We assign a fundamental rating of 6 out of 10 to ITRI. ITRI was compared to 123 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes ITRI very considerable 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.
ITRI had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With an excellent Return On Assets value of 6.94%, ITRI belongs to the best of the industry, outperforming 85.37% of the companies in the same industry.
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 78.86% 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 8.87%.
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

The Profit Margin of ITRI (10.69%) is better than 85.37% of its industry peers.
In the last couple of years the Profit Margin of ITRI has grown nicely.
ITRI has a better Operating Margin (12.51%) than 81.30% of its industry peers.
ITRI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 36.30%, ITRI is in line with its industry, outperforming 59.35% of the companies in the same industry.
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.
Compared to 1 year ago, ITRI has less shares outstanding
Compared to 5 years ago, ITRI has more shares outstanding
Compared to 1 year ago, ITRI has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.63 indicates that ITRI is not a great score, but indicates only limited risk for bankruptcy at the moment.
ITRI has a Altman-Z score of 2.63. This is in the lower half of the industry: ITRI underperforms 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.
ITRI has a better Debt to FCF ratio (3.65) than 69.11% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that ITRI is not too dependend on debt financing.
ITRI's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. ITRI is outperformed by 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.47
Debt/FCF	3.65
Altman-Z	2.63

ROIC/WACC1.2

WACC7.48%

2.3 Liquidity

A Current Ratio of 2.17 indicates that ITRI has no problem at all paying its short term obligations.
With a Current ratio value of 2.17, ITRI perfoms like the industry average, outperforming 43.90% of the companies in the same industry.
A Quick Ratio of 1.91 indicates that ITRI should not have too much problems paying 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.
Looking at the last year, ITRI shows a small growth in Revenue. The Revenue has grown by 0.14% in the last year.
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.
Based on estimates for the next years, ITRI will show a small growth in Revenue. The Revenue will grow by 4.99% on average per year.

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

ITRI is valuated correctly with a Price/Earnings ratio of 16.20.
Compared to the rest of the industry, the Price/Earnings ratio of ITRI indicates a rather cheap valuation: ITRI is cheaper than 84.55% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.21. ITRI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.00, ITRI is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ITRI indicates a rather cheap valuation: ITRI is cheaper than 83.74% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. ITRI is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	16.2
Fwd PE	16

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ITRI is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ITRI is valued cheaply inside the industry as 91.06% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	13.09
EV/EBITDA	12.44

4.3 Compensation for Growth

The 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.