97.67 USD
-2.02 (-2.03%)
97.67 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ITRI. ITRI was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. ITRI has an excellent profitability rating, 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.
1. Profitability
1.1 Basic Checks
- ITRI had positive earnings in the past year.
- 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.
- ITRI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- ITRI has a better Return On Assets (6.94%) than 85.48% of its industry peers.
- ITRI has a better Return On Equity (15.21%) than 82.26% of its industry peers.
- ITRI's Return On Invested Capital of 8.96% is fine compared to the rest of the industry. ITRI outperforms 79.03% 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 8.83%.
- 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
- Looking at the Profit Margin, with a value of 10.69%, ITRI belongs to the top of the industry, outperforming 85.48% of the companies in the same industry.
- ITRI's Profit Margin has improved in the last couple of years.
- ITRI's Operating Margin of 12.51% is amongst the best of the industry. ITRI outperforms 80.65% of its industry peers.
- ITRI's Operating Margin has improved in the last couple of years.
- ITRI has a Gross Margin of 36.30%. This is comparable to the rest of the industry: ITRI outperforms 58.87% 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ITRI is destroying value.
- ITRI has less shares outstanding than it did 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
- An Altman-Z score of 2.65 indicates that ITRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
- ITRI has a worse Altman-Z score (2.65) than 63.71% 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.
- ITRI's Debt to FCF ratio of 3.65 is fine compared to the rest of the industry. ITRI outperforms 69.35% of its industry peers.
- ITRI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.47, ITRI is not doing good in the industry: 66.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.67
WACC13.33%
2.3 Liquidity
- ITRI has a Current Ratio of 2.17. This indicates that ITRI is financially healthy and has no problem in meeting 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.
- ITRI's Quick ratio of 1.91 is in line compared to the rest of the industry. ITRI outperforms 57.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.91 |
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%.
- Measured over the past years, ITRI shows a decrease in Revenue. The Revenue has been decreasing by -0.50% on average per year.
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
- ITRI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.57% yearly.
- ITRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.99% yearly.
EPS Next Y23.28%
EPS Next 2Y3.95%
EPS Next 3Y6.86%
EPS Next 5Y13.57%
Revenue Next Year-3.1%
Revenue Next 2Y0.24%
Revenue Next 3Y2.4%
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.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.20 indicates a correct valuation of ITRI.
- Compared to the rest of the industry, the Price/Earnings ratio of ITRI indicates a rather cheap valuation: ITRI is cheaper than 84.68% of the companies listed in the same industry.
- ITRI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 16.03 indicates a correct valuation of ITRI.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ITRI indicates a rather cheap valuation: ITRI is cheaper than 83.87% of the companies listed in the same industry.
- ITRI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.2 | ||
| Fwd PE | 16.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ITRI is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
- ITRI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ITRI is cheaper than 91.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.09 | ||
| EV/EBITDA | 12.7 |
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.
PEG (NY)0.7
PEG (5Y)1.46
EPS Next 2Y3.95%
EPS Next 3Y6.86%
5. Dividend
5.1 Amount
- ITRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ITRON INC / ITRI FAQ
What is the ChartMill fundamental rating of ITRON INC (ITRI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to ITRI.
What is the valuation status of ITRON INC (ITRI) stock?
ChartMill assigns a valuation rating of 8 / 10 to ITRON INC (ITRI). This can be considered as Undervalued.
How profitable is ITRON INC (ITRI) stock?
ITRON INC (ITRI) has a profitability rating of 8 / 10.
What is the financial health of ITRON INC (ITRI) stock?
The financial health rating of ITRON INC (ITRI) is 5 / 10.
Can you provide the expected EPS growth for ITRI stock?
The Earnings per Share (EPS) of ITRON INC (ITRI) is expected to grow by 23.28% in the next year.