CIT Investment Analysis Report & Stock Research, CIT Group, Inc.

Log InorSign Up

CIT Group, Incorporated (CIT)

CIT Stock Report

2-Year Price History

Recent Price
(7/16 4:00PM) -75.0%
$0.41
52-Week Price
$1.08 - $13.00
Market Capitalization
$637.8 Million
Dividend Yield
0.00%
Most Recent Dividend
$0.55

A Word Of Caution

The Ockham Research Team has placed an alert on this security because there have been significant developments associated with CIT Group, Inc. (CIT). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.

Please take a moment to look at the RazorWire feed on the right hand side of the report. Each mention of CIT Group, Inc. on business television will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.

Therefore, (and as always), check additional sources and available information regarding CIT before making an investment decision.

Ockham's Rating

Rating specific information requires Premium Access.
Buy Now or Take the Tour.

CIT Revenue

As a value investing shop, we are interested in seeing how CIT's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 8 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.64x and the low end of the range at 0.72x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for CIT of 0.13x is well below its normal historic Price to Sales levels. At a price of $1.53, CIT is 90% below where we would expect to see it. Clearly, this stock looks undervalued compared to historical levels, at least on a Price to Sales basis. This will positively affect our analysis because it is rare to find a stock this far below historical norms, and we would expect some price appreciation to bring this metric back towards a more normal range.

CIT Cash Earnings

When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of CIT, it appears that either the current estimate for Cash Earnings is negative or CIT is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters. Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis CIT receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.

CIT Dividends

While it is not necessary to pay an attractive dividend or a dividend at all, to receive a positive rating from Ockham, we view dividends as an additionally helpful measure in determining the future potential of any company.

Peer Comparison

:

CIT Group, Inc. Industry Grouping

(7/15/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding CIT) 71.31 27.92 » 82.00 3.71 1.95 » 6.07 15.79% 223.88%
*10 year range does not include current year values
Triplecrown Acquisition Corp. TCW $664.5 Million $9.63 321.33 120.00 » 309.40 0.00 0.00 » 0.00 n/a 0.85%
CIT Group, Inc. CIT $637.8 Million $1.64 -1.00 7.44 » 17.00 0.13 0.11 » 2.10 10.68% 8.19%
Interactive Brokers Group, Inc. IBKR $630.7 Million $15.56 8.10 5.55 » 28.52 0.00 0.00 » 0.00 n/a 45.85%
Global Cash Access Holdings, Inc. GCA $623.8 Million $8.00 10.96 3.88 » 42.92 0.81 0.25 » 2.96 n/a 14.56%
Dorchester Minerals LP DMLP $622.2 Million $22.03 8.79 5.09 » 13.85 7.92 4.63 » 12.79 12.95% 29.46%
Sabine Royalty Trust SBR $585.7 Million $40.17 7.40 5.10 » 15.30 9.84 4.86 » 14.62 18.63% 1028.68%
>
Ockham Ratings & Analysis Report
powered by Psydex

