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Investors Title Co (Investors Title Co) ROE %

: 9.26% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Investors Title Co's annualized net income for the quarter that ended in Dec. 2023 was $23.3 Mil. Investors Title Co's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $252.1 Mil. Therefore, Investors Title Co's annualized ROE % for the quarter that ended in Dec. 2023 was 9.26%.

The historical rank and industry rank for Investors Title Co's ROE % or its related term are showing as below:

ITIC' s ROE % Range Over the Past 10 Years
Min: 7.28   Med: 12.74   Max: 31.21
Current: 8.78

During the past 13 years, Investors Title Co's highest ROE % was 31.21%. The lowest was 7.28%. And the median was 12.74%.

ITIC's ROE % is ranked worse than
55.85% of 487 companies
in the Insurance industry
Industry Median: 9.67 vs ITIC: 8.78

Investors Title Co ROE % Historical Data

The historical data trend for Investors Title Co's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Investors Title Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.14 20.12 31.21 10.17 8.81

Investors Title Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.54 1.96 12.41 11.34 9.26

Competitive Comparison

For the Insurance - Specialty subindustry, Investors Title Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Investors Title Co ROE % Distribution

For the Insurance industry and Financial Services sector, Investors Title Co's ROE % distribution charts can be found below:

* The bar in red indicates where Investors Title Co's ROE % falls into.



Investors Title Co ROE % Calculation

Investors Title Co's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=21.686/( (241.011+251.553)/ 2 )
=21.686/246.282
=8.81 %

Investors Title Co's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=23.344/( (252.668+251.553)/ 2 )
=23.344/252.1105
=9.26 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Investors Title Co  (NAS:ITIC) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=23.344/252.1105
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(23.344 / 214.732)*(214.732 / 331.237)*(331.237 / 252.1105)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.87 %*0.6483*1.3139
=ROA %*Equity Multiplier
=7.05 %*1.3139
=9.26 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=23.344/252.1105
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (23.344 / 24.852) * (24.852 / 0) * (0 / 214.732) * (214.732 / 331.237) * (331.237 / 252.1105)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.9393 * N/A * 0 % * 0.6483 * 1.3139
=9.26 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Investors Title Co ROE % Related Terms

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Investors Title Co (Investors Title Co) Business Description

Traded in Other Exchanges
N/A
Address
121 North Columbia Street, Chapel Hill, NC, USA, 27514
Investors Title Co along with its subsidiaries is engaged in the issuance of residential and commercial title insurance through ITIC and NITIC. It also provides tax-deferred real property exchange services, investment management, and trust services, and management services to title insurance agencies. The company generates its revenue from interest and dividends.
Executives
James E Scott director 121 NORTH COLUMBIA STREET, CHAPEL HILL NC 27514
Parker, Jr. Elton C. director 121 N COLUMBIA STREET, P O DRAWER 2687, CHAPEL HILL NC 27514
Tammy Coley director 121 N COLUMBIA STREET, P O DRAWER 2687, CHAPEL HILL NC 27514
Fine James A Jr director, officer: President, Treasurer
Markel Gayner Asset Management Corp 10 percent owner 4521 HIGHWOODS PKWY, GLEN ALLEN VA 23060
Timothy B Murphy officer: Chief Executive Officer 230 BROADWAY, LYNNFIELD MA 01940
Markel Corp 10 percent owner 4521 HIGHWOODS PKWY, GLEN ALLEN VA 23060
Markel American Insurance Co 10 percent owner 4521 HIGHWOODS PARKWAY, GLEN ALLEN VA 23060
Essex Insurance Co 10 percent owner
Evanston Insurance Co 10 percent owner
R Horace Johnson director 3317 LANDOR ROAD, RALEIGH NC 27609
Speed James H. Jr. director 11032 BRASS KETTLE ROAD, RALEIGH NC 27614
Hutson Richard M Ii director PO BOX 2687, CHAPEL HILL NC 27515
W Morris Fine director, officer: Executive Vice President
J Allen Fine director, 10 percent owner, officer: Chief Executive Officer 121 NORTH COLUMBIA ST, INVESTORS TITLE CO, CHAPEL HILL NC 97514

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