Investors Title Company (ITIC) AI Stock Analysis

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Investors Title Company

(NASDAQ:ITIC)

69Neutral

Investors Title Company has a strong financial foundation with high equity and no debt, which is impressive for the insurance sector. However, declining revenue and net income since 2021 signal potential growth challenges. Technically, the stock is neutral with a slight bearish bias. In terms of valuation, it is reasonably priced with a modest dividend yield. These factors combine to form a moderate investment opportunity with some room for improvement in earnings growth.

Investors Title Company (ITIC) vs. S&P 500 (SPY)

Market Cap

$475.72M

Dividend Yield0.74%

Average Volume (3M)18.23K

Price to Earnings (P/E)15.8

Beta (1Y)0.69

Revenue Growth15.22%

EPS Growth19.19%

CountryUS

Employees521

SectorFinancial

Sector Strength87

IndustryInsurance - Specialty

Share Statistics

EPS (TTM)1.67

Shares Outstanding1,886,268

10 Day Avg. Volume36,229

30 Day Avg. Volume18,229

Financial Highlights & Ratios

PEG Ratio1.60

Price to Book (P/B)1.76

Price to Sales (P/S)0.00

P/FCF Ratio19.77

Enterprise Value/Market Cap0.89

Enterprise Value/Revenue0.44

Enterprise Value/Gross Profit1.65

Enterprise Value/Ebitda6.53

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Investors Title Company Business Overview & Revenue Model

Company DescriptionInvestors Title Company (ITIC) is a leading provider in the title insurance industry, offering comprehensive title insurance policies and related services for real estate transactions. The company operates primarily in the United States, delivering services that protect property buyers and mortgage lenders against potential losses from defects in titles. ITIC also provides a range of ancillary services, including escrow and closing services, facilitating smooth and secure real estate transactions.

How the Company Makes MoneyInvestors 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

Positive

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

Positive

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

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
258.30M	224.75M	283.39M	329.50M	236.41M
	Gross Profit
258.30M	224.75M	283.39M	329.50M	236.41M
	EBIT
39.46M	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
-18.30M	-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
22.42M	-1.76M	30.52M	45.40M	30.89M
	Operating Cash Flow
29.84M	7.43M	36.20M	51.93M	34.09M
	Investing Cash Flow
1.75M	-6.70M	-28.75M	9.07M	-14.60M
	Financing Cash Flow
-30.96M	-12.01M	-9.31M	-37.55M	-31.72M

Investors Title Company Technical Analysis

Technical Analysis Sentiment

Positive

Last Price248.85

Price Trends

50DMA

235.60

Positive

100DMA

232.54

Positive

200DMA

230.10

Positive

Market Momentum

MACD

3.88

Negative

RSI

64.91

Neutral

STOCH

89.63

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 248.85 is above the 20-day moving average (MA) of 237.38, above the 50-day MA of 235.60, and above the 200-day MA of 230.10, indicating a bullish trend. The MACD of 3.88 indicates Negative momentum. The RSI at 64.91 is Neutral, neither overbought nor oversold. The STOCH value of 89.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITIC.

Investors Title Company Risk Analysis

Investors Title Company disclosed 24 risk factors in its most recent earnings report. Investors Title Company reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Investors Title Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTG	79 Outperform	$6.34B	8.94	15.12%	1.88%	4.64%	15.36%
RDN	78 Outperform	$4.68B	8.86	13.22%	2.84%	2.95%	4.08%
ITIC	69 Neutral	$475.72M	15.84	11.69%	0.74%	15.22%	19.19%
FAF	66 Neutral	$6.27B	40.22	3.23%	3.53%	0.96%	-27.04%
FNF	64 Neutral	$16.00B	14.39	14.72%	3.36%	4.40%	33.32%
Sector *	64 Neutral	$12.82B	9.87	7.67%	17000.34%	12.39%	-5.85%
MBI	28 Underperform	$230.70M	―	26.69%	―	583.33%	6.59%

* Financial Sector Average

Performance Comparison

ITIC

Investors Title Company

252.20

95.67

61.12%

FNF

Fidelity National Financial

58.01

6.94

13.59%

FAF

First American Financial

61.02

5.24

9.39%

MBI

MBIA

4.58

-1.28

-21.84%

MTG

MGIC Investment

26.70

6.18

30.12%

RDN

Radian Group

34.39

3.87

12.68%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.