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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.01
ITC's Cash to Debt is ranked higher than
50% of the 752 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 0.16 vs. ITC: 0.01 )
ITC' s 10-Year Cash to Debt Range
Min: 0   Max: No Debt
Current: 0.01

Equity to Asset 0.26
ITC's Equity to Asset is ranked higher than
58% of the 751 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 0.35 vs. ITC: 0.26 )
ITC' s 10-Year Equity to Asset Range
Min: 0.18   Max: 0.6
Current: 0.26

0.18
0.6
Interest Coverage 2.95
ITC's Interest Coverage is ranked higher than
68% of the 497 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.60 vs. ITC: 2.95 )
ITC' s 10-Year Interest Coverage Range
Min: 0.41   Max: 1121.79
Current: 2.95

0.41
1121.79
F-Score: 5
Z-Score: 1.14
M-Score: -2.52
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 52.70
ITC's Operating margin (%) is ranked higher than
98% of the 762 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 12.20 vs. ITC: 52.70 )
ITC' s 10-Year Operating margin (%) Range
Min: 8.58   Max: 52.7
Current: 52.7

8.58
52.7
Net-margin (%) 24.81
ITC's Net-margin (%) is ranked higher than
95% of the 762 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 6.86 vs. ITC: 24.81 )
ITC' s 10-Year Net-margin (%) Range
Min: -7.87   Max: 31.42
Current: 24.81

-7.87
31.42
ROE (%) 14.47
ITC's ROE (%) is ranked higher than
93% of the 761 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 7.91 vs. ITC: 14.47 )
ITC' s 10-Year ROE (%) Range
Min: -4.21   Max: 14.47
Current: 14.47

-4.21
14.47
ROA (%) 3.72
ITC's ROA (%) is ranked higher than
83% of the 769 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.78 vs. ITC: 3.72 )
ITC' s 10-Year ROA (%) Range
Min: -1.07   Max: 6.81
Current: 3.72

-1.07
6.81
ROC (Joel Greenblatt) (%) 10.24
ITC's ROC (Joel Greenblatt) (%) is ranked higher than
83% of the 764 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 7.81 vs. ITC: 10.24 )
ITC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 1.91   Max: 14.97
Current: 10.24

1.91
14.97
Revenue Growth (%) 9.10
ITC's Revenue Growth (%) is ranked higher than
85% of the 640 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 4.20 vs. ITC: 9.10 )
ITC' s 10-Year Revenue Growth (%) Range
Min: 0   Max: 33.8
Current: 9.1

0
33.8
EBITDA Growth (%) 10.30
ITC's EBITDA Growth (%) is ranked higher than
89% of the 615 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.90 vs. ITC: 10.30 )
ITC' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 48.8
Current: 10.3

0
48.8
EPS Growth (%) 15.80
ITC's EPS Growth (%) is ranked higher than
88% of the 562 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.60 vs. ITC: 15.80 )
ITC' s 10-Year EPS Growth (%) Range
Min: 0   Max: 165.3
Current: 15.8

0
165.3
» ITC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

ITC Guru Trades in Q1 2013

John Burbank 224,834 sh (+15.62%)
Jean-Marie Eveillard 788,270 sh (+14.04%)
Ron Baron 5,089,181 sh (+3.47%)
Chuck Royce 250,000 sh (unchged)
» More
Q2 2013

ITC Guru Trades in Q2 2013

Pioneer Investments 31,800 sh (New)
Jean-Marie Eveillard 1,009,649 sh (+28.08%)
Ron Baron 5,119,286 sh (+0.59%)
Chuck Royce 250,000 sh (unchged)
John Burbank 109,237 sh (-51.41%)
» More
Q3 2013

ITC Guru Trades in Q3 2013

Steven Cohen 6,738 sh (New)
Ron Baron 5,179,363 sh (+1.17%)
Jean-Marie Eveillard 1,009,649 sh (unchged)
Chuck Royce 250,000 sh (unchged)
Pioneer Investments 22,538 sh (-29.13%)
John Burbank 12,513 sh (-88.55%)
» More
Q4 2013

