Investors Title Company (ITIC) AI Stock Analysis

• Market Cap: $526.46M
• Dividend Yield: 5.62%
• Average Volume (3M): 24.80K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.63
• 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: 21,286
• 30 Day Avg. Volume: 24,798
• 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: 0.98
• Enterprise Value/Revenue: 2.56
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: 16.21
• 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: 80 Outperform
• Price Target: $319.00 ▲(13.11% Upside)

Investors Title Company scores well due to its strong financial performance, robust technical indicators, and attractive valuation. The company's solid balance sheet and high dividend yield are significant strengths. The lack of earnings call data and corporate events does not detract from the overall positive outlook.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio highlights the company's strong financial stability and low leverage risk, ensuring resilience against economic fluctuations.

Cash Generation Ability

Strong free cash flow growth demonstrates the company's ability to generate cash efficiently, providing flexibility for investments and growth.

Negative Factors

Declining Gross Profit Margin

A significant decline in gross profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability.

Operating Cash Flow Concerns

The lack of operating cash flow coverage suggests potential issues in converting income into cash, which could affect liquidity and operational flexibility.

Profit Margin Sustainability

Decreasing net profit margins may reflect challenges in maintaining cost efficiency and pricing power, impacting future earnings potential.

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 are typically required during real estate transactions to safeguard against losses arising from defects in title, liens, or other encumbrances. The company earns premiums from these policies, which can vary based on the property's value and the risk assessed. Additionally, ITIC may charge fees for services such as title searches, examinations, and closing services, which contribute to its revenue streams. The company may also establish partnerships with real estate agents, mortgage lenders, and other industry stakeholders, enhancing its market reach and facilitating a steady flow of business. Overall, ITIC's earnings are driven by the volume of real estate transactions in its operating regions and its ability to maintain strong relationships with key partners in the real estate ecosystem.

Investors Title Company Financial Statement Overview

Summary

Investors Title Company demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage and high equity, ensuring financial stability. Cash flow generation is strong, although the conversion of income to cash needs attention. Overall, the company is well-positioned financially, with some areas for improvement in operational cash flow management.

Income Statement

Investors Title Company shows a strong revenue growth rate of 1.55% TTM, indicating a positive trajectory in revenue generation. The gross profit margin of 26.11% and net profit margin of 13.15% TTM reflect solid profitability, although these margins have decreased compared to previous years. The EBIT and EBITDA margins are stable, suggesting efficient operational management. However, the decline in gross profit margin from 56.69% in 2024 to 26.11% TTM is a concern.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.027 TTM, indicating strong financial stability and low leverage risk. The return on equity of 13.72% TTM is healthy, showcasing effective use of equity to generate profits. The equity ratio of 76.52% TTM highlights a strong capital structure with significant equity backing. Overall, the balance sheet reflects a robust financial position with minimal debt concerns.

Cash Flow

Free cash flow growth of 61.24% TTM is impressive, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is 0.0 TTM, which may suggest issues in converting income into cash. The free cash flow to net income ratio of 79.25% TTM is solid, reflecting efficient cash management. Despite strong free cash flow growth, the lack of operating cash flow coverage is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.84M	258.30M	224.75M	283.39M	329.50M	236.41M
Gross Profit	174.62M	146.43M	136.61M	157.57M	181.00M	124.40M
EBITDA	31.77M	43.96M	30.35M	33.69M	87.37M	51.92M
Net Income	23.81M	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	142.07M	196.73M	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	32.51M	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: 282.02
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 282.02 is above the 20-day moving average (MA) of 274.02, above the 50-day MA of 266.94, and above the 200-day MA of 237.46, indicating a bullish trend. The MACD of 3.10 indicates Positive momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 71.64 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
ITIC	80 Outperform	$526.46M	14.67	13.12%	5.62%	13.47%	26.15%
NMIH	79 Outperform	$2.93B	7.97	16.17%	―	8.86%	9.51%
FAF	77 Outperform	$6.70B	14.13	9.28%	3.47%	25.99%	426.44%
FNF	74 Outperform	$16.13B	13.84	14.22%	3.51%	3.91%	55.78%
AGO	73 Outperform	$4.15B	11.04	7.06%	1.51%	7.56%	-38.23%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
EIG	67 Neutral	$843.64M	14.77	5.86%	3.18%	1.69%	-52.43%

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.