Investors Title Co (ITIC) stock analysis

P/E above its 5-year median

Investors Title's P/E of 13.3 is above its own 5-year median of 13.2.

P/E above the industry

Investors Title's P/E of 13.3 is above the Insurance Carriers median of 11.2.

P/S above the industry

Investors Title's price-to-sales of 1.65 is above the Insurance Carriers median of 1.16.

P/B above the industry

Investors Title's price-to-book of 1.69 is above the Insurance Carriers median of 1.57.

Trading above fair value

The share price of $263.31 is above our fair value estimate of $241.33.

Margin of safety under 20%

The price is 9.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -1.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 13.8% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 4.5% over the last twelve months, against a 5-year average of -2.3% a year.

Growing faster than the industry

Revenue grew 10.2% over the last twelve months; the Insurance Carriers median is 6.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 13.2% over the last twelve months and averaged 15.2% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 9.9%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Investors Title's return on equity of 13.2% is below the Insurance Carriers median of 14.0%.

Earnings shrank over 5 years

Net income shrank 2.3% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 12.5% over the last twelve months, against a 5-year average of 12.7%.

Net margin above the industry

Investors Title's net margin of 12.5% is above the Insurance Carriers median of 10.6%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Investors Title paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Investors Title yields 4.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 52.9% of net income.

Covered by free cash flow

Dividends take 85.6% of free cash flow.