ITC Guru Trades in Q4 2013

Paul Tudor Jones 4,965 sh (New)
Diamond Hill Capital 42,660 sh (New)
Chuck Royce 250,000 sh (unchged)
John Burbank Sold Out
Ron Baron 5,143,603 sh (-0.69%)
Jean-Marie Eveillard 972,939 sh (-3.64%)
Pioneer Investments 21,583 sh (-4.24%)
Steven Cohen 4,800 sh (-28.76%)
» More
» Details

Insider Trades

Latest Guru Trades with ITC

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
John Burbank 2013-12-31 Sold Out 0.04%$30.1 - $34.98 $ 37.3617%0
John Burbank 2013-09-30 Reduce -88.55%0.29%$28.77 - $31.91 $ 37.3623%12513
John Burbank 2013-06-30 Reduce -51.41%0.41%$28.36 - $30.83 $ 37.3626%109237
Jean-Marie Eveillard 2013-06-30 Add 28.08%0.06%$28.36 - $30.83 $ 37.3626%1009649
John Burbank 2013-03-31 Add 15.62%0.11%$25.57 - $29.75 $ 37.3636%224834
John Burbank 2012-12-31 Add 840.17%0.52%$24.98 - $26.54 $ 37.3645%194456
Jean-Marie Eveillard 2012-12-31 Add 235.74%0.13%$24.98 - $26.54 $ 37.3645%691198
John Burbank 2012-09-30 New Buy0.07%$23.23 - $25.18 $ 37.3654%20683
Jean-Marie Eveillard 2012-09-30 New Buy0.06%$23.23 - $25.18 $ 37.3654%205871
John Keeley 2012-09-30 Sold Out 0.01%$23.23 - $25.18 $ 37.3654%0
Tom Gayner 2012-06-30 Sold Out 0.3%$22.29 - $26.14 $ 37.3655%0
John Keeley 2012-06-30 Reduce -97.42%0.26%$22.29 - $26.14 $ 37.3655%4408
John Burbank 2012-06-30 Sold Out 0.0026%$22.29 - $26.14 $ 37.3655%0
John Keeley 2012-03-31 Reduce -74.19%0.82%$24.14 - $25.95 $ 37.3659%171175
Tom Gayner 2012-03-31 Reduce -51.96%0.36%$24.14 - $25.95 $ 37.3659%83200
George Soros 2011-09-30 Sold Out 0.0029%$22.03 - $25.82 $ 37.3653%0
George Soros 2011-03-31 Reduce -49.12%$20.66 - $23.26 $ 37.3668%2900
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on ITC Holdings Corp

Ron Baron Comments on ITC Holdings Corp. - Apr 24, 2013

Independent electricity transmission provider ITC Holdings Corp. (ITC) has already borne the significant regulatory expense related to a proposed acquisition that we believe will allow ITC to double its growth opportunities and earn unusually attractive returns on invested capital.

From Ron Baron’s Baron Funds first quarter 2013 investor letter.


Check out Ron Baron latest stock trades

Baron Funds Comments on ITC Holdings Corp - Aug 24, 2012

From Baron Funds' second quarter commentary:

ITC Holdings Corp. (ITC) is the nation's largest independent electricity transmission company. The stock declined 10.0% in the second quarter due to concerns regarding the stability of ITC's return on equity given the current low interest rate environment. ITC has been affected by news regarding a complaint brought by a coalition of New England attorneys general regarding the rates in that area. Although ITC is not directly affected by this filing, investors believe that this could be precedent setting which would affect ITC in the future. ITC management continues to believe that FERC will support previously established returns that remain within a zone of reasonableness and that its rate structure will remain intact. In addition, ITC is currently going through the approval process to acquire Entergy's transmission business. The approval process is long as the deal is expected to close in 2013. ITC has previously said that the company will grow earnings at a 15-17% CAGR through 2016 and we think that the Entergy deal could accelerate that growth due to the persistent underinvestment in the Entergy territory and subsequent capital needed to bring that area up to a higher standard of reliability. (Rebecca Ellin)