The latest TV Media Discussion

7:00:47 PM CIT $0.40 CIT Group, Inc.
America's Nightly Scoreboard
12 minutes ago (07/16)
“…In the hot seat. >> the decisions we made were going to ultimately help preserve the markets. David: talking tarp and bailouts just as the government finally learns to say no to new tarp spending on CIT. Are we at the end of the line of tarp bailouts? Text us your take, hank paulson, is he a buy, a sell or a hold? >>> exclusive. …” …more details…
6:25:40 PM CIT $0.40 CIT Group, Inc.
47 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
6:24:46 PM CIT $0.40 CIT Group, Inc.
48 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
6:19:40 PM CIT $0.40 CIT Group, Inc.
53 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
6:17:21 PM CIT $0.39 CIT Group, Inc.
55 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
6:14:44 PM CIT $0.39 CIT Group, Inc.
58 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
6:14:02 PM CIT $0.39 CIT Group, Inc.
58 minutes ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Cavuto said about CIT GROUP, INC. …more details… LEARN MORE
5:39:23 PM CIT $0.41 CIT Group, Inc.
Happy Hour
1 hours ago (07/16)
“…The same way forever. It became more transparent. Rebecca: before we wrap up, talking about goldman sachs with haul these great I wish I had those connections to get business CIT, they apparently don't have the same connections or is it just finally the government is, to a good point, saying stop, no more tarp or bailouts? >> I think you had to have a bailout. …” …more details…
5:26:26 PM CIT $0.41 CIT Group, Inc.
Happy Hour
1 hours ago (07/16)
“…Money. I guess nick, comes back to premise itself. I think this is what we're drilling down to with you we're figuring this out. Do you think giving CIT, say, $10 billion would actually enable you to get a loan from them? Or would they simply pocket that for their reserves because they have so many outstanding loss. >> or bonuses. Cody: there you go. …” …more details…
5:25:29 PM CIT $0.41 CIT Group, Inc.
Happy Hour
1 hours ago (07/16)
“…That small businesses are starving for funds. There is no mechanism for our franchisees and other folks to get the funds. Banking community dried up. CIT was a great resource. But i'm telling you other banks are not lending out money either. CIT might be one example --. Eric: nick, if it is CIT or ge or many numerous private companies that are doing, that are still in that business, it is going to be the same thing. Giving CIT more money isn't going to change the deal for you guys. It will be someone else you have to go to. >> but my point is this, i'm not here to fight on behalf of giving CIT more money. My point there is major as far as getting funds to the folks who have building it is not there so you tell me where do you want the money to go to get loans? The money is not trickling …” …more details…
5:22:59 PM CIT $0.40 CIT Group, Inc.
Happy Hour
1 hours ago (07/16)
“…These restaurants but there are 270 of them across the country and you're saying it is virtually impossible to get any financing out there once or if CIT goes belly-up? >> that's correct. Basically CIT is really been a strong partner with franchise community, helping americans build their own dream. Get their own business. We have beef's we have 5,000 employees. …” …more details…
5:21:58 PM CIT $0.40 CIT Group, Inc.
Happy Hour
1 hours ago (07/16)
“…Rebecca: CIT apparently giving up on any hope of a government bailout. Now turning to its bondholders for rescue financing. All this breaking right now, …” …more details…
4:49:02 PM CIT $0.39 CIT Group, Inc.
2 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about CIT GROUP, INC. …more details… LEARN MORE
4:03:10 PM CIT $0.39 CIT Group, Inc.
3 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about CIT GROUP, INC. …more details… LEARN MORE
3:28:40 PM CIT $0.40 CIT Group, Inc.
3 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about CIT GROUP, INC. …more details… LEARN MORE
3:04:41 PM CIT $0.44 CIT Group, Inc.
4 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about CIT GROUP, INC. …more details… LEARN MORE
3:04:04 PM CIT $0.44 CIT Group, Inc.
4 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Closing Bell said about CIT GROUP, INC. …more details… LEARN MORE
2:47:34 PM CIT $0.42 CIT Group, Inc.
4 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Street Signs said about CIT GROUP, INC. …more details… LEARN MORE
1:29:44 PM CIT $0.44 CIT Group, Inc.
5 hours ago (07/16)
