equity, which is a significant strength. The technical indicators suggest a stable outlook, while the valuation metrics, including a reasonable P/E ratio and attractive dividend yield, enhance the stock's appeal. However, the declining revenue and net income trends since 2021 are areas of concern that need to be addressed to sustain long-term growth.

Investors Title Company Business Overview & Revenue Model

Company Description

Investors Title Company (ITIC) is a leading provider of title insurance and related services in the real estate sector. Established to protect property buyers and lenders from potential title defects, ITIC specializes in title examination, insurance underwriting, and escrow services. The company operates across various markets, serving both residential and commercial clients, ensuring secure and smooth real estate transactions through its comprehensive offerings.

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 zero debt and high equity, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	273.87M	258.30M	224.75M	283.39M	329.50M	236.41M
Gross Profit	71.52M	146.43M	224.75M	283.39M	329.50M	236.41M
EBITDA	46.86M	43.96M	30.35M	33.69M	87.37M	51.92M
Net Income	36.02M	31.07M	21.69M	23.90M	67.02M	39.42M
Balance Sheet
Total Assets	363.32M	333.57M	330.56M	339.76M	331.49M	282.93M
Cash, Cash Equivalents and Short-Term Investments	133.86M	137.63M	198.10M	192.95M	162.89M	146.61M
Total Debt	7.62M	6.36M	6.45M	6.84M	5.33M	3.67M
Total Liabilities	85.31M	81.80M	79.01M	98.75M	102.40M	82.50M
Stockholders Equity	278.01M	251.77M	251.55M	241.01M	229.09M	200.42M
Cash Flow
Free Cash Flow	36.74M	22.42M	-1.76M	30.52M	45.40M	30.89M
Operating Cash Flow	38.09M	29.84M	7.43M	36.20M	51.93M	34.09M
Investing Cash Flow	-10.93M	1.75M	-6.70M	-28.75M	9.07M	-14.60M
Financing Cash Flow	-29.87M	-30.96M	-12.01M	-9.31M	-37.55M	-31.72M

Investors Title Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 265.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 265.07 is above the 20-day moving average (MA) of 263.91, above the 50-day MA of 260.05, and above the 200-day MA of 233.92, indicating a bullish trend. The MACD of 3.84 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 77.88 is Neutral, 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
NMIH	82 Outperform	$2.86B	7.54	16.17%	―	8.86%	9.51%
ITIC	75 Outperform	$533.99M	14.88	13.12%	5.71%	13.47%	26.15%
EIG	72 Outperform	$843.64M	14.77	5.86%	3.04%	1.69%	-52.43%
AGO	71 Outperform	$3.90B	8.92	8.38%	1.62%	5.89%	-27.45%
FNF	69 Neutral	$14.83B	12.70	14.22%	3.51%	3.92%	55.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FAF	60 Neutral	$6.20B	13.07	9.28%	3.47%	25.99%	426.44%

Investors Title Company Corporate Events

Investors Title Reports Strong Q3 Earnings Growth

Investors Title Company is a North Carolina-based firm specializing in title insurance and exchange services, operating primarily in the real estate sector. The company is known for its comprehensive title insurance policies and its role as an intermediary in tax-deferred property exchanges.