ITRON INC (ITRI) Stock Fundamental Analysis
NASDAQ:ITRI - Nasdaq - US4657411066 - Common Stock - Currency: USD
ITRI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 124 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. ITRI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ITRI had positive earnings in the past year.
ITRI had a positive operating cash flow in the past year.
In multiple years ITRI reported negative net income over the last 5 years.
In the past 5 years ITRI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.70%, ITRI belongs to the top of the industry, outperforming 80.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 16.72%, ITRI belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
ITRI has a better Return On Invested Capital (7.00%) than 70.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ITRI is significantly below the industry average of 8.95%.
The last Return On Invested Capital (7.00%) for ITRI is above the 3 year average (2.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 16.72% | ||
| ROIC | 7% |
ROA(3y)-0.03%
ROA(5y)-0.1%
ROE(3y)-0.24%
ROE(5y)-0.3%
ROIC(3y)2.99%
ROIC(5y)3.49%
1.3 Margins
ITRI has a Profit Margin of 9.37%. This is in the better half of the industry: ITRI outperforms 79.17% of its industry peers.
Looking at the Operating Margin, with a value of 10.72%, ITRI belongs to the top of the industry, outperforming 80.83% of the companies in the same industry.
In the last couple of years the Operating Margin of ITRI has grown nicely.
ITRI has a Gross Margin (34.17%) which is comparable to the rest of the industry.
ITRI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.72% | ||
| PM (TTM) | 9.37% | ||
| GM | 34.17% |
OM growth 3Y26.16%
OM growth 5Y47.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.83%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ITRI is destroying value.
The number of shares outstanding for ITRI has been increased compared to 1 year ago.
Compared to 5 years ago, ITRI has more shares outstanding
The debt/assets ratio for ITRI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.61 indicates that ITRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
ITRI has a Altman-Z score (2.61) which is comparable to the rest of the industry.
ITRI has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as ITRI would need 7.02 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.02, ITRI is in line with its industry, outperforming 52.50% of the companies in the same industry.
ITRI has a Debt/Equity ratio of 0.92. This is a neutral value indicating ITRI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.92, ITRI is doing worse than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.85
WACC8.21%
2.3 Liquidity
ITRI has a Current Ratio of 3.36. This indicates that ITRI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.36, ITRI is in the better half of the industry, outperforming 65.83% of the companies in the same industry.
ITRI has a Quick Ratio of 2.83. This indicates that ITRI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ITRI (2.83) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
ITRI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 95.05%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.80% on average over the past years.
Looking at the last year, ITRI shows a quite strong growth in Revenue. The Revenue has grown by 16.53% in the last year.
ITRI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.77% yearly.
EPS 1Y (TTM)95.05%
EPS 3Y21.67%
EPS 5Y4.8%
EPS Q2Q%87.76%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y0%
Revenue growth 5Y-1.77%
Sales Q2Q%9.75%
3.2 Future
Based on estimates for the next years, ITRI will show a very strong growth in Earnings Per Share. The EPS will grow by 23.35% on average per year.
ITRI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.07% yearly.
EPS Next Y61.42%
EPS Next 2Y23.07%
EPS Next 3Y20.31%
EPS Next 5Y23.35%
Revenue Next Year12.26%
Revenue Next 2Y6.32%
Revenue Next 3Y6.16%
Revenue Next 5Y7.07%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.02, ITRI is valued on the expensive side.
Based on the Price/Earnings ratio, ITRI is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 29.63. ITRI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.51, which indicates a rather expensive current valuation of ITRI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITRI indicates a somewhat cheap valuation: ITRI is cheaper than 71.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ITRI is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
69.17% of the companies in the same industry are more expensive than ITRI, based on the Enterprise Value to EBITDA ratio.
ITRI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ITRI is cheaper than 69.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.97 | ||
| EV/EBITDA | 14.92 |
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 a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ITRI's earnings are expected to grow with 20.31% in the coming years.