“…Entrepreneurs to come up with great ideas and market them and to be rewarded by making money from that. >> stuart: what can you do I mean, I was looking at CIT financial, lends to 300,000 small retailers. Going bankrupt, no help from the government. You've got the g.M. And chrysler they're not gonna get help from the government even though …” …more details…
1:27:21 PM CIT $0.44 CIT Group, Inc.
5 hours ago (07/16)
“…Of an oracle merger agreement. Of course, ork call bought mike systems in this deal and it's a done deal. Both stocks ever so slightly CIT is not bailed out. Small businesses may soon be %-penalized for not providing healthcare insurance and the white house bails out the uaw but offers no help to the axed g.M. And chrysler dealers. …” …more details…
1:18:51 PM CIT $0.44 CIT Group, Inc.
5 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
1:08:20 PM CIT $0.46 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
1:05:01 PM CIT $0.47 CIT Group, Inc.
6 hours ago (07/16)
“…>> stuart: I understand jamie dimon gets mad when you say you got that profit because you got that tarp money. >> a way to get his back up. >> stuart: the federal government is leaving CIT high and dry. The company could file for chapter 11 as early as tomorrow. Sandra smith is with me now. If CIT goes under, chapter 11, who goes under with them? >> this is a major lender to small business. In particular retailers. There's a million customers that could lose lending from this, …” …more details…
1:03:00 PM CIT $0.47 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
1:01:36 PM CIT $0.48 CIT Group, Inc.
6 hours ago (07/16)
“…The bank's credit card and consumer lending took in big losses. Second, a major lender to small businesses is reaching the end. CIT is not getting a government bailout. Medium and small size firms will find it harder to launch and stay afloat. Speaking of small businesses, members of congress want to save …” …more details…
12:45:32 PM CIT $0.47 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
12:44:58 PM CIT $0.49 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
12:38:17 PM CIT $0.48 CIT Group, Inc.
6 hours ago (07/16)
“…It would take a financing option away from our franchisees. Michelle king, that's the statement they sent me. Wanted to talk about the effects that dunkin' donuts would feel if CIT were to go belly up. Last trade on CIT, 49 cents. You get nervous when you see a stock gobly a dollar. >> cheryl, that quote you got from dunkin' donuts where this is going to be a punch to the …” …more details…
12:37:40 PM CIT $0.49 CIT Group, Inc.
6 hours ago (07/16)
“…>> cheryl: sandra smith up in the news room. Thank you and thank you for bringing up that graphic once again because as you saw, not the small/medium business exposed to CIT when it comes to big businesses like dillards and dunkin' donuts. Our franchisees currently have credit access from a variety of national, regional and community banks. …” …more details…
12:36:35 PM CIT $0.49 CIT Group, Inc.
6 hours ago (07/16)
“…Conference call following j. P. Morgan's earnings announcement this morning. The chief executive officer of j. P. Morgan, jamie dimon, saying that his bank has some exposure to CIT, but he says it won't have a major -- it won't take a major hit if the commercial lender does indeed shedding a little light on the ripple effects that we may see as a result of the demise of this company. But the big concern is who will be affected by this. We've got a graphic for you showing some of CIT clients, a sampling of clients that CIT has helped to finance. As far as corporate finance, looking at dunkin' donuts, dairy queen, arcadia, also trade finance, $6 billion. …” …more details…
12:35:43 PM CIT $0.50 CIT Group, Inc.
6 hours ago (07/16)
“…Not affecting boeing stock. Stock up 34 cents right now. >> tom: breaking news for you, the clock is ticking on the future for small business lender the government backing down on a bailout deal and CIT could file for bankruptcy as early as tomorrow. Sandra smith joins us with the very latest. Sandra. >> hey, tom. Shares of CIT continue to plunge down. Right now 69% as investors continue to speculate that this lender could face bankruptcy as soon as tomorrow. The very latest on this, fitch ratings agency has now cut CIT group's long-term debt rating to c from double bb minus. Also fitch saying that the company will have to file for bankruptcy protection in the …” …more details…
12:31:52 PM CIT $0.50 CIT Group, Inc.
6 hours ago (07/16)
