ITRI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. ITRI scores excellent on profitability, but there are some minor concerns on its financial health. ITRI may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make ITRI a good candidate for value investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ITRI was profitable.
ITRI had a positive operating cash flow in the past year.
In multiple years ITRI reported negative net income over the last 5 years.
Each year in the past 5 years ITRI had a positive operating cash flow.

1.2 Ratios

ITRI has a Return On Assets of 6.94%. This is amongst the best in the industry. ITRI outperforms 85.37% of its industry peers.
With an excellent Return On Equity value of 15.21%, ITRI belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.96%, ITRI is in the better half of the industry, outperforming 79.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ITRI is below the industry average of 8.85%.
The 3 year average ROIC (5.07%) for ITRI is below the current ROIC(8.96%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	6.94%
ROE	15.21%
ROIC	8.96%

ROA(3y)3.44%

ROA(5y)0.94%

ROE(3y)7.92%

ROE(5y)1.87%

ROIC(3y)5.07%

ROIC(5y)4.06%

1.3 Margins

ITRI's Profit Margin of 10.69% is amongst the best of the industry. ITRI outperforms 85.37% of its industry peers.
ITRI's Profit Margin has improved in the last couple of years.
ITRI has a Operating Margin of 12.51%. This is amongst the best in the industry. ITRI outperforms 81.30% of its industry peers.
In the last couple of years the Operating Margin of ITRI has grown nicely.
ITRI has a Gross Margin (36.30%) which is in line with its industry peers.
In the last couple of years the Gross Margin of ITRI has grown nicely.

		Industry Rank	Sector Rank
OM	12.51%
PM (TTM)	10.69%
GM	36.3%

OM growth 3Y76.32%

OM growth 5Y14.55%

PM growth 3YN/A

PM growth 5Y37.99%

GM growth 3Y5.93%

GM growth 5Y2.72%

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ROA

ROE

ROIC

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ITRI is destroying value.
Compared to 1 year ago, ITRI has less shares outstanding
ITRI has more shares outstanding than it did 5 years ago.
ITRI has a worse debt/assets ratio than last year.

2.2 Solvency

ITRI has an Altman-Z score of 2.64. This is not the best score and indicates that ITRI is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ITRI (2.64) is worse than 60.16% of its industry peers.
ITRI has a debt to FCF ratio of 3.65. This is a good value and a sign of high solvency as ITRI would need 3.65 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.65, ITRI is in the better half of the industry, outperforming 69.11% of the companies in the same industry.
ITRI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
ITRI has a worse Debt to Equity ratio (0.47) than 65.85% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	3.65
Altman-Z	2.64

ROIC/WACC0.67

WACC13.38%

2.3 Liquidity

A Current Ratio of 2.17 indicates that ITRI has no problem at all paying its short term obligations.
ITRI has a Current ratio of 2.17. This is comparable to the rest of the industry: ITRI outperforms 43.09% of its industry peers.
ITRI has a Quick Ratio of 1.91. This is a normal value and indicates that ITRI is financially healthy and should not expect problems in meeting its short term obligations.
ITRI has a Quick ratio (1.91) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	2.17
Quick Ratio	1.91

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WACC

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Altman-Z score

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3. Growth

3.1 Past

ITRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.24%, which is quite good.
Measured over the past years, ITRI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.11% on average per year.
The Revenue has been growing slightly by 0.14% in the past year.
The Revenue has been decreasing by -0.50% on average over the past years.

EPS 1Y (TTM)9.24%

EPS 3Y47.43%

EPS 5Y11.11%

EPS Q2Q%-16.3%

Revenue 1Y (TTM)0.14%

Revenue growth 3Y7.19%

Revenue growth 5Y-0.5%

Sales Q2Q%-5.5%

3.2 Future

Based on estimates for the next years, ITRI will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.57% on average per year.
The Revenue is expected to grow by 4.99% on average over the next years.

EPS Next Y23.24%

EPS Next 2Y4.04%

EPS Next 3Y6.63%

EPS Next 5Y13.57%

Revenue Next Year-3.1%

Revenue Next 2Y0.66%

Revenue Next 3Y2.77%

Revenue Next 5Y4.99%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.66 indicates a correct valuation of ITRI.
Based on the Price/Earnings ratio, ITRI is valued cheaply inside the industry as 84.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.32, ITRI is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.45, the valuation of ITRI can be described as correct.
ITRI's Price/Forward Earnings ratio is rather cheap when compared to the industry. ITRI is cheaper than 81.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ITRI to the average of the S&P500 Index (25.57), we can say ITRI is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	16.66
Fwd PE	16.45

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ITRI indicates a rather cheap valuation: ITRI is cheaper than 80.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ITRI is valued cheaply inside the industry as 91.87% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	13.46
EV/EBITDA	12.62

4.3 Compensation for Growth

ITRI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ITRI may justify a higher PE ratio.