Check out Ron Baron latest stock trades

Top Ranked Articles about ITC Holdings Corp

Ron Baron Comments on ITC Holdings Corp.
Independent electricity transmission provider ITC Holdings Corp. (ITC) has already borne the significant regulatory expense related to a proposed acquisition that we believe will allow ITC to double its growth opportunities and earn unusually attractive returns on invested capital. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 25.20
ITC's P/E(ttm) is ranked lower than
52% of the 655 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 17.50 vs. ITC: 25.20 )
ITC' s 10-Year P/E(ttm) Range
Min: 14.81   Max: 46.83
Current: 25.2

14.81
46.83
P/B 3.70
ITC's P/B is ranked lower than
63% of the 752 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.42 vs. ITC: 3.70 )
ITC' s 10-Year P/B Range
Min: 1.75   Max: 4.66
Current: 3.7

1.75
4.66
P/S 6.23
ITC's P/S is ranked lower than
79% of the 793 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.45 vs. ITC: 6.23 )
ITC' s 10-Year P/S Range
Min: 2.63   Max: 7.27
Current: 6.23

2.63
7.27
EV-to-EBIT 19.60
ITC's EV-to-EBIT is ranked higher than
53% of the 709 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 15.40 vs. ITC: 19.60 )
ITC' s 10-Year EV-to-EBIT Range
Min: 13.4   Max: 37.7
Current: 19.6

13.4
37.7
PEG 2.70
ITC's PEG is ranked higher than
66% of the 470 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.82 vs. ITC: 2.70 )
ITC' s 10-Year PEG Range
Min: 0.54   Max: 3.1
Current: 2.7

0.54
3.1
Shiller P/E 34.00
ITC's Shiller P/E is ranked lower than
61% of the 480 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 18.49 vs. ITC: 34.00 )
ITC' s 10-Year Shiller P/E Range
Min: 25.61   Max: 35.99
Current: 34

25.61
35.99

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.48
ITC's Dividend Yield is ranked lower than
81% of the 677 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.20 vs. ITC: 1.48 )
ITC' s 10-Year Dividend Yield Range
Min: 0.89   Max: 4.05
Current: 1.48

0.89
4.05
Dividend Payout 0.36
ITC's Dividend Payout is ranked higher than
78% of the 566 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 0.57 vs. ITC: 0.36 )
ITC' s 10-Year Dividend Payout Range
Min: 0.36   Max: 1.17
Current: 0.36

0.36
1.17
Dividend growth (3y) 7.00
ITC's Dividend growth (3y) is ranked higher than
87% of the 468 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.60 vs. ITC: 7.00 )
ITC' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 31.4
Current: 7

0
31.4
Yield on cost (5-Year) 2.04
ITC's Yield on cost (5-Year) is ranked lower than
70% of the 686 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.37 vs. ITC: 2.04 )
ITC' s 10-Year Yield on cost (5-Year) Range
Min: 1.21   Max: 5.5
Current: 2.04

1.21
5.5
Share Buyback Rate -1.30
ITC's Share Buyback Rate is ranked higher than
78% of the 520 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: -1.70 vs. ITC: -1.30 )
ITC' s 10-Year Share Buyback Rate Range
Min: 0   Max: -14.9
Current: -1.3

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 9.60
ITC's Price/Tangible Book is ranked lower than
73% of the 695 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.80 vs. ITC: 9.60 )
ITC' s 10-Year Price/Tangible Book Range
Min: 8.19   Max: 289.38
Current: 9.6