“…Discount window, fdic backing off on insuring its debt because of the bad state of the balance the bondholders, goldman sachs also has a $3 billion credit facility open to CIT. Don't know the level of exposure there. >> cheryl: as we get more earnings from the banks -- well, today and tomorrow, that's going to be the big question when you look at the balance sheets which I know you love to do and see what their exposure is to CIT. It could be a very negative effect -- I don't want to use the word -- >> a million small businesses who also have their own lines of credit to other banks around the country. >> cheryl: right. I don't know if we have that full screen but two of the big names that have a lot of exposure, financing arms to CIT is dillards and dunkin' donuts. Dunkin' donuts, I called them, they didn't want to talk about understand that but they did give us a statement. Wanted to bring this up. To kind of talk about the position on it. We're gonna take a break. We're going to keep going on CIT. Take a commercial break. When we come back a lot more happening on "fox business." >> tom: we've got a story that's gonna bring tears to your we're talking about onion power. That's right. You don't want to miss that as well coming up on "fox …” …more details…
12:30:15 PM CIT $0.50 CIT Group, Inc.
6 hours ago (07/16)
“…Administration -- we have a lot of republicans down here but the obama administration ran on the plan that they were out to help small and mid size businesses so some of these guys went into CIT thinking, hey, let's go for it and found themselves stuck when that stock opened the 33 cents a >> cheryl: nicole, thank you. When you look at that last trade, we were here yesterday at …” …more details…
12:29:30 PM CIT $0.50 CIT Group, Inc.
6 hours ago (07/16)
“…But a lot of pressure on this as a result you have that divergence. That's why we're going nowhere >> cheryl: real quick, the guys down there telling you about this situation with CIT. How nervous are they about it? The stock did open but last trade 50 cents on this thing. Writing on the wall which is not good. >> this is a $60 stock. …” …more details…
12:27:53 PM CIT $0.51 CIT Group, Inc.
6 hours ago (07/16)
“…Friday where we continue to get bank of america, citi and general electric. CIT pressuring the market. Wall street, many of whom bought in yesterday thinking the obama administration would step up to the plate and help out CIT on the administration's plan to help small businesses. So they found themselves under the gun. The financials weekly, talk about j. P. Morgan in particular because j. P. Morgan with their second net income on the rise, …” …more details…
12:27:38 PM CIT $0.51 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
12:27:21 PM CIT $0.51 CIT Group, Inc.
6 hours ago (07/16)
“…Let's take a look at the stock market. The stocks zigzagging back and forth. Blowout earnings on the good side, the bad side the market looking at the looming failure of CIT. Nicole petallides on the floor of the new york stock exchange watching it. >> good summary, tom and cheryl. We have been zigzagging back and …” …more details…
12:26:55 PM CIT $0.51 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
12:26:18 PM CIT $0.51 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
12:25:01 PM CIT $0.52 CIT Group, Inc.
6 hours ago (07/16)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Power Lunch said about CIT GROUP, INC. …more details… LEARN MORE
View All CIT Group, Inc. News

Key Fundamentals

CIT - CIT Group, Incorporated Fundamentals
Price (7/16 4:00PM) $0.41
Volume (7/16 4:00PM) 436.8 Million
Last Close Price $1.64
10 Day Average Volume 65.3 Million
13 Week Price Range $1.08 - $4.10
52 Week Price Range $1.08 - $13.00
LTM Revenue $5.7 Billion
 
Shares Outstanding (12/2008) 388.9 Million
Market Capitalization $637.8 Million
Shares Held By Institutions 370.7 Million
Institutional Holders 371
% Shares Held By Institutions 95.30%
Earnings Per Share (EPS) ($11.06)
P/E Ratio n/a
Book Value Per Share $11.03
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.22
Fiscal Year Ends December

About CIT Group, Inc.

CIT Group, Incorporated is considered to operate in the Financial sector. They specifically operate in the Credit Services business segment contained within the Financial Services industry.

A bank holding company through its subsidiary, which provides financing and leasing capital for companies and consumers in a number of industries, offering vendor, equipment, commercial, factoring, student

NASDAQ 1885.03

22.13  1.19%
S&P; 500 940.74

8.06  0.86%
^DIA 87.23

1.03  1.19%