PEG (NY)0.28
PEG (5Y)3.55
EPS Next 2Y23.07%
EPS Next 3Y20.31%
5. Dividend
5.1 Amount
ITRI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
93.94
-3.75 (-3.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners113.52%
Inst Owner Change2.16%
Ins Owners0.84%
Ins Owner Change0.03%
Market Cap4.24B
Analysts82.86
Price Target130.17 (38.57%)
Short Float %6.89%
Short Ratio6.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)41.97%
Min EPS beat(2)23.98%
Max EPS beat(2)59.95%
EPS beat(4)4
Avg EPS beat(4)47.26%
Min EPS beat(4)23.98%
Max EPS beat(4)60.04%
EPS beat(8)8
Avg EPS beat(8)180.33%
EPS beat(12)11
Avg EPS beat(12)141.4%
EPS beat(16)14
Avg EPS beat(16)112.83%
Revenue beat(2)1
Avg Revenue beat(2)0.42%
Min Revenue beat(2)-0.42%
Max Revenue beat(2)1.25%
Revenue beat(4)2
Avg Revenue beat(4)0.54%
Min Revenue beat(4)-0.77%
Max Revenue beat(4)2.09%
Revenue beat(8)6
Avg Revenue beat(8)2.11%
Revenue beat(12)6
Avg Revenue beat(12)-1.43%
Revenue beat(16)6
Avg Revenue beat(16)-3.23%
PT rev (1m)0%
PT rev (3m)4.34%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-0.46%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 18.51 | ||
| P/S | 1.76 | ||
| P/FCF | 23.97 | ||
| P/OCF | 20.54 | ||
| P/B | 3.14 | ||
| P/tB | 18.69 | ||
| EV/EBITDA | 14.92 |
EPS(TTM)5.52
EY5.88%
EPS(NY)5.07
Fwd EY5.4%
FCF(TTM)3.92
FCFY4.17%
OCF(TTM)4.57
OCFY4.87%
SpS53.34
BVpS29.9
TBVpS5.03
PEG (NY)0.28
PEG (5Y)3.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.7% | ||
| ROE | 16.72% | ||
| ROCE | 9.06% | ||
| ROIC | 7% | ||
| ROICexc | 10.69% | ||
| ROICexgc | 26.9% | ||
| OM | 10.72% | ||
| PM (TTM) | 9.37% | ||
| GM | 34.17% | ||
| FCFM | 7.35% |
ROA(3y)-0.03%
ROA(5y)-0.1%
ROE(3y)-0.24%
ROE(5y)-0.3%
ROIC(3y)2.99%
ROIC(5y)3.49%
ROICexc(3y)3.44%
ROICexc(5y)3.92%
ROICexgc(3y)9.53%
ROICexgc(5y)11.59%
ROCE(3y)3.87%
ROCE(5y)4.53%
ROICexcg growth 3Y20.84%
ROICexcg growth 5Y34.34%
ROICexc growth 3Y28.17%
ROICexc growth 5Y45.69%
OM growth 3Y26.16%
OM growth 5Y47.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.83%
GM growth 5Y1.34%
F-Score6
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 53.82% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 60.04 | ||
| Cash Conversion | 65.98% | ||
| Profit Quality | 78.42% | ||
| Current Ratio | 3.36 | ||
| Quick Ratio | 2.83 | ||
| Altman-Z | 2.61 |
F-Score6
WACC8.21%
ROIC/WACC0.85
Cap/Depr(3y)39.64%
Cap/Depr(5y)43.89%
Cap/Sales(3y)1.36%
Cap/Sales(5y)1.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)95.05%
EPS 3Y21.67%
EPS 5Y4.8%
EPS Q2Q%87.76%
EPS Next Y61.42%
EPS Next 2Y23.07%
EPS Next 3Y20.31%
EPS Next 5Y23.35%
Revenue 1Y (TTM)16.53%
Revenue growth 3Y0%
Revenue growth 5Y-1.77%
Sales Q2Q%9.75%
Revenue Next Year12.26%
Revenue Next 2Y6.32%
Revenue Next 3Y6.16%
Revenue Next 5Y7.07%
EBIT growth 1Y102.51%
EBIT growth 3Y26.17%
EBIT growth 5Y44.55%
EBIT Next Year156.41%
EBIT Next 3Y46.43%
EBIT Next 5Y38.49%
FCF growth 1Y801.71%
FCF growth 3Y15.72%
FCF growth 5Y14.52%
OCF growth 1Y398.06%
OCF growth 3Y4.5%
OCF growth 5Y2.62%