CIT Group Inc. (NYSE: CIT)
CIT Group Inc. (CIT) is a bank holding company that provides commercial financing and leasing products, and management advisory services to clients in a variety of industries. CIT bank is its primary bank subsidiary. It serves clients in a variety of industries, including transportation, aerospace and rail, manufacturing, wholesaling, retailing, healthcare, communications, media and entertainment, and various service-related industries. The Company’s products include asset-based loans, secured lines of credit, leases (operating, finance and leveraged), vendor finance programs, import and export financing, debtor-in-possession/turnaround financing, acquisition and expansion financing, letters of credit/trade acceptances structuring and small business loans. The Company operates through five business segments: Corporate Finance, Transportation Finance, Trade Finance, Vendor Finance and Consumer.
CIT Group is a commercial and consumer finance company that has been providing financing and leasing products and services since 1908. The Company seeks to mitigate losses and diversify risk by spreading its business around the globe, and it primarily focuses on firms in the middle market. It concentrates its business on the manufacturing, transportation, retailing, wholesaling health care, communications, energy and various service-related industries, as well as the education and home mortgage lending markets.
The Company sources its loans through direct marketing efforts through referral sources and other channels to borrowers, lessees, manufacturers, vendors, distributors and end users. It also buys and sells participations in syndications of finance receivables and lines of credit and may buy or sell finance receivables on a whole-loan basis. In addition, it provides collection and servicing operations. Revenue is primarily generated through interest income from loans on the balance sheet, rental fees from the equipment it leases, and fee and other income for services. It may also syndicate and sell receivables and equipment to leverage its origination capabilities and manage its balance sheet.
|
Share Statistics (11-Dec-09) |
|
FY 2007 |
FY 2008 |
% Chg |
Q3 2008 |
Q3 2009 |
% Chg |
|
| Symbol |
CIT |
Revenue, $Mn |
8.61B |
1.83B |
78.7% |
n/a |
n/a |
n/a |
| Current price |
$29.55 |
Gross marg. |
45.1% |
44.0% |
2.4% |
n/a |
n/a |
n/a |
| 52wk Range: |
$30.66-25.50 |
Oper. margin |
14.0% |
-17.6% |
225.7% |
n/a |
n/a |
n/a |
| Avg Vol (3m): |
82,450,000 |
Net margin |
10.2% |
-10.3% |
200.9% |
n/a |
n/a |
n/a |
| Market Cap. |
n/a |
|
|
|
|
|
|
|
| Dil. Shares Outst. |
n/a |
EPS, $ |
-0.58 |
-2.74 |
572.4% |
n/a |
n/a |
n/a |
Source: Reuters.com, SEC Filings.
Financial Summary
| Financial Strength (10-Dec-2009) | Company | Industry | Sector | S&P 500 |
| Quick Ratio (MRQ) | – | 1.48 | 1.52 | 0.91 |
| Current Ratio (MRQ) | – | 1.49 | 1.88 | 1.07 |
| Long-Term Debt to Equity (MRQ) | 889.76 | 351.00 | 78.58 | 125.29 |
| Total Debt to Equity (MRQ) | 892.05 | 846.56 | 223.10 | 191.86 |
Source: Reuters.com, SEC Filings.
Analyst Consensus
No chart available.
Source: www.ft.com
|
|
# of Estimates |
Mean |
High |
Low |
1 Year Ago |
|
SALES (in millions) |
|||||
|
Year Ending Dec-10 |
1 |
2,517.00 |
2,517.00 |
2,517.00 |
– |
Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=CIT
Investment Highlights
CIT in early October announced that it has commenced a restructuring of its capital structure that has been approved by the Company’s board of directors and by the Steering Committee of CIT’s bondholders. The announcement is an important step in a comprehensive restructuring plan to enhance CIT’s capital levels, improve its liquidity and return the Company to profitability. Under the plan, CIT and CIT Group Funding Company of Delaware LLC (Delaware Funding) are launching exchange offers for certain unsecured notes. If the Company does not achieve the objectives of the exchange offers, it may decide to initiate a voluntary filing under Chapter 11 of the U.S. Bankruptcy Code. Therefore, the Company is concurrently soliciting bondholders and other holders of CIT debt to approve a prepackaged plan of reorganization. The Company has been informed by advisors to the Steering Committee that, subject to review of the offering memorandum, approximately $10 billion of outstanding unsecured indebtedness have already indicated their intention to participate in the exchange offer or vote for the prepackaged plan of reorganization.
CIT announced on December 10 that it has emerged from bankruptcy having satisfied all of the conditions required to consummate the prepackaged Plan of Reorganization (the “Plan”). The distribution of CIT’s new debt and equity securities has taken place in accordance with the Company’s confirmed Plan and the new common stock has commenced trading on the New York Stock Exchange (NYSE) under the symbol “CIT.”
Source: http://www.cit.com/index.htm
Technical Analysis
Source: http://stockcharts.com
No technical analysis available.
Comparative Analysis
|
Company Name |
Ticker |
Price per |
Mrkt. Cap. |
P/E |
P/S |
||
|
Dec-11-2009 |
symbol |
Share, $ |
$ Mn |
2009 |
2010 |
2009 |
2010 |
|
|
|
|
|
|
|
|
|
| Citigroup Inc. |
C |
3.92 |
89.48B |
n/a |
n/a |
2.27 |
n/a |
| Orix Corp. |
IX |
35.01 |
7.52B |
n/a |
n/a |
0.81 |
n/a |
| Micro Financial Inc. |
MFI |
2.88 |
40.75M |
10.93 |
n/a |
2.03 |
n/a |
| Financial Median |
|
|
32.34B |
n/a |
n/a |
1.70 |
n/a |
| CIT Group Inc. |
CIT |
29.55 |
n/a |
n/a |
n/a |
n/a |
n/a |
Source: Thomson Financial
Insider Trading Activity
|
NET SHARES PURCHASE ACTIVITY Inside Purchases – Last 6 Months |
||
|
Shares |
Transaction |
|
| Purchases |
n/a |
n/a |
| Sales |
n/a |
n/a |
| Net Shares Purchased (Sold) |
n/a |
n/a |
| Total Insider Shares Held |
n/a |
n/a |
| % Net Shares Purchased (Sold) |
n/a |
n/a |
|
Net Institutional Purchases — Prior Qtr to Latest Qtr |
|
|
Shares |
|
| Net Shares Purchased (Sold) |
n/a |
| % Change in Institutional Shares Held |
n/a |
Source: Yahoo Finance
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