Taking everything into account, ITRI scores 6 out of 10 in our fundamental rating. ITRI was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. While ITRI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on ITRI. With these ratings, ITRI could be worth investigating further for value investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year ITRI was profitable.
In the past year ITRI had a positive cash flow from operations.
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's Return On Assets of 6.94% is amongst the best of 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.
ITRI has a Return On Invested Capital of 8.96%. This is in the better half of the industry: ITRI outperforms 78.86% of its industry peers.
ITRI had an Average Return On Invested Capital over the past 3 years of 5.07%. This is below the industry average of 8.87%.
The last Return On Invested Capital (8.96%) for ITRI is above the 3 year average (5.07%), which is a sign of increasing profitability.

		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 has a better Profit Margin (10.69%) than 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 of 36.30%. This is comparable to the rest of the industry: ITRI outperforms 59.35% of 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

Operating and Profit Margin

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2. Health

2.1 Basic Checks

ITRI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ITRI has been reduced compared to 1 year ago.
ITRI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ITRI is higher compared to a year ago.

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.
ITRI has a worse Altman-Z score (2.64) than 63.41% of its industry peers.
The Debt to FCF ratio of ITRI is 3.65, which is a good value as it means it would take ITRI, 3.65 years of fcf income to pay off 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.
A Debt/Equity ratio of 0.47 indicates that ITRI is not too dependend on debt financing.
ITRI has a worse Debt to Equity ratio (0.47) than 66.67% of its industry peers.

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

ROIC/WACC1.19

WACC7.5%

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 (2.17) which is in line with 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.
With a Quick ratio value of 1.91, ITRI perfoms like the industry average, outperforming 56.91% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.17
Quick Ratio	1.91

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.24% over the past year.
The Earnings Per Share has been growing by 11.11% on average over the past years. This is quite good.
ITRI shows a small growth in Revenue. In the last year, the Revenue has grown by 0.14%.
ITRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.50% yearly.

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.
ITRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.

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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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

With a Price/Earnings ratio of 16.45, ITRI is valued correctly.
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 28.60, ITRI is valued a bit cheaper.
ITRI is valuated correctly with a Price/Forward Earnings ratio of 16.25.
83.74% of the companies in the same industry are more expensive than ITRI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ITRI is valued a bit cheaper.

		Industry Rank	Sector Rank
PE	16.45
Fwd PE	16.25

4.2 Price Multiples

ITRI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ITRI is cheaper than 80.49% of the companies in the same industry.
ITRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ITRI is cheaper than 91.06% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	13.3
EV/EBITDA	12.61

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.
ITRI has an outstanding profitability rating, which may justify a higher PE ratio.