No. of Recommendations: 2
Investment Technology Group (ITG)

Generally good non-GAAP earnings growth rebounding from the 2011-2012 slump.

Revenue has finally gotten back to 2010 levels, recent growth of 5% is not strong.  Without stronger revenue growth, earnings growth seems likely to hit a ceiling fairly soon.

1yrPEG of 0.61 suggests good value, but PE of about 20 is just fair.




Basic data is from Schwab.com earnings tab and reports/earnings, also Reuters

ITG non-GAAP eps
         Q1      Q2     Q3    Q4    YEAR  YoY%
2010                               .94
2011                               .69    -27%
2012  .13    .05    .01     .02    .21    -69%
2013  .24    .27    .20     .26    .97     362%
2014  .37    .35    .25     .40    1.37    41%
2015  .47    .43e   .38e    .44e   1.71e   25%e
2016  .49e                         2.07e   21%e


TTM non-GAAP EPS   
2012                    .21 
2013   .32  .54   .73   .97 
2014  1.10 1.18  1.23  1.37  
2015  1.47 

price  3/31 6/30  9/30 12/31
2013 11.0  14.1  15.7  20.5
2014 20.2  16.8  15.7  20.8
2015 30.2

PE    (P/ttm non-GAAP eps)
2013  34.3  26.1  21.5  21.1
2014  18.4  14.2  12.8  15.2
2015  20.5

PE/ ttm growth 0.61  (20.5; 1.10>1.47>>33.6%)
not a screaming bargain, but still attractive

revenue growth rate 
      Rev      % increase 
2010  571m
2011  572m     0.1%
2012  504m   -11.7%
2013  531m     5.3%
2014  560m     5.5%
2015  588me    5.0%e
2016  612me    4.1%e
slow growth, especially when considering where they were in 2010

Investment Technology Group, Inc. (ITG) is an independent execution and research broker. The Company partners with global portfolio managers and traders to provide data-driven insights throughout the investment process. ITG helps clients understand market trends, improve performance, mitigate risk and navigate complex markets. ITG takes a consultative approach in delivering the highest quality institutional liquidity, execution services, analytical tools and proprietary research. ITG's business is organized into four operating segments: The United States Operations, Canadian Operations, European Operations and Asia Pacific Operations. These four operating segments offer solutions for asset managers and broker-dealers in the areas of electronic brokerage; research, sales and trading; platforms and analytics. These offerings include trade execution services and solutions for portfolio
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