8.19
289.38
Price/Median PS Value 1.30
ITC's Price/Median PS Value is ranked higher than
52% of the 717 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.00 vs. ITC: 1.30 )
ITC' s 10-Year Price/Median PS Value Range
Min: 0.71   Max: 1.33
Current: 1.3

0.71
1.33
Price/Peter Lynch Fair Value 2.80
ITC's Price/Peter Lynch Fair Value is ranked lower than
59% of the 230 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.30 vs. ITC: 2.80 )
ITC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.86   Max: 2.41
Current: 2.8

0.86
2.41
Price/Graham Number 3.30
ITC's Price/Graham Number is ranked lower than
66% of the 605 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.20 vs. ITC: 3.30 )
ITC' s 10-Year Price/Graham Number Range
Min: 2.8   Max: 15.64
Current: 3.3

2.8
15.64
Earnings Yield (Greenblatt) 5.10
ITC's Earnings Yield (Greenblatt) is ranked higher than
60% of the 726 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 6.50 vs. ITC: 5.10 )
ITC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.7   Max: 7.5
Current: 5.1

2.7
7.5
Forward Rate of Return (Yacktman) 5.85
ITC's Forward Rate of Return (Yacktman) is ranked higher than
81% of the 612 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 4.31 vs. ITC: 5.85 )
ITC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.1   Max: 28.2
Current: 5.85

4.1
28.2

Business Description

Industry: Utilities - Regulated » Utilities - Regulated Electric
Compare:WR, EE, ENI, NGG, DTE » details
Traded in other countries:I5T.Germany
ITC Holdings Corp was incorporated in 2002 in the State of Michigan for the purpose of acquiring ITC Transmission. The Company's business consists mainly of the operations of its Regulated Operating Subsidiaries, ITC Transmission, METC, ITC Midwest and ITC Great Plains. ITC Transmission was originally formed in 2001 as a subsidiary of Detroit Edison, an electric utility subsidiary of DTE Energy, and was acquired in 2003 by ITC Holdings. METC was originally formed in 2001 as a subsidiary of Consumers Energy, an electric and gas utility subsidiary of CMS Energy Corporation, and was acquired in 2006 by ITC Holdings. ITC Great Plains was formed in 2006 by ITC Holdings and became a FERC-jurisdictional entity in 2009 after acquiring certain electric transmission assets in Kansas. As transmission-only companies, the Company's Regulated Operating Subsidiaries function as conduits, allowing for power from generators to be transmitted to local distribution systems either entirely through their own systems or in conjunction with neighboring transmission systems. Third parties then transmit power through these local distribution systems to end-use consumers. The transmission of electricity by its Regulated Operating Subsidiaries is a central function to the provision of electricity to residential, commercial and industrial end-use consumers. The operations performed by It Regulated Operating Subsidiaries fall into asset planning; engineering, design and construction; maintenance; and real time operations categories. The Company's Asset Planning group uses detailed system models and long-term load forecasts to develop its system expansion capital plans. The expansion plans identify projects that would address potential future reliability issues and/or produce economic savings for customers by eliminating constraints. The Company's Engineering, Design and Construction group is responsible for design, equipment specifications, maintenance plans and project engineering for capital, operation and maintenance work. The Company develops and tracks the preventive maintenance plans to promote a safe and reliable system. By performing preventive maintenance on its assets, it could minimize the need for reactive maintenance, resulting in improved reliability. ITC's Regulated Operating Subsidiaries contract with Utility Lines Construction, which is a division of Asplundh Tree Expert Co., to perform the bulk of their maintenance. From the Company's operations control room facility in Novi, Michigan, transmission system coordinators continuously monitor the performance of the transmission systems of its MISO Regulated Operating Subsidiaries transmission systems, using state of the art computer and communication systems to perform analysis to plan for contingencies and maintain security and reliability following any unplanned events on the system. The Company's main transmission service customers are Detroit Edison, Consumers Energy and IP&L. As electric t

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